New Gold Demand Driver? China’s Gold Jewelry Demand Doubles In First Half Of 2021!

New Gold Demand Driver? China’s Gold Jewelry Demand Doubles In First Half Of 2021!

demand for gold jewelry in china doubled in the first half of 2021 why did it double because more affluent 20 and 30 something millennials in china are buying heritage gold jewelry if you’re not familiar with heritage gold jewelry this is more intricate gold jewelry that requires a lot more craftsmanship i’ll attach two articles in the information and description section one is from reuters the other is from the south china morning post going into more details about chinese heritage jewelry and also pictures showing what different chinese heritage jewelry looks like if you want to see more pictures of the gold jewelry a lot of it actually looks like artwork now china was importing around 100 metric tons of physical gold per month but this increase in gold jewelry demand could substantially increase the amount of tonnage imported into china if demand does continue to increase and the world gold council is projecting a 15 billion dollar market for china heritage gold by 2024 so this is a rapidly growing gold market so we are seeing a lot more signs of net central bank purchases and a physical gold demand from china in different aspects so the physical market is still very strong meanwhile the paper price in u.s dollars is still managed however the gold price in other currencies and the other major currencies is doing very very well so in the past when gold in us dollars went on big big rallies normally the things that preceded this a big move in the us dollar gold price was a increase in physical demand for gold and also gold doing well in other currencies besides the dollar so you see the setup here where the demand for physical gold whether that’s net central bank purchases is very very strong and also gold is doing well in other major currencies mining shares have not done as well i think there’s a big discount with some of the quality gold stocks a lot of them are starting to increase dividends though but if the valuations on some of the better gold stocks continue to be cheap you’re going to see for the first time maybe in the history of the gold mining industry a very large merger is an acquisition boom with the larger gold stocks that actually have really good balance sheets really good profit margins really good free cash flow and not only are they increasing dividends and doing share buybacks but they also have good enough free cash flow and profit margins and clean balance sheets to go and buy assets for pennies on the dollar i’ve been covering gold and silver for over a decade now and the gold and silver industry has actually never really had great balance sheets so this is by far the best in terms of balance sheet health that gold stocks have ever had industry wide so mergers and acquisitions will pick up i may put out a article for patrons in the next week or so about mergers and acquisitions and some potential targets for quality gold mines that i think could be acquired in the next six months or so if gold stock valuations do not improve finally if you like content like this i want to help keep content like this free so it doesn’t all end up behind a paywall or you want far more in-depth content research financial education and analysis than i provide in the short little free videos there are over 180 articles charts and audio podcasts behind the paywall including 26 new articles out in the last 11 or so weeks exclusively for patrons all for the cost of a starbucks cup of coffee per month i think it is one of the best deals out there no one charges in this space at least less than me for premium content if you don’t like it you could always cancel although i think you’re really going to like it as there are many in-depth articles on global macro companies and sectors a lot of articles about gold mining silver mining precious metal royalty and streaming companies the better run gold stocks that are increasing their dividends lately so there’s some really good income opportunities you’re getting paid to wait while gold rises these underlying businesses are actually doing very very well despite the paper gold price in dollars being controlled or managed so if i could wrap up this short little video very quickly in the past the chinese gold demand a lot of it was from the chinese government in the past a lot of the private sector gold demand in china was from very affluent chinese but also from chinese aunties so these are more fluent older women in china that save their money some of them may not be married or they have been widowed and they were the ones historically if you went back and looked up a lot of chinese gold demand articles that were stockpiling metal physical gold and silver they do a lot of the investing a lot of the finances of the families in china but this new source of demand is 20 and 30 year old chinese millennials that are more affluent probably because a lot of them are working technology jobs they’re working in the chinese technology sector they’re developing apps they’re probably in crypto they probably took some profits off the table for some of these cryptocurrencies and they’re probably moving into more undervalued assets as crypto has had an enormous crackdown in china so the new source of physical gold demand instead of chinese aunties in the past appears to be 20 and 30 year old millennials that are buying more intricately designed chinese heritage gold which is more like pieces of art and i’ll attach two articles if you want to read more about this type of gold in the information and description section of the video
rn

New Gold Demand Driver? China\'s Gold Jewelry Demand Doubles In First Half Of 2021!

rn

Share this post

Leave a Reply

Your email address will not be published.