Chinese Gold Bar and Coin demand increase sharply during Q2
SHANGHAI (Scrap Register): Chinese gold bar and coin demand increased by 56% year-on-year, reaching 62.6 tons during the second quarter of this year, according to the World Gold Council.
This was a solid quarter, broadly in line with the three- and five-year average quarterly demand of 62.9t and 69.5t respectively. But when we look at recent trends it is clear that Chinese retail investment has slowed down a little.
China saw exceptionally strong demand in the final quarter of 2016 and the first quarter of 2017, with over 100t bought in each.
A depreciating currency and fears over State-imposed restrictions on the property markets in Tier 1 and 2 cities fuelled demand for gold as a high-quality liquid asset.1 So far in 2017, however, the yuan has stabilised and the property market regulations have not had the impact many investors had feared.