China's gold demand for jewellery and investment is surging despite record high prices, industry officials told a conference on Thursday, while predicting the country's appetite for the yellow metal is likely to rise further in the coming years. Cheng Bing Hai, president of the Shanghai Gold and Jewellery Trade Association, said total jewellery sales by the top three jewellers in Shanghai have already exceeded 100 tonnes so far this year.
"The volume has jumped from a year ago; demand is growing very strongly," Cheng told reporters at the sidelines of an industry conference. The three largest gold jewellers in Shanghai are Laofengxiang, Laomiao and Shanghai First Asia. Cheng did not specify the growth volume in percentage terms. Cheng said total gold sales by China's ICBC Bank, offered by the lender as part of its investment products, has also topped 40 tonnes.
The World Gold Council said China's gold consumption this year was expected to grow around 10 percent from a year ago to reach 750 tonnes. "China's consumption is projected to grow strongly over the coming decade," said Albert Cheng, WGC's managing director for the Far East region.