By Tu Lei (chinadaily.com.cn)
Updated: 2007-10-22 16:18

Sources familiar with the gold industry predict imports to China to rise, according to today's China Business News.

Zhang Weixing, an industry expert said gold in the Chinese market will be scarce next year due to investment and collection fever. "It is possible more gold will be imported from overseas," he said.

He made the remarks in an investment forum held in Beijing on October 20.

Zhang predicted the general civil gold reserve has reached 4,000 tons, while reserves at People's Bank of China total about 600 tons.

"Average gold consumption in China is still much lower than international levels, although consumption has increased from 0.16 grams in 2002 to the current 0.35 grams," said Zhang.

Zhang said the price of gold has been pushed higher by a weakened US dollar, geopolitical concerns, and record high price. In China, more people are shifting to buying gold products on news of rising CPI and stock fever.

Huang Hanju, president of Xihanzhi Gold Co Ltd, said the rising gold price provides a stable investment channel for ordinary people.

The price of gold has leapt to its highest level since 1980, surging to as high as US$771.10 an ounce in trading.

The precious metal has now risen by almost 30 percent in value over the last year. The price in 2002 was around US$300.