Gold Fundamentals – Macro Recent Developments
China
- Establishment of Shanghai Gold Exchange in 2002
- Further liberation of Chinese gold market in 2003
- Removed all barriers to gold licensing for the manufacture, distribution and retailing of gold products
- Expected to have a substantial impact on gold demand
- 2002 gold demand in China was ~200 tonnes
- 2002 gold demand per capita in China was 0.16 grams
- Less than 1/3 of Indian demand
- Less than 1/5 of Taiwanese demand
- Historic cultural affinity for gold