Gold: Jewelry Demand Returns in China and India
April 2021
By Joe Foster, Portfolio Manager and Strategist
China and India are by far the largestconsumers of gold in the world. Asian jewelry demand is price sensitive, whichmeans demand typically increases on price weakness. Gold demand in India andChina is showing signs of recovery after having been decimated in 2020.
The World Gold Council and Reuters report thatIndian gold imports were up 45% and 72% in December and January, respectively.Metals Focus shows Chinese jewelry sales returning to normal in yuan terms inthe fourth quarter of 2020, while tonnages appear to be trending towards normalin the first quarter of 2021. This improving Asian demand should providesupport for gold.
MVIS Global Junior Gold Miners Index
03/31/2020-03/31/2021
Source: MV Index Solutions GmbH. All values are rebased to 1,000. Data as of 31 March 2021.About the Author:
Joe Foster has been Portfolio Manager for the VanEck International Investors Gold Fund since 1998 and the VanEck – Global Gold UCITS Fund since 2012. Mr. Foster, an acknowledged authority on gold, has over 10 years of dedicated experience in geology and mining including as a gold geologist in Nevada. He has appeared in The Wall Street Journal, Financial Times, Barron\s, and on Reuters, CNBC and Bloomberg TV. Mr. Foster has also published articles in a number of mining journals, including Mining Engineering and Geological Society of Nevada.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.
Get the latest news & insights from MarketVector
Get the newsletterRelated:
Most popular
-
CommentaryCommentary test
-
CommentaryPrice is a Liar!
