The World Gold Council has taken an in-depth look at the outlook for gold consumption in China in 2022. And to put it briefly, even if GDP growth should slow down, there is a lot to be said for a strong push for gold. Demand for gold jewelry, it is predicted, will rise as long as the price of gold in the country remains reasonably stable. This is because younger people in particular increasingly see gold jewelry as an investment in the future. Likewise, the demand for gold coins and bars could go up compared to pre-pandemic times. That’s when inflation, the weak Chinese currency and also the low opportunity cost of holding gold should have an impact.

Already in 2021, China’s gold consumption increased by around 56 percent compared to 2020. Gold jewelry alone even saw a year-on-year increase of 63 percent in 2021. An economic recovery set in and the gold price was down after the record high in 2020. That strength should continue this year. Not least because local banks are trying hard to sell gold. Looking at China’s monetary policy, interest rates should remain low this year, as should bond yields. Uncertainties due to the global pandemic could also provide further inflationary pressure. All this is a good environment for strong gold consumption.

Gold companies such as Karora Resources – https://www.youtube.com/watch?v=KAhnvcnVjDY – will then also profit from this. For the current year, the company expects a gold production of 110,000 to 135,000 ounces, at a total cost of 950 to 1,050 US dollars per ounce.

Dividend-paying GCM Mining – https://www.youtube.com/watch?v=Sr5GaectIig – successfully operates the Segovia property in Colombia. This produced almost 208,000 ounces of gold in the last twelve months.

Current corporate information and press releases from GCM Mining (- https://www.resource-capital.ch/en/companies/gcm-mining-corp/ -) and Karora Resources (- https://www.resource-capital.ch/en/companies/karora-resources-inc/ -).

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