China's hunger for gold
There are several indications that China's hunger for gold is growing. The so-called Golden Week has just come to an end.
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The seven-day celebration of China's National Day began on October 1, it is the peak travel season for the Chinese and gold goes over the counter. This time, many retailers saw an increase in sales. Seasonality, government incentives and positive consumer sentiment drove gold consumption. In contrast, business was not as good in cities with a renewed covid resurgence and its accompanying restrictions. In any case, wholesale demand for the precious metal has been robust in recent months. In fact, demand in this sector increased by about eight percent in September compared to the previous month. This was the fifth consecutive month-on-month increase.
Gold is trending among China's Generation Z gold customers. Generation Z and Millennials now account for 20 percent of gold jewelry purchases in Beijing shopping malls. Last year, they accounted for only 10 percent. According to the branch manager of China Gold's flagship store in Beijing, sales during the Spring Festival holiday were up about 60 percent year-on-year. A survey conducted by the World Gold Council in 2021 found that 60 percent of Chinese citizens were thinking about buying gold jewelry, compared with only 16 percent in 2016. The gold jewelry trend for Generation Z and Millennials is driven by emerging jewelry designers. These are tapping into new ways to connect with customers. Also, according to the World Gold Council, very transparent gold prices exist in the Chinese gold market, thus a buyer-influencing positive feature. For whom gold is synonymous with a savings currency, as many Chinese see it, should also put a few gold shares in the depot, for example Trillium Gold Mines or Karora Resources.
Trillium Gold Mines - https://www.youtube.com/watch?v=5ILnR9Y6Vfc - provides exploration and development services for projects in the Red Lake mining district in Ontario.
Karora Resources - https://www.youtube.com/watch?v=y5HXuXb8Jhg - is pleased to report record production of more than 38,000 ounces of gold from its two gold mines in Western Australia.
Current corporate information and press releases from Karora Resources (https://www.resource-capital.ch/en/companies/karora-resources-inc/ ) and Trillium Gold Mines (https://www.resource-capital.ch/en/companies/trillium-gold-mines-inc/ ).
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