China Retail Gold Survey 2013: China’s gold market takes its own path

China Retail Gold Survey 2013: Results index

Methodology

Commentators calling the decline of the Chinese economy clearly haven’t told the country’s gold market investors. China’s economy is growing at its slowest rate in three years – 7.5% in the second quarter – but Shanghai premiums on gold bullion stood at more than $30 an ounce above the international benchmark set by London pricing, at the time of writing in mid-July.

Why? Partly, this is because household consumption is a very low part of GDP in China, so it’s not so odd for demand to be increasing at a household level while overall GDP growth declines.