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19 Mar 2015
Asian gold demand to double by 2030 - ANZ
FXStreet (Mumbai) - Gold demand in Asia is set to double by 2030 and boost prices to a record as investment and jewellery purchases climb, according to Australia & New Zealand Banking Group Ltd (ANZ).
ANZ Analysts noted in their report, demand from retail and institutional investors will jump to almost 5,000 metric tons a year by 2030 from 2,500 tons. Prices may rise to more than USD2,000 an ounce by 2025 and to USD2,400 by 2030, they said. The bank says it supplied more than 20% of China’s gold imports last year.
Demand in India and China, the world’s biggest buyers, will total 900 tons to 1,000 tons each this year and central banks will buy at least 400 tons, according to the World Gold Council.
Hogan, chief economist at ANZ notes, “The bedrock, the anchor of our views of increasing demand for physical gold will come from rising incomes in Asia,”
“Gold is going to have that investment role and it’s going to become more prominent.”
Hogan added, “Bullion demand may also expand as aging investors boost holdings in defensive assets and the development of Asia’s financial systems increases funds under management.“
”Central banks may add to holdings to diversify reserves and shore up confidence in newly floated currencies.”
Further the report stated, rising incomes in Asia will increase gold demand as people purchase more jewellery and continue to channel savings into gold for cultural reasons.
ANZ Analysts noted in their report, demand from retail and institutional investors will jump to almost 5,000 metric tons a year by 2030 from 2,500 tons. Prices may rise to more than USD2,000 an ounce by 2025 and to USD2,400 by 2030, they said. The bank says it supplied more than 20% of China’s gold imports last year.
Demand in India and China, the world’s biggest buyers, will total 900 tons to 1,000 tons each this year and central banks will buy at least 400 tons, according to the World Gold Council.
Hogan, chief economist at ANZ notes, “The bedrock, the anchor of our views of increasing demand for physical gold will come from rising incomes in Asia,”
“Gold is going to have that investment role and it’s going to become more prominent.”
Hogan added, “Bullion demand may also expand as aging investors boost holdings in defensive assets and the development of Asia’s financial systems increases funds under management.“
”Central banks may add to holdings to diversify reserves and shore up confidence in newly floated currencies.”
Further the report stated, rising incomes in Asia will increase gold demand as people purchase more jewellery and continue to channel savings into gold for cultural reasons.