In 2020, China's gold demand slipped to a nine-year low, but in 2021, demand rose 55 percent compared to 2020, according to the World Gold Council. About 70 percent of gold in China goes into jewelry production. The remaining 30 percent becomes gold coins or bars. Lockdowns and travel restrictions caused China's demand to plunge 11 percent in the first quarter of 2022 compared with the previous quarter. Most forecasts are for weakened economic growth in China this year, which is not so good for gold prices. The signs from the second country that consumes a lot of gold, India, are better.
India is the largest importer of gold, while gold production in its own country is low. Also in India, most of the gold, about 77 percent, goes to the jewelry industry. In India, jewelry demand depends a lot on festivals and holidays. Therefore, the drop in demand in the first three quarters of 2022 was very high. However, demand in India should recover, the price of gold has fallen, and so gold consumption was also high in May. Compared to 2021, gold imports increased by 822 percent in May compared to the same month last year. In the process, India is expected to overtake China in terms of gold consumption. Encouraging figures are also just coming out of China. In June, significantly more gold found its way to China again, about five times as much as in the previous month. The reason for this is presumably the relaxed Covid 19 measures. Those who love gold as much as the Chinese and Indians can look around at well-positioned gold companies such as Fury Gold Mines or Aztec Minerals.
Fury Gold Mines - https://www.youtube.com/watch?v=iPcFnyi7i3M - is committed to excellent areas with prospective projects in British Columbia and Nunavut.
Aztec Minerals - https://www.youtube.com/watch?v=470uITYna_E - holds a 100% interest in the Cervantes porphyry gold-copper project in Mexico. In addition, there are the historic Tombstone properties in Arizona with gold, silver, lead and zinc.
Latest corporate information and press releases from Fury Gold Mines (- https://www.resource-capital.ch/en/companies/fury-gold-mines-ltd/ -).
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