By Barry Stuppler - MintStateGold.com
Gold is trading at $1,501.40 at 11am PDT, up $3.20 per ounce as the current correction ends and the market starts to build a new trading range and base.
The middle class is emerging in China, with over one million new Chinese millionaires in the past two years. China’s gold sales will continue to increase and is expected to grow over 20% in the next two years, according to China Gold Association. Gold's luster is continuing to attract rising domestic demand and China will continue to "outperform" other countries in private consumption of the precious metal. China Daily quotes Zhang Bingnan, secretary-general of the China Gold Association, as saying the amount of individual buyers expected to purchase Gold as an investment is expected to surge two-fold annually, and the government's gold reserves are "far from enough" and should be increased to fend off global financial risks. According to the China Gold Association, domestic gold sales for last year were 571.51 tons, up 21.26% from 2009.
Since the international financial crisis, China has led the growth in gold sales worldwide. This is set to continue in the coming years as the "average holding of gold by individuals is still too small, and the nation's rapid economic growth will further stimulate consumption and investment", Zhang said. "Demand for gold, mostly driven by investment, will grow at least 20% this year" he added.
Silver is up $.22 cents at 11am PDT, trading at $33.92 per ounce as it takes its direction from the Gold market.
Higher Silver prices and limited supplies have hampered the solar industry's ability to compete with fossil fuels. Panel makers consume about 11% of the world's supply of Silver, which is used to conduct electricity in solar cells. The metal has appreciated 74% to $35.30 a troy ounce on average so far this year, from $20.24 for last year. Prices for solar cells have dropped about 27% this year and would be even lower if each panel didn't require about 20 grams of silver, according to Bloomberg New Energy Finance.
Today's Other Important News:
- The Central bank of Russia (CBR) sticks closely to its long-term gold buying strategy. However, recent data clearly illustrates that the CBR has sped up its annual increase by 6.1%
- May 2011 U.S. consumer spending came in level, against an expected 0.2% increase, while personal incomes rose 0.3% from a previous 0.2%.
- U.S. home prices rose for the first time in eight months with a 0.7% increase, according to the S&P/Case-Shiller home price gauge.