Demand for physical gold in China increased by 51% in the first half of 2017. A sharp rise compared with the same period last year. Chinese buy gold for a number of reasons.
The main reasons are the Chinese capital injections that make it more difficult for Chinese to invest in foreign exchanges. In addition, figures from the China Gold Association show that gold mining in China has further decreased. According to the Association, demand for gold among Chinese can increase even further. And reaching the same quantities as in 2013 when a sudden drop in price by 10% caused a huge demand.
Other reasons why demand is increasing is the persistent volatility of the Chinese Yuan and geopolitical tensions in the region. With America pushing Chinese leaders to address North Korea in particular.