WGC Analyzes Chinese Gold Market Prospects

SEATTLE (Scrap Monster): The Gold Investor, October 2018 report published by the World Gold Council (WGC) notes that Chinese gold market has undergone significant transformation over the past two decades. The report outlines the key challenges facing the country’s gold market. It also recommends the steps that need to be taken to overcome these challenges, so as to lift the market to its full potential.

The WGC identifies three key challenges. Firstly, the current regulations in the country prevent long-term asset owners such as pension funds and insurance companies from gold investment, thereby narrowing the investor base. Secondly, it recommends radical change to gold market infrastructure. Also, WGC recommends more robust regulatory framework to curb unregulated gold trading.

According to WGC, necessary steps must be taken to integrate the Chinese gold market with the global gold market, in order to realize its full potential. Further, the Council assured that it would work with government bodies, market regulators and practitioners towards development of the market on a long-term, sustainable basis.

The Council expects China to take leadership role in gold markets over the forthcoming years, by becoming home to the world’s largest gold market. The country’s gold market is predicted to become more open over the next decade. Innovations are likely to boost the use of gold in technology, it says.