Gold Investor, October 2018
Gold Investor, October 2018 Simon Walsworth Thu, 18/10/2018 - 10:54 18 October, 2018 Aram Shishmanian Ex - CEO World Gold Council The past two decades have seen a radical shift in the world’s axis, as China has become a dominant global force economically, commercially and, increasingly, politically. In this edition of Gold Investor, we assess the outlook for China across a range of perspectives. The past two decades have seen a radical shift in the world’s axis, as China has become a dominant global force economically, commercially and, increasingly, politically. The figures are remarkable, the pace of change even more so. But there is still enormous potential for future growth. That potential is widely acknowledged, not least by the Chinese authorities. And they, along with others, recognise that the path to further expansion involves liberalisation, improved regulation and internationalisation. Initial steps have already been taken but much more action is planned over the coming decade and beyond. This has implications in many areas. In this edition of Gold Investor, we explore those implications and assess the outlook for China across a range of perspectives. Professor Zhou, Associate Dean at the world-renowned Tsinghua University PBC School of Finance, considers how best to leverage past lessons as China develops its financial markets in a world characterised by widespread geopolitical tension. Within China’s financial markets, the insurance industry now manages US$2 trillion (tn) of assets, following a decade of rapid growth. The Insurance Asset Management Association of China explains why this fast-growing sector might benefit from investing some of its US$2tn assets in gold. We also examine ways in which stronger market infrastructure and improved regulation would boost confidence in China’s gold investment industry, following an in-depth report from one of China’s leading think-tanks, the Financial Research Institute of the Development Research Center of the State Council. The China Gold Association echoes the need for more robust regulation, suggesting that the mining industry can become a prominent player on the international stage, if it becomes both more disciplined and more outward facing. The “Belt and Road” initiative has become a symbol of China’s international ambition and its deepening relationship with emerging markets worldwide. Xiao Fu, Head of Commodity Markets’ Strategy at Bank of China International, considers progress to date and the considerable impact that this extensive project will have on the gold market. Any comprehensive view of China’s gold market would not be complete without an analysis of its jewellery industry, the largest in the world by some margin. Chow Tai Fook, one of country’s most prominent retailers, believes prospects are bright but acknowledges that the industry has to make both structural and strategic changes to attract younger, affluent customers. I have watched China develop at an extraordinary pace during my years as Chief Executive of the World Gold Council. Today, the focus of the gold market has shifted definitely from West to East with China at the forefront. It is increasingly taking a leadership position worldwide. This is reflected in the increased number of Chinese mining companies that are becoming members of the World Gold Council. To facilitate their active participation on the Board of the Council, we have created the China Chapter which is chaired by Mr Song, the Chairman of China Gold International Resources Corp Ltd and also of the China Gold Association. The China Chapter also provides a platform for China’s leading gold miners and market leaders to guide and engage in our programmes at the highest level. We are always keen to hear your views about Gold Investor so please email us at goldinvestor@gold.org . We hope you enjoy the read. Aram Shishmanian Report Section Report: Download pdf Gold Investor, October 2018 Download pdf 黄金投资者 2018年10月 Sections: Download pdf Foreword - A new chapter in China Download pdf Gold Investor October 2018 - In the news Download pdf The economic outlook for China Download pdf Prospects for gold in China’s insurance industry Download pdf Why Chinese investors could benefit from gold Download pdf The way ahead for China’s gold market Download pdf Potential for growth in China’s jewellery market Download pdf A confident outlook from Chow Tai Fook Jewellery Group Download pdf China’s gold mining industry: a story of growth Download pdf Beyond the golden brick road Download pdf Gold Investor October 2018, Key gold market statistics © 2018 World Gold Council. All rights reserved. World Gold Council and the Circle device are trademarks of World Gold Council or its affiliates. All references to LBMA Gold Price are used with the permission of ICE Benchmark Administration Limited and have been provided for informational purposes only. ICE Benchmark Administration Limited accepts no liability or responsibility for the accuracy of the prices or the underlying product to which the prices may be referenced. Other third party content is the intellectual property of the respective third party and all rights are reserved to them. Reproduction or redistribution of any of this information is expressly prohibited without the prior written consent of World Gold Council or the appropriate copyright owners, except as specifically provided below. The use of the statistics in this information is permitted for the purposes of review and commentary (including media commentary) in line with fair industry practice, subject to the following two pre-conditions: (i) only limited extracts of data or analysis be used; and (ii) any and all use of these statistics is accompanied by a citation to World Gold Council and, where appropriate, to Metals Focus and Thomson Reuters, as their source. World Gold Council does not guarantee the accuracy or completeness of any information. World Gold Council does not accept responsibility for any losses or damages arising directly or indirectly from the use of this information. This information is not a recommendation or an offer for the purchase or sale of gold, any gold-related products or services or any other products, services, securities or financial instruments (collectively, “Services”). Investors should discuss their individual circumstances with their appropriate investment professionals before making any decision regarding any Services or investments. This information contains forward-looking statements, such as statements which use the words “believes,” “expects,” “may,” or “suggests,” or similar terminology, which are based on current expectations and are subject to change. Forward-looking statements involve a number of risks and uncertainties. There can be no assurance that any forward-looking statements will be achieved. We assume no responsibility for updating any forward-looking statements. In the news The economic outlook for China Prospects for gold in China’s insurance industry Why Chinese investors could benefit from gold The way ahead for China’s gold market Potential for growth in China’s jewellery market A confident outlook from Chow Tai Fook Jewellery Group China’s gold mining industry: a story of growth Beyond the golden brick road Key gold market statistics Gold investment jewellery mining Institutional Investment Economics 2018 Gold Investor outlook gold investing demand supply risk management prices retail gold investment Gold production
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Headline: Gold Investor, October 2018 Lead: Gold Investor, October 2018 Simon Walsworth Thu, 18/10/2018 - 10:54 18 October, 2018 Aram Shishmanian Ex - CEO World Gold Council The past two decades have seen a radical shift in the world’s axis, as China has become a dominant global force economically, commercially and, increasingly, politically. In this edition of Gold Investor, we assess the outlook for China across a range of perspectives. The past two decades have seen a radical shift in the world’s axis, as China has become a dominant global force economically, commercially and, increasingly, politically. The figures are remarkable, the pace of change even more so. But there is still enormous potential for future growth. That potential is widely acknowledged, not least by the Chinese authorities. And they, along with others, recognise that the path to further expansion involves liberalisation, improved regulation and internationalisation. Initial steps have already been taken but much more action is planned over the coming decade and beyond. This has implications in many areas. In this edition of Gold Investor, we explore those implications and assess the outlook for China across a range of perspectives. Professor Zhou, Associate Dean at the world-renowned Tsinghua University PBC School of Finance, considers how best to leverage past lessons as China develops its financial markets in a world characterised by widespread geopolitical tension. Within China’s financial markets, the insurance industry now manages US$2 trillion (tn) of assets, following a decade of rapid growth. The Insurance Asset Management Association of China explains why this fast-growing sector might benefit from investing some of its US$2tn assets in gold. We also examine ways in which stronger market infrastructure and improved regulation would boost confidence in China’s gold investment industry, following an in-depth report from one of China’s leading think-tanks, the Financial Research Institute of the Development Research Center of the State Council. The China Gold Association echoes the need for more robust regulation, suggesting that the mining industry can become a prominent player on the international stage, if it becomes both more disciplined and more outward facing. The “Belt and Road” initiative has become a symbol of China’s international ambition and its deepening relationship with emerging markets worldwide. Xiao Fu, Head of Commodity Markets’ Strategy at Bank of China International, considers progress to date and the considerable impact that this extensive project will have on the gold market. Any comprehensive view of China’s gold market would not be complete without an analysis of its jewellery industry, the largest in the world by some margin. Chow Tai Fook, one of country’s most prominent retailers, believes prospects are bright but acknowledges that the industry has to make both structural and strategic changes to attract younger, affluent customers. I have watched China develop at an extraordinary pace during my years as Chief Executive of the World Gold Council. Today, the focus of the gold market has shifted definitely from West to East with China at the forefront. It is increasingly taking a leadership position worldwide. This is reflected in the increased number of Chinese mining companies that are becoming members of the World Gold Council. To facilitate their active participation on the Board of the Council, we have created the China Chapter which is chaired by Mr Song, the Chairman of China Gold International Resources Corp Ltd and also of the China Gold Association. The China Chapter also provides a platform for China’s leading gold miners and market leaders to guide and engage in our programmes at the highest level. We are always keen to hear your views about Gold Investor so please email us at goldinvestor@gold.org . We hope you enjoy the read. Aram Shishmanian Report Section Report: Download pdf Gold Investor, October 2018 Download pdf 黄金投资者 2018年10月 Sections: Download pdf Foreword - A new chapter in China Download pdf Gold Investor October 2018 - In the news Download pdf The economic outlook for China Download pdf Prospects for gold in China’s insurance industry Download pdf Why Chinese investors could benefit from gold Download pdf The way ahead for China’s gold market Download pdf Potential for growth in China’s jewellery market Download pdf A confident outlook from Chow Tai Fook Jewellery Group Download pdf China’s gold mining industry: a story of growth Download pdf Beyond the golden brick road Download pdf Gold Investor October 2018, Key gold market statistics © 2018 World Gold Council. All rights reserved. World Gold Council and the Circle device are trademarks of World Gold Council or its affiliates. All references to LBMA Gold Price are used with the permission of ICE Benchmark Administration Limited and have been provided for informational purposes only. ICE Benchmark Administration Limited accepts no liability or responsibility for the accuracy of the prices or the underlying product to which the prices may be referenced. Other third party content is the intellectual property of the respective third party and all rights are reserved to them. Reproduction or redistribution of any of this information is expressly prohibited without the prior written consent of World Gold Council or the appropriate copyright owners, except as specifically provided below. The use of the statistics in this information is permitted for the purposes of review and commentary (including media commentary) in line with fair industry practice, subject to the following two pre-conditions: (i) only limited extracts of data or analysis be used; and (ii) any and all use of these statistics is accompanied by a citation to World Gold Council and, where appropriate, to Metals Focus and Thomson Reuters, as their source. World Gold Council does not guarantee the accuracy or completeness of any information. World Gold Council does not accept responsibility for any losses or damages arising directly or indirectly from the use of this information. This information is not a recommendation or an offer for the purchase or sale of gold, any gold-related products or services or any other products, services, securities or financial instruments (collectively, “Services”). Investors should discuss their individual circumstances with their appropriate investment professionals before… (AI-assisted rewrite, based on the original source)
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