Gold demand rises in a special year

CHINA'S gold demand rose in the second quarter following demand for jewelry for the "Golden Pig" year, the World Gold Council said yesterday.

Gold demand in China, including the Chinese mainland, Hong Kong, and Taiwan, rose 29 percent in the second quarter to 85.5 tons, the World Gold Council said in a report.

Mainland gold demand rose 32 percent to 75.9 tons in the three months ending June.

Gold jewelry demand rose 30 percent in the period to 70.6 tons while the demand of gold investment rose 76 percent by adding 5.3 tons on China's mainland.

"A strong economic growth and expectation of high returns from the red-hot stock market have given residents more money for spending," the gold advocate said yesterday.

"A less fluctuating gold prices also help the sales." Sales of gold pieces in the shape of pigs, or related to the concept, mostly drove gold jewelry sales on the mainland.

It derives from the traditional belief that gold pieces with the zodiac animal image can keep away devils from the newly born or people in the year of fate.

It is widely believed that this lunar year is the year of the "Golden Pig" which only falls every 60 years. Tradition says babies born in the year will have an exceptionally good fate.

Investment gold also boomed in the period as more lenders are joining the market, the council said.

The council also expected rising sales of gold in the third quarter, especially the period close to the shopping spree that comes with the seven-day golden holidays for National Day.

Chinese have always regarded gold as a haven and a symbol of fortune.