SEE MORE: Let the Good Times Roll for Gold Miners ETFs
Total gold demand, which includes usage in jewelry manufacturing and the industrial sector, for the first half was 2,335 metric tons, the second highest on record.
“The potential drivers of increased Chinese physical buying include purchasing gold as a way to hedge for potential currency depreciation in the face of capital controls,” analysts including Jeffrey Currie and Max Layton, wrote in a report dated Oct. 24. Bullion consumption in China may also rise “as a way of diversifying away from the property market,” they said in a Bloomberg article.
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SPDR Gold Shares (NYSEArca: GLD)
Tom Lydon’s clients own shares of GLD.