Demand for gold around the world remains high regardless of economic highs and lows for one reason: developing nations and economies want to consume more gold, while industrialized nations want to retain their gold holdings. The balance of gold ownership has swung heavily in favor of China over the past decade, as an economy growing by double-digit percentages each year has created a massive middle class with a vested interested in investments and luxury goods.
The upcoming 2014 China Mining Congress and Exposition will be held October 20-23, 2014. The event will bring together major players in the mining industry in China, including mining companies, government entities, media partners, sponsors and supporters. The event will feature three components, conferences, exhibitions and featured events, covering topics of mining industry trends, the global commodity market, sustainable development, investment opportunities, geological surveys, mining equipment and more. The Congress could provide indirect indicators of the future of gold for investors who understand the importance of China’s gold consumption on the global commodities market.
The Future Of Gold
How can a nation with relatively unimpressive gold prospects seek to enjoy a much greater share of the global market? China cannot produce much of its own gold, or at least nowhere near enough to meet demand. The Congress will discuss topics on gold exploration outside Chinese borders, tackling problems in mining in areas that are close to uninhabitable (such as Siberia) or under contention from various political and military groups. It’s a trend that the Chinese are well used to: the nation imports far more coal than it produces, far more food than it produces, and far more iron than it produces. The Congress will look towards bright spots and problem areas in the quest to bring more of the precious metal to Chinese markets.
Gold Prices and Reactions
More than likely there will be no immediate reaction to the discussions on the commodities markets. However, a successful and informative set of panels may attract the attention of journalists who in turn help to fuel the rumors about Chinese interest in gold and new exploits in mining and development. It’s a good idea to keep a close eye on not only gold and gold futures, but also (if you like investing on a global scale) Chinese gold mining institutions and banking operations that put their weight behind the 2014 Congress. After all, the ones that are pushing the hardest for new operations will be the ones who reap the most benefits in the event that mine speculations turn out to be lucrative.