China's Gold Demand Seen Rising by 17% in 2011

China's gold purchases could push imports of the precious metal bullion to 400 tons in 2011, up a little more than 17% from the estimated 340 tons imported last year, according to precious metals consultancy GFMS in London.

Increased appetite for silver investment products too, combined with a forecast 16% annual growth just for industrial purposes, could mean that China's total silver consumption will outstrip domestic supply this year, Philip Kalpwijk, executive chairman of GFMS said Friday. "There is a widening demand for silver as an investment in China because of its lower entry point. It is also being increasingly recognized as a physical investment asset, which will support demand," Kalpwijk told a press conference in Shanghai on Friday.