Recently on television in Hong Kong there was a report of how Chinese people were lining up at jewelry stores to purchase bullion gold. Several persons were interviewed and said they intended to purchase a few kilos of bullion gold each.

With China keen to keep property prices down, the traditional hedge against inflation of purchasing bricks and mortar in China is becoming more and more regulated and discouraged.

According to xinhuanet.com "more than 20 cities had imposed caps on the number of apartments a family can buy as of the end of February, another step to discourage speculative and investment purchases."

(http://news.xinhuanet.com/english2010/china/2011-03/05/c_13763061.htm)

This has resulted in a rush to find other inflation hedges such as gold and silver and such demand has become ferocious. The emergence of a Chinese bank supported gold gifting product shows that the trend for gold and silver has very good support and that Chinese demand is expected to continue to grow. Notice how the gift bars are available in the 1000g size. How many people in the West would expect to be able to give and receive kilo-sized gold bullion as gifts?

(http://www.coinweek.com/bullion-report/gift-investment-bars-to-be-offered-for-first-time-in-china/)

There would seem to be an underlying expectation that gold will prove to be a wonderful tool for facilitation in China.