RAPAPORT... Just as gold was comfortably holding at $820 per ounce and better midday, news emerged from China that the country would not only surpass gold production from the United States this year, but too could surpass South Africa by year 2012 as local demand continues to strengthen.
The China Gold Association's deputy Hou Huimin told Bloomberg news that China expects to produce 260 metric tons in 2007, whereas the United States anticipates 250 tons.
Bloomberg quoted Philip Klapwijk, executive chairman of GFMS Ltd., as saying China stands a "good chance" of surpassing South Africa production sooner. For the first half of 2007, South Africa has produced 134 tons, Klapwijk said.
Hou predicted too that consumer demand for gold in China will likely push gold past $850 per ounce in early 2008 -- the figure largely seen as the all time record price (adjusted for inflation) hit in 1980.
Surging gold demand has also driven-up private investments into China's top production companies, especially Zhongjin Gold Corp., and Zijin Mining Group Co.