Inflation, already at a 34-month high, is expected to pass 6 percent in June.
Meanwhile, Zhang suggested that the government should increase its gold reserves.
By the end of last year, China ranked sixth globally in gold reserves, with 1,054 tons. It lags far behind the US, the country with the largest reserves, with 8,134 tons.
"China's reserves are small. They need to be increased appropriately," Zhang said.
China had more than $2.84 trillion in foreign exchange reserves by 2010, but only 1.7 percent were invested in gold.
"The government needs to expand its share of gold in the foreign exchange reserves to reduce vulnerability to dollar depreciation. The reserve should be at least 5,000 tons," Zhong said.
China's gold output, mostly put into the reserves, was the world's largest for the four years up to 2010.
The output in 2010 grew by 8.6 percent year-on-year to a record high of 341 tons.
"China's gold reserves are, probably, far more than the released figure," Zhong said.
In the first quarter, China overtook India to become the largest market for private gold sales.
From January to March, Chinese consumers and investors bought 93.5 tons of gold in the form of coins, bars and medallions, more than double the amount of last year, and a 55 percent jump from the previous quarter, according to the World Gold Council.
"China overtaking India as the largest buyer of gold products on an annual basis is just a matter of time. The average gold holding in China is only one fourth of the global level, and China's per capita individual income is much higher than India's," Zhang said.
He said he believes "the gold price hike will be maintained", for the foreseeable future thanks to the European debt crisis and rising calls for restructuring the global currency system. "Gold prices could rocket if the debt crisis spreads further," he said.
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Source:China Daily
Weekly review
Meanwhile, Zhang suggested that the government should increase its gold reserves.
By the end of last year, China ranked sixth globally in gold reserves, with 1,054 tons. It lags far behind the US, the country with the largest reserves, with 8,134 tons.
"China's reserves are small. They need to be increased appropriately," Zhang said.
China had more than $2.84 trillion in foreign exchange reserves by 2010, but only 1.7 percent were invested in gold.
"The government needs to expand its share of gold in the foreign exchange reserves to reduce vulnerability to dollar depreciation. The reserve should be at least 5,000 tons," Zhong said.
China's gold output, mostly put into the reserves, was the world's largest for the four years up to 2010.
The output in 2010 grew by 8.6 percent year-on-year to a record high of 341 tons.
"China's gold reserves are, probably, far more than the released figure," Zhong said.
In the first quarter, China overtook India to become the largest market for private gold sales.
From January to March, Chinese consumers and investors bought 93.5 tons of gold in the form of coins, bars and medallions, more than double the amount of last year, and a 55 percent jump from the previous quarter, according to the World Gold Council.
"China overtaking India as the largest buyer of gold products on an annual basis is just a matter of time. The average gold holding in China is only one fourth of the global level, and China's per capita individual income is much higher than India's," Zhang said.
He said he believes "the gold price hike will be maintained", for the foreseeable future thanks to the European debt crisis and rising calls for restructuring the global currency system. "Gold prices could rocket if the debt crisis spreads further," he said.
1 2
Source:China Daily
Weekly review
