Indian families during their marriages of their daughters India hold the ritual of presenting and giving gold ornaments to their daughter. It even being given as a dowry demanded from the bride groom family. We have entered in to the new decade where everything is converted and changed into the world of high speed the rituals of giving gold
By the time I am writing this article many of my readers must have read the present situation of the Indian gold market. We all know why gold is picking up but what we all don’t know who is making its future of gold .

If we look for the future demand and the movement of gold prices we can only find its getting disappeared from its yellow color to paper color. The uncertain condition of the world economic have changed the outlook of the gold much before but now its seems that the new outlook will be the future nightmare for retail class of people across the world. Global demand for bullion during the second quarter increased by 36% to 1,050 tonnes.
The investments in gold have taken new shapes and direction. A quick look at some astronomy figures of world gold position:

Investment in gold more than doubled in the three months ended June 30% compared to last year.

• Net retail investment rose by 29%.

• Investments in ETF the new form of paper gold have shooted up to 414%.

• Investors purchased 291.3 tonnes of gold in ETFs during the second quarter, the second-largest inflow to date, bringing total holdings to more than 2,000 tonnes, worth more than $81-billion (U.S.).
Among all these demand of the global gold we find that china holds yet another cap of being number 1 in gold demand and business. China represented one of the strongest retail investment markets last quarter in gold .The demand soared to 121% to 37.7 tonnes from a year earlier figure. China has asking its citizens to buy gold and hold reserves in gold rather than any other form of investment. China has been doing marketing of buying gold and ultimately increasing the demand of gold globally. In a very recent tie up China and World Gold Council entered into an agreement where china will domestic demand for gold through new investment products.

China have left no stone unturned for promoting the gold consumption among its citizens. China is using television advertising to encourage its growing middle class to buy gold as an investment. The ad campaign is a major shift from only a few years ago when the country imposed strict controls on precious metals purchases by its citizens.
The belwo chart show the annual household savings and gold composition.

China is creating the reserves of its citizens in the form of gold and indirectly making it country people more rich than any other nation in the coming decades. Since we all know that gold will be beyond $2300/ounce within a time frame of 3 years from now. In that scenario China stand at the point of advantage .
China is converting its household savings in to gold and thus pushing up the global demand of gold. According to Peking professor Michael Pettis – and despite disposable income growth of perhaps 15% annually since 2000 – consumption growth in the world's No.2 (and fastest-growing) economy "is anemic" by comparison.
Moreover absence of strength among any other asset classes and currency have led to conversion of reserves in to gold.As US economic outlook looks very unhealthy hence dollar will remain under pressure. This might force China to convert some of the reserves of US held by china to convert into gold.

In that case the price and demand of gold will be flying with an astronaut .The new generation of china is looking more active in finding investments avenues and gold is not the cup of tea of China young generation. Chinese government departments recently released an overall plan outlining the main tasks for the future healthy development of China's gold market. The Shanghai Gold Exchange and Shanghai Futures Exchange will explore ways of improving the tax policies for gold investment products and commercial banks' gold business. China is increasing the number of commercial banks that are qualified to import and export gold. New channels for physical gold supply will be established, and the foreign exchange policy for the gold market will also be improved. Chinese banks offering gold derivative products will be allowed to hedge their domestic gold positions via overseas transactions.

All these steps coming together silently reveal that China will be leader in gold demand and gold reserves. The government will not only convert its own reserves into gold but is also taking steps to make its citizens to be the most rich citizens on the global platform.