China Gold Production

As the U.S. economy continues to writhe in the clutches of recession, sustainable growth — both in corporate profits and economic output — seems distant.

In China, however, near-term recovery is a reality.

Real estate, automobile, and industrial sales have all rebounded, driving stocks on the Shanghai exchange up as much as 85% for the year.

In fact, the acceleration of China's comeback has been so strong the World Bank recently increased its estimate for the country's GDP growth this year from 6.5% to 7.2%.

All of this makes China an alluring prospect for investors again. Especially when you consider. . .

China's Gold Investment Potential

In the mid-1990s, the Chinese government revolutionized the country's gold industry.

Lawmakers began reforms that encouraged small gold producers to consolidate and, more importantly, allowed foreign companies to form joint ventures with Chinese companies.

It was a brilliant move.

Foreign companies — mainly from the United States and Canada — brought modern mineral exploration techniques, management practices, financial controls, and industrial, environmental and safety standards.

The single most important asset foreign companies brought the Chinese gold industry, however, was money.

As foreign investment capital gushed into China, the number of projects skyrocketed, leading to new gold discoveries.

As a result, China's total gold production has steadily increased 7.4% annually and 66.9% since 1999. And in 2007, China became the world's largest gold producer, overtaking South Africa, which held the title as top gold producer for over 100 years.