BEIJING, April 17 World gold prices will pick up
over time as a global economic recovery gains traction, a senior
official of China's $482-billion sovereign wealth fund said on
Gold has fallen about 18 percent so far this year
after an unbroken 12-year string of gains. It rebounded to
$1,381.80 an ounce on Wednesday after tumbling to $1,321.35 the
"Gold is still the most important (component of) reserves of
the economies. The fast growth of emerging market economies
means that the supply of gold will not be that much," said Jin
Liqun, chairman of the supervisory board of China Investment
"Gold prices should go up over the long-term," he said on
Wednesday on the sidelines of a business conference, but did not
give an exact timeline.
He said the current decline in gold prices would moderate if
the U.S. economy recovered this year and debt distress in the
euro zone economies eased.
CIC's investment exposure to gold was limited, Jin said.
"We invest in gold as part of investment instruments, but
not on a big scale," he said. "We have been doing well on this
The company's 2011 annual report showed it had no gold
investment in its portfolios.
CIC is looking to invest in European companies where there
is access to high-level technologies, Jin said.
"European countries have very good technology. There have
well-managed companies that are having difficulties because of
macroeconomic problems," he said.
CIC would also continue to explore investment opportunities
in neighbouring countries in Asia and in Japan despite tension
between Beijing and Tokyo, he said.
CIC, which manages a slice of China's foreign exchange
reserves -- the world's largest at $3.44 trillion -- still has
some cash at its disposal from its last government injection of
cash in 2011, Jin said.
"We are not rushing to get more money at this moment, but
eventually when we invest all of the resources. I do believe CIC
will need new money in the future," he said, when asked if the
sovereign wealth fund would request a new capital injection.
(Reporting by Kevin Yao; Editing by Jonathan Standing and