Expanding the demand for gold is of strategic significance after the gold market of China has been opened. Private collection of gold can decrease the risk of national gold reserve, and expanding residential gold demand is useful for the steady economical development and avoids finance adventure, because the nation can buy the gold previously reserved by residents to increase its gold reserve in case of finance crisis. Its efficiency had been proved by the South-East Asia crisis. Based on the investigation data supplied by Shanghai residents, and with the help of econometrics, the paper generalized the present status of private gold consume and investment demand, and analyzed the reasons for insufficient demand so as to find out a new way to develop gold market, promote product innovation and supply a reference for decisionmaking.
