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​China passes India as world’s leading gold consumer

Published time: January 24, 2014 16:35
Reuters / Bobby Yip

Reuters / Bobby Yip

China has outpaced India in terms of gold consumption in 2013, with people there increasingly investing in the precious metal, according to the Thomson Reuters GFMS Gold Survey.

The influential report says Chinese demand increased by 32 percent within a year, reaching 1,189.8 tons in 2013, which marks a fivefold increase since 2003, says the Financial Times.

The increase was mainly driven by purchases of Panda coins, gold bars and jewellery.

The lion’s share of sales came from high purity 24 carat gold products bought mostly for investment reasons rather than as jewelry. The same reason led the 'kilobars' and smaller weight investments, setting a new record of 366 tones, which was 47 percent more than in 2012. As for gold coins, only Turkey minted more than Beijing last year.

Gold has always been popular culturally in China, and now it’s increasingly seen as an asset class for individuals,” Andrew Leyland, the manager of precious metals demand at GFMS said. “Greater wealth and disposable incomes created pent-up demand when prices were high, so when they dropped there was this phenomenal surge in buying.

However, the gold price is still vulnerable and faces a risk of further falls. Few analysts predict prices will recover this year, while the investors’ appetite for the precious metal remains weak.

Thomson Reuters GFMS forecasts an average price of $1,225 for a troy ounce for 2014, which is nearly $20 below the current level. Physical demand remains sustainable, “but without a repeat of the bargain hunting surge”.

Besides becoming the biggest gold consumer, China has also become its world’s major gold producer with total estimated output at 437.3 tons, which is more than 9 percent of the global supply last year.

Comments (5)

 

Asclepius 26.01.2014 03:33

When the greedy demons go back to jew heaven, the first metal to melt upon their flesh, shall be the gold.

 

Pan_a_sonic 25.01.2014 18:52

India still has the largest gold ownership in the world, something like 15000 tons in private hands.

 

Iqbal Halani 25.01.2014 10:50

Its stupid, hoarding yellow metal, the Indian/Chinese Governments should make holographic gold bars that can be exchanged for real ones, to be kept as assets. And sell all the physical gold to turn it into cement roads,state housing, dams, PVC permanent water pipes,free aquaponic kits,etc,etc.

View all comments (5)
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