Friday, 7 February 2014
China Beats India to Become World’s Largest Gold Consumer in 2013
2013 saw China beating India to claim the spot of the largest consumer of gold globally. The country gained the number one spot supported by factors such as high volumes of gold jewelry purchases, gold bullion purchases, and investments in gold panda coins, as reported by the Securities Times.
According to data available, in 2013 the total gold demand in China was around 1189.8 metric tons. This marks a 32% spike in the YoY demand for gold. Interestingly, the 2013 gold demand is five times more than that what it stood at in 2003, as per data collated by Thomson Reuters. The fact that gold prices slumped in 2013 also stimulated the demand for gold among Chinese consumers.
At the same time, the markets of Europe and North America haven’t been most optimistic for gold. Here, the demand for gold has stabilized post a boom that lasted nearly 12 years, Financial Times reported. And, gold holdings have witnessed a decrease of nearly 880 tons given that the economy is warming up and there has been a weakening in expectations of inflation.
Typically, gold that comes from the European markets is melted into smaller bullion pieces in Switzerland, and is then transported into the Asian market.
According to market reports available, the consumption of gold in the Indian market saw a 5% spike in 2013. The Indian market reportedly consumed nearly 987.2 tons of gold in 2013. However, the implementation of new restriction policies and import tariffs in the same year meant that the country saw a slightly suppressed demand for gold.