Gold consumption in China to reduce gradually from 2014

Gold consumption in China to reduce gradually from 2014

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In 2013, the consumption of gold in China is expected to increase to over 1,000 tons, despite the fact that the trend is not sustainable and will most likely see a decline as of 2014. China is considered to be the biggest producer of gold in the world and the country’s gold output is expected to rise about 7 percent, to a record high of 430 tons.

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It has been noticed that the demand for gold in China in the first six months of 2013 has increased by more than half as dropping prices of the precious metals attracted many buyers. This even reinforced expectations that China will surpass India as the top consumer in 2013. In 2012, the consumption of gold in China was 832.18 tonnes.

In recent times, demand growth has outpaced production significantly, which resulted in imports from Hong Kong to increase and linger at over 100 tonnes for five straight months until September 2013.

However, in 2013, the consumption was abnormal and a sharp decrease in prices in April 2013 resulted in buying frenzy. It is expected that the demand will gradually cool down and current consumption of more than 1,000 tonnes will fall to normal levels.

Photo Credits: Telegraph