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China poised to be the world largest gold market
By Hu Xiaocen |
May 17, 2012, Thursday
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Online Edition
Online Edition
CHINA'S demand for gold surpassed India's in the first quarter, making the country the biggest gold market in the world, said the World Gold Council today in its gold demand report.
China has seen a continuing economic growth although with the pace slowing down. "Nonetheless as we previously forecast it is likely China will become the largest source of demand for gold in 2012," Marcus Grubb, managing director of investment at the council said in the report.
Demand for the bullion in China remained robust in the first three months, whilst global demand fell 5 percent to 1,097.6 tons from a year earlier on high gold prices.
China's investment and jewelry demand grew 10 percent to 255.2 tons in the first quarter year-on-year. Chinese investors' need for wealth preservation amidst inflation concerns drove up the investment demand for the metal by 13 percent. Jewelry demand also increased significantly to 156.6 tons, accounting for 30 percent of global jewelry demand, making China the largest jewelry market for the third consecutive quarter, the report said.
Demand in India fell 19 percent in the first quarter on new and higher taxes, as well as weaker rupee. And investment demand plunged 46 percent. According to the report, it already sees a rebound in the nation's demand for jewelry after the withdrawal of the new tax in May.
The council said earlier this year that China may overtake India as the world's biggest gold market for the first time in 2012.
The report also noticed the jump in gold price. The average price of the bullion rose 22 percent from a year earlier to US$1,690.57 per ounce in the first quarter.
China has seen a continuing economic growth although with the pace slowing down. "Nonetheless as we previously forecast it is likely China will become the largest source of demand for gold in 2012," Marcus Grubb, managing director of investment at the council said in the report.
Demand for the bullion in China remained robust in the first three months, whilst global demand fell 5 percent to 1,097.6 tons from a year earlier on high gold prices.
China's investment and jewelry demand grew 10 percent to 255.2 tons in the first quarter year-on-year. Chinese investors' need for wealth preservation amidst inflation concerns drove up the investment demand for the metal by 13 percent. Jewelry demand also increased significantly to 156.6 tons, accounting for 30 percent of global jewelry demand, making China the largest jewelry market for the third consecutive quarter, the report said.
Demand in India fell 19 percent in the first quarter on new and higher taxes, as well as weaker rupee. And investment demand plunged 46 percent. According to the report, it already sees a rebound in the nation's demand for jewelry after the withdrawal of the new tax in May.
The council said earlier this year that China may overtake India as the world's biggest gold market for the first time in 2012.
The report also noticed the jump in gold price. The average price of the bullion rose 22 percent from a year earlier to US$1,690.57 per ounce in the first quarter.
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