China Gold Consumption Surpasses India For the First Time In 2013 – WGC
By Esther Tanquintic-Misa | February 19, 2014 3:40 PM EST
Gold prices to swing next week ahead of US Federal Reserve QE taper decision (Reuters).
By points basis, China's consumer demand for the yellow metal gold was up at 32 percent in 2013, compared with the 13 percent of India.
China managing to overshoot India in the gold consumption race did not happen by chance.
"It is not just an aberration. Going ahead, China's demand for gold is expected to exceed India's in the coming years," PR Somasundaram, WGC managing director (India), said.
For 2014, the WGC forecast China's demand for gold will hit from 1,000 tons to 1,100 tons while in India may be just 900 tons to 1,000 tons.
"China has put in infrastructure that was in favour of gold, India has turned away from it," Somasundaram P R, WGC managing director, India, told PTI.
Even as overseas gold prices slumped to its biggest annual drop since 1981, the weaker rupee coupled with stringent supply restrictions failed to rouse up India's weak gold demand.
"Indian consumers therefore missed the opportunity to buy gold at lower levels during the second half of the year unlike in many other markets," the report pointed out. This does not mean however that India will no longer crave for its gold fix.
"India's love affair with gold is a culmination of several factors and it will continue. This is also because apart from the jewellery demand, the investment demand continues to remain strong," Somasundaram said.
The WGC noted India's gold imports between July and October dropped 63 percent from a year ago when the government started implementing measures to limit gold imports.
"However, the Indian gold market is fed by a number of alternative sources, including recycled gold, domestic production and unofficial imports," the report said.
To report problems or to leave feedback about this article, e-mail:
To contact the editor, e-mail:
Most Popular Slideshows
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Chris Martin Getting Serious With Jennifer Lawrence, Actress Joining Coldplay Tour [PHOTOS]
Join the Conversation
- Europe, US Next on ISIS’ Hit List, Says Saudi King; Seized ISIS Laptop Reveals Terrifying Bio-Warfare Plans
- Ukraine Crisis: Putin Dangles Nuclear War Threat, US Senators Advise Sending Defensive Weapons
- Australia Races Against Potential Genocide In Iraq
- James Foley Is A Spy – Jihadi Recruiter Reveals
- Australia's Renewable Energy Industry Braces for Removal of Support
- Apple iPhone 6 Actual Release Date after September 9 Confirmed 128GB Variant with New Resolution
- Moto G2 Release Roundup: Specs, Pricing, and Release Date Details
- PlayStation 4 Killing Xbox One Costing Microsoft Millions But It's Fine
- Google Chrome 64-bit for Windows 8 and Window 7 with Mac Beta Available
- Apple iOS 8 vs Android 5.0 L: OS Wars Puts Android to Lower while Apple to Higher
- Nexus 6 on Release Date Confirmed with Phablet-Size Display as FCC Filing Hints of 5.9-Inch Screen
- Google Can Kill Samsung with Android KitKat and Android One: Here's How