China Looks to Exceed India as Largest Gold Market
Demand for gold in China looks to rise 30% in 2012 due to growing wealth in demand for luxury goods, surpassing India as the largest gold market in the world.
Chinese gold demand was 770 tons in 2011, however China is now on pace to exceed 1,000 tons in 2012. India’s demand of 933 tons in 2011 is expected to fall slightly to around 850 tons in 2012 due to poorer economic conditions.
China is also the world’s largest producer of gold. While the price of gold has falled considerably in recent months due to EuroZone instability and their growing debt crisis, this increased demand looks to help stall the price drop, and may even boost it. Global deman for gold in Q1 2012 was 1,098 tons, which is down 4.6%.
The price of gold fell to $1,548 today, the lowest level since December 2011.
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