China pips India in gold consumption

 

 BANGALORE: China has overtaken India as the world's largest gold consumer, according to a World Gold Council report released on Tuesday. While Chinese consumers lapped up 1,066 tonnes of gold products in 2013, their Indian counterparts bought 975 tonnes, up 13% from 2012, the report said.

India's demand came down to 974.8 tonnes following wide-scale curbs imposed by the government to tame hunger for the precious metal, according to WGC's 'Gold Demand Trend 2013'.

Despite the massive increase in customs duty and many restrictions that the Centre put on jewellery imports, India consumed more gold than 2012, when it stood at 864 tonnes.

In China, the total demand stood at 806.8 tonnes in 2012. "While China has put in infrastructure that was in favour of gold, India has turned away from it. In 2014, we are not seeing any role reversal," WGC managing director, India, Somasundaram P R said.

He said, in 2014 the demand in China is estimated at 1,000-1,100 tonnes while in India it is estimated at 900-1,000 tonnes. The demand for the precious metal picked up throughout the fourth quarter as attention turned to the Chinese New Year, a traditional occasion for gift-giving, the report said.

Indications are that demand for consumer gold items has been healthy during the January Chinese New Year celebrations, it said.

 

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