China Gold demand may hit landmark 1,000 tons this year
China's gold consumption jumped more than 36% to 456.2 tonnes in the four months this year and total demand this year is likely to be in the range of 900 to 1,000 tonnes, CGA said.
India's tougher anti-gold measures might help China to overtake it as world's largest gold consumer this year, China Gold Association said.
According to a top official of the CGA, conditions are favorable for China this year as China made investing easier by launching its first two domestic exchange-traded products backed by the metal this month while India trying to discourage people from buying gold.
CGA sees Chinese gold demand to climb this year as people are getting wealthier and investment choices are limited.
China witnessed some frenzied buying following gold’s rout in April as consumption reached about 137 metric tonnes during that period.
Consumption jumped more than 36% to 456.2 tonnes in the four months this year and total demand this year is likely to be in the range of 900 to 1,000 tonnes, CGA said.
China’s domestic consumption was 776.1 tonnes last year, compared with 864.2 tonnes in India.
China's per capita gold holdings are little more than 5g, compared with the average 20g in developed countries, so there’s huge potential as long as the economy is growing, CGA added.