• Gold Jewelry Demand :: China to Become Top Gold Buyer in 2012

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    According to the World Gold Council, China will overtake India as the top gold buying nation in the world in 2012. China has already been outpacing India for the previous 3 quarters.

     

    Major economic trends within India and China are large factors in this trend, reports USA Today. India experienced a high rate of inflation in 2011 which left consumers with less dispensable income. Also the rupee has been weak of late, so gold has been comparatively more expensive for Indian consumers.

     

    In China, a lack of other positive investment options has led to greater demand for gold. The Shanghai Composite Index is down 20% over the last year, and the Chinese government has put in place curbs to prevent a bubble in their housing market. This has led to riskier investments and lower gains in these major investment options.

     


    According to Economic Times, China and India currently account for half of the global demand for gold. The World Gold Council annual report predicts China’s portion of this demand will continue to grow in 2012.