Year on year gains despite changing market
China’s appetite for gold continues to see consumption rise, with Q1 2014 figures showing a 0.76% year on year gain, with demand totaling 322.9 tonnes, according to a newly released report from the China Gold Association.
Demand may be up, but the products of demand are changing, with jewelry seeing massive surges and bars a drop.
Chinese consumption of gold jewelry has seen a surge in excess of 30% from last year to 232.53 tonnes.
Jewelry’s gain has been the humble gold bar’s loss. Gold bars have experienced a sharp decline, partly due to new regulations designed to reduce gifts by government officials – with gold bars having traditionally been used as gifts.
The World Gold Council have forecast a 20% to 25% growth in Chinese gold demand over the next few years, so a “mere” 0.76% gain may be a temporary pause in an otherwise voracious appetite for the yellow metal.
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