China Gold consumption tops 1000 tons for first time in 2013

Beijing (Feb 11)   China's gold consumption topped 1000 tons on surging demand in 2013, according to China Gold Association.

Of the 1176.40 tons which represents an increase of 41.36%--716.50 tons accounted for gold jewelry (an increase of 42.52%), 375.73 tons of gold bullion, an increase of 56.57%, 25.03 tons of gold coins (a decrease of 1.07%), industrial gold 48.74 tons (decline of 0.23%), gold for other uses accounted for 10.40 tons (decline of 32.03%).

China's gold consumption figures do not include demand from the central bank, whose gold reserves stand at 33.89 million ounces (1,054 tonnes), unchanged since April 2009, according to the latest figures on the central bank's website.

With prices remaining at $1200 levels, Chinese demand for gold will continue to rise. China has retained its position as world's largest gold producer for seventh straight year with an output of 428.163 tons.

With China consumption crossing 1000 tons, it has outperformed India the top consumer of gold for the first time. India's gold consumption is estimated to have fallen sharply due to increase in import duty to 10% and several curbs put in place to discourage consumption of the yellow metal. However, the World Gold Council has estimated gold demand to be in the range of 950-1000 tons of which 700 tons constitute official imports while 200-250 tons could constitute smuggled gold, according to news reports.

(Source: Commodity Online)