Last year the Chinese consumer supported the price of gold from falling further and the country has now surpassed India as the world’s largest country for gold consumption. Gold production and consumption is continuing at full speed this year in China.
China has a leading place in the world’s gold sector. China ranked second in the world at the end of 2012 for identified gold reserves with 8196 tons. Gold production reached 428 tons in 2013. That was the seventh straight year for China to be first in production. Consumption has also been growing fast. Gold jewelery sales volume stood at 400 billion yuan in 2013.
"Judging from the quality of growth and the market potential for gold in China for the past few years, there is no surprise that China should become a leading country for gold," said Song Xin, President of China Gold Association.
China’s gold reserves have trailed those of its international counterpart despite the huge consumption. China’s gold reserves are now at 1054 tons. That accounts for only 1.1% of the country’s foreign reserve. In contrast, gold accounts for over 65% of foreign reserves in countries such as the U.S., Germany and Italy.
Source: Xinhua
