China is competing with India to have the world’s biggest gold market in 2012 as it slowly emerges as the new superpower in the international gold industry.
The World Gold Council annual report in 2011 stated that the amount of gold China bought in 2011 rose 20 percent to 711 metric tons, while India purchased 933 metric tons. The council said that it’s likely that China will emerge” as the world’s largest gold market for the first time in 2012 as it has already moved into top place on a quarterly basis. China has already become the world’s largest market for gold for the second half of 2011.
The rise of inflation and the weakening of the rupee, which made gold more expensive, could be the reasons for India losing the top spot in the gold market while rising incomes and a surging demand for luxury goods are the reasons why China is well on its way.
Source: Luxury Launches