Gold jewellery demand soars in China

Propelled by strong demand, China’s gold jewellery fabrication in 2011 grew 14.6 percent, reaching a record high of 496 tonnes, according to Gold Survey 2012 by London-based metals consultancy GFMS Ltd. The robust demand is expected to continue in 2012, Zee News reported.

"The rate of expansion in gold demand across the Asian giant has been extraordinary, with annual growth over the last decade averaging 10 percent year-on-year," said GFMS, noting that the growth was "all the more remarkable when it comes in an environment of rising and often volatile prices.

Commenting on the outlook, the consultancy under Thomson Reuters Corp said that the country’s jewellery retail and investment markets are expected to drive growth.

"Retail sales ahead and post the Chinese New Year period have again been substantial, mirroring demand the previous year," the report stated. "Continued economic growth and a desire to own gold as an alternative asset are likely to propel Chinese jewellery fabrication to another record this year.”

China’s upbeat market was in stark contrast to the gold jewellery sector in other regions.  The figure in India dropped 3.1 percent to 701 tonnes, compared with a record high of 723 tonnes in 2010.

The global jewellery fabrication dropped by 2.2 percent in 2011 to 1,973 tonnes.

Tag: Jewellery | Jewellery Retail | Gold Jewellery | Gold Investment | China | India

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