China set to beat India as world's top gold consuming country: GFMS
04 Dec 2009
Gold consumers in China are buying up more gold and the country is expected to consume 432 tonnes of gold in 2009, overtaking India as the world's top gold consumer, metals consultancy Gold Fields Mineral Services (GFMS) said on Friday.
"It looks as if it is happening this year," Philip Klapwijk, GFMS executive chairman, told a gold conference.
China's total gold demand in 2009 - for both jewellery and investment - were expected to reach 432 tonnes, compared with 422 tonnes from India, excluding central bank purchases.
The Reserve Bank of India (RBI) bought 200 tonnes of gold from the International Monetary Fund in November, which also helped push gold prices to record levels.
The RBI purchase of gold also strengthened speculation that central banks of other emerging economies too will follow suit. China, moreover, is sitting on the world's largest foreign exchange reserves of $2.27 trillion.
India's current year consumption of gold is estimated to be around 422 tonnes. India accounted for more than 20 per cent of global gold consumption last year.
