Chinese gold demand could hit 1000 tonnes this year - WGC
Reuters reported that China's gold demand could hit a record 1,000 tonnes this year which means it would overtake India as the world's biggest bullion consumer.
Mr Marcus Grubb MD for investment of the World Gold Council said that Chinese gold demand is likely to be in the region of 950 tonnes to 1,000 tonnes in 2013 but risks are skewed to the upside and could push demand past the upper end of that range.
Mr Grubb said that "China will probably be the world's biggest gold consumer this year for the first time on an annual basis. That will be driven by both jewellery and investment demand. Jewellery will be the biggest overall demand segment, but investment will grow fastest."
Physical deliveries from the Shanghai Gold Exchange in the first half of 2013 exceeded total deliveries for all of last year, exchange data showed, while premiums over spot prices rose above USD 20 an ounce. China's demand for gold in fabrication, which covers jewellery and other decorative and industrial uses, amounted to 590.5 tonnes last year.
Mr Grubb said that India's gold demand is likely to be at the lower end of earlier guidance at around 850 tonnes. The Indian government has moved to curb gold imports this year in a bid to cut a record trade deficit.
He forecast global central bank gold acquisitions this year at around 400 tonnes, down from a 48 year high of 532 tonnes in 2012. He described mine supply as a wild card and said scrap supply was expected to decline by 300 tonnes to 400 tonnes from 1,616 tonnes last year.
Source - Reuters