BEIJING (Commodity Online): Chinese are not only buying diamonds nowadays, they are equally interested in Gold jewellery.

And this increased love of Chinese for gold may cause a huge rise in gold jewellery sales in China. According to market analysts, middle-class buyers in China, the second-biggest gold user, drove a 16 per cent gain in gold and Silver jewellery sales in the first nine months.

China’s economy grew 8.9 per cent in the third quarter, the fastest pace in a year, and the World Gold Council said in July that the nation may pass India as the biggest consumer. Bullion is on course for its ninth annual gain after the dollar weakened and demand for Gold as a store of value increased.

The Chinese have only started to buy gold as an investment product, and there’s huge room for this sector as the middle class grows.

China’s household savings reached 26 trillion yuan ($3.8 trillion) this year. Gold and other jewellery sales in China are forecast to reach 260 billion yuan this year, only 1 per cent of the total household savings.

Sales in India have been poor during the holiday season amid record prices and the nation’s imports will decline. Sales in India during the Diwali week peaked to 56 tonnes.

Sales in China will also be boosted by demand for wedding jewellery.

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