By Jim Sinclair
Of course, China will lead India in gold consumption.
What I find strange is an organization called a World Gold Council (WGC) still thinks Asia primarily buys gold for jewellery.
Asia buys gold as jewellery that trades by weight in grams with practically no value for artistry.
Would someone tell this Gold Council that Asia’s gold demand is from the bank owner of that gold.
That is simply their way.
Travel via Dubai and look at the gold seller stores, their clients, and get an education.
Read an article here on how China is going to outshine India in gold demand:
China May Overtake India in Gold Demand, Council Says
By Sophie Leung
July 24 (Bloomberg) — China may overtake India to become the world’s top gold consumer this year, the World Gold Council said, as the nation became the first of the major economies to rebound from the global recession.
Jewelry demand in China expanded in the first quarter while dropping in India, Marcus Grubb, a managing director at the London-based council, said today at a conference in Hong Kong. Chinese gold demand will keep rising, he said.
China’s economy grew 7.9 percent in the second quarter after a 4 trillion yuan ($586 billion) stimulus package spurred record lending and consumption. India’s gold purchases slumped 54 percent in the six months ended June after a decline in the rupee pushed up the cost of owning bullion, cooling demand from housewives and jewelers, the Bombay Bullion Association said.
“There is a possibility that China might overtake India as the world’s largest gold consumer this year,” Hou Huimin, deputy head of the China Gold Association, said by phone from Beijing today. “India’s gold consumption is reportedly dropping this year due to the financial crisis.”
Total demand from India in the first quarter fell 83 percent to 17.7 metric tons, from 107.2 tons a year earlier, according to figures from the World Gold Council. Purchases in China rose 1.8 percent to 105.2 tons from 103.3 tons. Total Chinese demand for gold was six times that of India in the first quarter, the council said in May.
Courtesy: JSMinest
