NEW YORK (Commodity Online): After trumping down India to become the biggest gold importer in the last quarter of 2011, China is poised to overtake India to become the biggest gold market in 2012, as per the World Gold Council (WGC).
"It is likely that China will emerge as the largest gold market in the world for the first time in 2012”, The Guardian quotes Marcus Grubb, WGC's managing director for investment
In Q4 2011, China had become the largest gold importer for the quarter, importing 190.6 tonnes of gold compared to 173 tonnes of Indian imports.
On the fall in Indian demand in Q4, WGC states that “ the rapid rise and fall in the Rupee and the resulting domestic gold price swings had a strong impact on gold buying with both jewellery and investment demand in H2 lower by around 33%”
But despite a drop in Indian gold import, the WGC believes that India will be remain a key player in the gold market. “India's importance in the gold market will not diminish, even if demand softens. Not only is India a key player in the global gold market, but the domestic drivers of gold demand are largely independent of outside forces, firmly supporting gold's diversified investment base”, the report said
