It seems that overtaking South Africa and becoming the world leader in gold production, China is preparing to take the leading position in terms of consumption of yellow metal and to shift from this position to India, which is experiencing a sharp decline in gold imports due to restrictions imposed by the government, analysts say.
ETF Securities Ltd. (ETFS) said that the import of gold to China is growing at a record pace. According to some reports, from the beginning of this year to September, China imported 856 tons of gold, and if these rates continue, then by the end of the year, gold imports will surpass 1,100 tons, which will be a new record for China, Rapaport reports citing Commodity Online.
Meanwhile, gold production in China is expected to increase by 7% to 430 tons, Reuters reports citing Di Haiqing from China Gold Group Corp. China's demand for gold has increased dramatically, providing imports of gold from Hong Kong, exceeding 100 tons, for 5 consecutive months (until September 2013). However, Khaikin added that the increase in gold consumption is unsustainable, and in 2014, its indicators may return to the level of the previous year.