Apparently, the demand for gold in China in the current 2014 will be more moderate after last year's incredible growth of 32%. However, one Chinese tradition will continue to support the demand for yellow precious metal, Russian Jewelry Network reports with reference to the portal www.Gold.ru.
In the past, 2013, Chinese investors and jewelry buyers sought to extract the maximum profit from buying gold at record low prices. Thus, by the end of the year, 1,035 tons were purchased, which allowed China to overtake India in terms of consumption of precious metals, according to the World Gold Council (WGC).
Over the past ten years, the number of weddings has grown in China by 60%, reaching a mark of 13.2 million per year. Chinese families bought 669 tons of jewelry last year, of which 40% were related to weddings, WGC said. "The yellow color of gold means wealth and abundance that never pass," said Albert Cheng, WGC representative in China.
Parents of the newlyweds usually give one set of jewelry, each of which consists of three items: a necklace, a pendant and a bracelet. The process of donating jewelry from gold symbolizes the transfer of blessings from the older generation to the younger. Special importance is attached to traditions in rural areas and small towns, where traditions are observed more strongly than in large megacities.
As for India, there gold plays an even greater role during weddings. Gold is a part of the culture of this country. However, last year the country imposed restrictions on the import of gold, which led to a significant deficit of the yellow precious metal.
During the season of weddings and festivals in the second half of 2013, gold deficit in India was so high that jewelers demanded a surcharge of $ 170 to the price of the London fixing. Jewelers had to look for different non-standard ways of importing gold into the country, just to satisfy the huge demand for precious metals.