Author: Paul Ploumis20 Jun 2014 Last updated at 08:18:50 GMT
BEIJING (Scrap Monster):According to China Gold Association, the interest in gold bar investment is likely to remain soft in the country during this year. Also, the country’s overall gold demand will likely remain flat to slightly lower in 2014 when compared with the previous year.
The Association noted that the private sector gold demand in China will remain muted in 2014. The Chinese demand had peaked during 2013, soaring 41% to 1,176 tonnes. The country had surpassed India to become the world’s largest gold consumer during the year. According to figures released by the Association, the gold demand in China stood at 323 tonnes during the first quarter of 2014, clearly suggesting a slowdown in demand growth.
The demand for gold jewelry continues to remain strong, said Xin Song, President, China Gold Association. He forecast the overall gold demand in the country to remain at around last year’s levels or slightly lower than those. The country’s gold jewelry demand surged higher by 30% during Q1 2014.
However, Xin noted that retail interest in gold bar investment is seen soft on concerns of further weakness in gold prices. The bullion prices are almost 30% down from its all-time peak in September 2011. The overall bar demand plunged by 44% during the first quarter of the year.