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Chinese Gold Demand Sags 25% in 2014

iconFeb 6, 2015 23:46
Source:SMM
The Chinese gold consumption declined 24.7% in 2014, as gold prices recovered from the record lows touched in 2013.

 Author: Paul Ploumis 06 Feb 2015 Last updated at 06:41:59 GMT

 BEIJING (Scrap Monster): The Chinese gold consumption declined 24.7% in 2014, as gold prices recovered from the record lows touched in 2013. According to China Gold Association, rebounding gold prices dented prospects of increased demand for gold in the country during the year.
 
The consumption of gold by China during the entire year 2014 totaled 886.10 metric tons, significantly lower by almost one-fourth when compared with the record gold consumption of 1,176.40 tons in 2013. The Chinese demand for gold bars plunged by 59% over the previous year to 155.10 tons. The demand for gold coins too fell sharply by 49% to 12.8 tons. Meanwhile, gold usage in jewelry declined nearly 7% to 667.1 tons.
 
The country had witnessed rampant gold purchases during 2013 when prices of the yellow metal had crashed almost 28%. Despite recovering from the lows, gold’s failure to make a significant up move throughout the year 2014 has suppressed fresh investment demand. Though prices remained almost stable in 2014, experts were seen unwilling to rule out further cut in gold prices. A good majority of investment houses too supported the view that gold’s upside may remain limited.
 
The anti-graft campaign by the Chinese administration has resulted in reduced purchases of bars and coins, along with other luxury-gift items. The Association believes that despite the huge fall in gold demand during 2014, the country’s longer term demand prospects still look bright. The drastic fall in demand in 2014 is partly attributed to the extraordinary gold purchases during the second half of 2013, triggered by squashed gold prices.
 
The statement released by the China Gold Association also notes that the country continued to remain as the world’s largest producer of gold in 2014. The Chinese gold production during the year climbed higher by 5.5% to 452 tonnes.
 
China gold demand

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