India’s famous passion for gold might be surpassed by China’s newfound fascination with the precious metal. The rising incomes in China have given numerous people the power and motivation to acquire gold, which has lead to an impressive 20 percent increase in gold consumption in the country in 2011. This translates to a whopping 769.8 metric tons sold last year.
On the other hand, India’s economic situation hasn’t been very promising due to its growing inflation and weakening rupee. As a result, the Indian gold market has dropped by 7 percent last year. This might just mean that India is involuntarily making way for China to become the new biggest gold market in the world.
Together, the two countries are currently the “cultural heartlands of gold”, as the World Gold Council puts it. India and China are responsible for a staggering 49 percent of the global demand for gold, and 55 percent of the global demand for jewelry. Given that 2012 is the Year of the Dragon, the luckiest year in the Chinese Zodiac, this might just be the year when China will become the world’s new largest gold market.