Mumbai: Chinese demand for gold is expected to grow by 22.72 percent to reach to about 1,350 tonne by 2017 on rising real incomes, a deepening pool of private savings and rapid urbanisation across the country, says a report by the World Gold Council.
"In 2013, China overtook India in terms of demand to 1,100 tonne. With the newly emerging middle class, growing real incomes, a deepening pool of private savings and rapid urbanisation across China indicate that the outlook for gold jewellery and investment demand in the next four years will remain robust," WGC India Managing Director Somasundaram PR said.
China's overall gold demand is likely to reach to 1,350 tonne in the next three years, he added.
He further stated that China has become the world's number one jewellery market, nearly trebling in size over the past decade - at 669 tonne in 2013, it accounts for 30 percent of global jewellery demand.
"Our estimates suggest that demand will continue to grow and reach 780 tonne by 2017. The retail sector, which has become organised, has now over 1,00,000 retail outlets selling 24 karat gold and thousands of manufacturers nationwide," he added quoting the WGC report 'China's gold market: progress and prospects'.
The report also revealed that consumer sentiment toward gold is unwavering - although 40 percent of jewellery consumption relates to weddings, the appetite for gold in China goes beyond occasions and gift giving.
"About 80 percent of consumers surveyed planned to maintain or increase their spending on 24-carat gold jewellery over the next 12 months believing that gold will hold its long-term value and because they expect to have a higher level of disposable income," it said.
The electronics demand in China for gold is likely to see small gains in the next four years - industrial demand has grown with electronics being the key driver (climbing to 66 tonne in 2013 from 16 tonne in 2003).
China is also the leading market for gold related patents such as the use of nano-gold in health care.
China has gone from being a minor producer to the world's largest source of mined gold - in the past decade as production has doubled to 437 tonne from 217 tonne.
India's gold demand stood at 975 tonne in 2013.
First Published: Tuesday, April 15, 2014, 22:02