Thursday, 14th July 2005 (4348 views)

China is poised to become the world's biggest consumer of jewellery in the next five years.

A growing economy has boosted wealth considerably in the country and it is predicted that this will be reflected in the jewellery market.

India is currently the world’s biggest market, with China 293 tonnes behind.

However, Chinese jewellery consumption rose more than 11 per cent to 224 tonnes last year, according to London-based research group GFMS.

Such a rate indicates that the market may increase to as much as 600 tonnes within five years.

A buoyant mine production industry will help sustain this growth and although Indian jewellery demand continues to rise, the country may not be able to meet it with effective supply.

China has recently allowed its four main banks to sell gold bars to customers, after analyst predicted an annual rise in gold consumption of ten per cent, and prices are likely to rise accordingly.

 

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