Monday, 15th January 2007 (3374 views)

Demand for gold jewellery and adornments in China is booming as people's incomes rise and the country's economy grows.

According to one top gold company China is now on track to overtake India as the world's largest consumer of gold jewellery.

US-based Gold Central says Chinese demand for gold jewellery rose by 13 per cent in the first quarter of 2006, with sales over the year increasing by more than 20 per cent.

And it expects the country's consumption of gold jewellery to continue growing quickly this year as the economy expands and people's living standards rise as a result of wage increases.

Indeed China's demand for gold jewellery is expected to intensify over the coming month ahead of the Lunar New Year celebrations.

Young Chinese women in particular are spending more money in gold jewellery as they see their incomes rise and are able to afford more luxuries. They are particularly fond of white gold.

Figures from Numis Securities show that in 2006 China consumed over 300 tonnes of gold, of which 214.4 tonnes went to the jewellery industry.

 

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