China’s Gold Demand Dropped 25% in 2014

February 6, 2015 Share Print 1

China’s gold consumption fell 25 percent in 2014 as the price collapse that triggered an “extraordinary” surge in buying the year before wasn’t repeated, the China Gold Association said.

Consumption declined to 886.1 metric tons from a record 1,176.4 tons in 2013, the Beijing-based group said in a statement on Friday. Demand for bars sank 59 percent, coin purchases slumped 49 percent and gold use in jewelry contracted 6.9 percent.

Gold fell 1.4 percent last year amid a rally in stock markets that damped interest in the metal as an investment and as an anti-graft drive in China hurt demand for luxury goods. Buying in China surged 41 percent in 2013, spurred by a 28 percent slump in prices.

“The precipitous drop in prices in 2013 led to an increase in demand of extraordinary proportions,” the association said in the statement on its website. “The relatively stable price in 2014 suppressed investment demand.”

via SOURCE

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.