Investors looking to increase their gold profits may want to make money transfers after hearing that China has seen a surge in terms of generating demand for the precious metal.
The World Gold Council’s latest Gold Demand Trends revealed the country remains at the “cultural heartland” of gold, behind the frontrunner India.
In 2011, jewellery made from the metal accounted for 500 tonnes (t) worth of India’s 933.4t demand, while 25 per cent of the total bar and coin interest worldwide came from the nation.
China saw annual demand rise 20 per cent year-on-year, with the largest increase noted in investment, which leaped 69 per cent.
In the second half of 2011, the country was the leading single jewellery market worldwide.
Marcus Grubb, managing director of investment at the World Gold Council, commented: “It is likely that China will emerge as the largest gold market in the world for the first time in 2012.”
Combined, India and China generated 55 per cent of global jewellery demand and 49 per cent of total interest in the precious metal in 2011.
“What we can see from these 2011 figures is that there were two main factors driving the results: Asian growth and optimism on the one hand and western desire to protect assets against uncertainty on the other,” Mr Grubb remarked.
Global demand for gold rose to 4,067t last year, which is an estimated value of $205.5 billion (£130 billion) and marked the highest tonnage level since 1997.
The main reason for this increase was the investment sector, where it was noted annual demand was up 1,640.7t on the previous record set in 2010.