Gold consumption exceeds 1,000 tons in China in 2013

According to the latest statistics released by China Gold Association, China's gold consumption for the first time exceeded 1,000 tons to reach 1,176.4 tons in 2013, a year on year increase of 41.4 percent. The gold consumption in 2012 was 832.2 tons, a year on year increase of 9.4 percent.

The statistics show although the gold output and consumption in China have kept setting new records, the gap between the consumption and output has grown wider and wider.

In 2007, the total gold output of gold was 270.5 tons and the consumption 327.6 tons. While in 2013, the total gold output was 428.2 tons, and the consumption 1,176.4 tons, ranking first in the world for seven consecutive years.

In 2013, a total of 11,614.5 tons of gold products were traded on the Shanghai Gold Exchange, with a turnover of 3.2 trillion yuan. And a total of 40.2 million gold future contracts were traded on the Shanghai Futures Exchange, with a turnover of 1.1 trillion yuan.

Xiao Lei, a senior researcher of the gold market, explained that the surge of demand in gold jewelries and gold bars had much to do with the buying spree in China after the dropping of gold price. The sales growth in gold jewelries and gold bars suggested a major change in Chinese people's demand.

"The jewelry consumption still has plenty of room for growth. Right now, the average possession of gold in China is less than one fifth of the global average and less than one tenth of the average of developed countries. Like the automobile consumption in China ten years ago, the growth of the gold jewelry consumption has just begun," he said.