A sharp decline in the price of gold stimulated demand for gold jewelry, bullion and coins in China. Total gold consumption in China this year will exceed 1,000 tons, said a representative of the World Gold Council (WGC).
The deficit of gold supplies in China will reach 700-800 tons this year due to strong demand for gold in physical form.
"In addition to local gold production of 400 tons, it is projected that the total gold consumption in China will exceed 1,000 tons in 2013," Zheng Lianghao, managing director of the WGC Far East Division, said at a conference in Shanghai.
According to Zheng, in the third quarter, the demand for gold in physical form in China and India, the largest consumers of yellow metal in the world, remained high, despite the weakening investment caused by a sharp drop in gold prices.
Chinese demand this year jumped by almost 40% due to the growing interest in jewelry, bullion and coins, due to a sharp decline in gold prices.