China is set to displace India as the globe's top market for gold, states a report issued by the World Gold Council and cited by published reports.
The rise in China, host of the globe's second largest and most rapidly developing economy, is due to increasing income and minimal options for investment, The Associated Press reports. The decrease in India is due to the nation's monetary unit, the rupee, becoming weaker and pulling down acquisitions of the yellowish metal in the subcontinent.
"On India, I think near-term it may have peaked with a flat year in prospect of tonnage, but medium-term the India growth, wealth and urbanization story is intact and we expect new highs in demand," managing director Marcus Grubb with the World Gold Council told Reuters. "It is just that China is growing faster, playing catch-up after having disregarded the market until recently."
Chinese purchases of gold increased 20 percent last year when compared to figures from the year prior.
Chinese purchase of gold during the last quarter of 2011 amounted to nearly 191 metric tons of gold whereas India acquired 173 metric tons of the yellowish metal. That period is typically when Indian purchases of gold climb due to festivals and weddings.
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