After record-breaking Asian gold consumption in 2013, some analysts have been predicting a dramatic decrease in Eastern gold consumption in 2014. They often claim that this will help to suppress the gold price further. However, the latest information from the China Gold Association shows that Chinese gold demand is as strong as ever and is likely to stay that way for decades. With this ever-growing demand, Asian gold industry experts expect prices to continue to rise.
“China’s consumption, which increased to a record 1,176.4 metric tons in 2013, is expected to be ‘more or less the same’ this year, Zhang Bingnan, vice-chairman and general secretary at the [China Gold Association], said in an interview in Singapore. China accounted for about 28 percent of global usage last year, according to the London-based World Gold Council…
‘In the next 10 to 20 years the trend probably won’t change because there is more gold in the west and less of it in the east,” said Zhang, who also addressed an industry conference in the city-state yesterday. “As incomes in the east rise, demand for gold will follow a similar trend and continue in the future whether in China or India or other developing countries, unless there’s some extraordinary event.'”
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