The Chinese demand for gold looks set to continue to rise, according to the World Gold Council.
The agency believes demand will increase by some 20% over the coming few years, with private sector demand going to at least 1,350 tonnes by 2017.
Chinese purchases of gold last year catapulted it into the world’s largest gold-consuming country, outstripping India for the first time and forcing it into second place.
Chinese customers bought a record 1,132 tonnes of gold last year, in jewellery, gold bars and coins for investment.
The capacity to buy results from China’s increasingly wealthy population as rapid urbanisation creates a greater middle class. Unlike many of their counterparts in the west, the Chinese middle class regularly saves money and often views gold as a good investment against such things as the Chinese stock market.
Albert Cheng, from the World Gold Council, said: "The cultural affinity for gold runs deep in China and when this is combined with an increasingly affluent population and a supportive government, there is significant room for the market to grow even further.”
Gold’s popularity has not waned in the west either. Demand remains strong, especially in the US, where people also bought jewellery, bars and coins for investment.
