Chinese gold bar demand tanked 62% during H1 2014: China Gold Association

BEIJING (Scrap Monster): The latest statement released by the China Gold Association indicates that gold demand fell sharply in the country during the first half of the year 2014. The overall gold demand in the country fell by 19% over the previous year.

The increased demand for jewelry in the country was offset by the extremely poor demand for gold bars and coins. The gold jewelry demand rose 11%. On the other hand, Chinese gold consumption declined to 569.5 metric tons during this period. The demand for bars tanked 62% when compared with the corresponding six-month period in 2013. The Chinese demand for bars dropped to 105.6 tons. Also, the demand for gold coins and other uses of the metal dropped 44% to 11 tons.

The net gold imports from Hong Kong fell almost 20% over the previous month in May ’14 to 52.3 tons. The imports more than halved when compared with the total imports of 106 tons during May last year.

According to Zhang Bingnan, Vice-Chairman and General Secretary, China Gold Association, the consumption of gold by the country is likely to remain more or less the same on a full year basis in 2014.

Last year, China had surpassed India to become the world’s top gold consumer nation. The Chinese gold consumption had touched a record 1,174 tons in 2013.