Chinese gold demand set to double within decade

Gold demand in China has been rising by an average of 13% over the past five years. (Photo by STR/AFP/Getty Images)

Gold market in China could be worth £19.36bn by 2020.

Demand for gold in China is set to double in tonnage terms in the next ten years to US$29 billion (£19.36 billion), according to new data from the World Gold Council (WGC).

Chinese gold demand has been rising steadily over the past few years, achieving an average growth of 13 percent a year over the past five years. Gold consumption in the country was worth more than US$14 billion (£9.35 billion) last year, equivalent to 11 percent of global gold demand.

WGC managing director of investment Marcus Grubb said: “Now one of the world’s largest economies, China has already rapidly become a prominent gold market. However, our analysis confirms that significant untapped growth potential exists in the Chinese gold market.

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“In China, if gold demand continues to accelerate and becomes more comparable with other major markets, WGC expects it to double in tonnage terms within the next decade, which would represent annual gold demand of approximately US$29 billion at year end 2009 average prices.”

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