China's activity with its consumption of gold in the first six months of this year increased and they should overtake India as world leaders in the use of gold, within a very short period.
They have consumed approximately 706 tons of gold in the first half of this year (2013) an increase of nearly 54 percent from a year ago.
If we review the consumption of gold for all of 2012, China will import approximately just over 832 tons for that whole year and just over 420 tons approximately at the same time last year, end of July 2012.
China took advantage of gold's biggest two-day fall in over 30 years when gold dropped under $1,200 in June. China purchased more gold than any other country and were consistent buyers.
China could actually consume more than 1,000 tons by year end and overtake India as the world leaders of consumption of gold, according to World Gold Council.
Some experts feel that China will eventually hit the 2,000 tons per year by the year 2016, which would work out to approximately 80% of the world global gold supply.
What effect would this have on the price of gold, too early to say but my dollar would be that gold currently is at a bargain rate for investors?
India has recently risen their import duty to 8 per cent from 6 per cent on June 5, along with central banks placing curbs on shipments on a consignment basis and limited shipments for local consumption against cash. This certainly has had an effect on their imports of gold from last year.
India is currently the largest and most important country in the world when it comes to gold. They are they largest holders of gold in the world, gold is estimated to make up approximately 7 percent of all Indians household savings, at the moment India is the largest consumer of gold in the world.
A tradition in India that has been around for hundreds of years, Indians have always relied on gold for savings, along with a payment from the bride's family to the groom's family upon marriage and it is traditionally made in gold.
India's love for gold is almost like a religion that goes back thousands of years, a tradition that is more than likely to never disappear from their culture.
Is China succeeding with their marketing gold plan
All the Best,
Joseph F. Botelho One Gram at a Time
"Pay Yourself First Because the #Economy that Matters Most... is the One in Your Own #Home" https://t.co/wo7XWWjaFZ pic.twitter.com/VSVAtkJ6El— Joseph Botelho (@jfbmarketing) January 19, 2016