Physical gold demand is expected to come back with the end of the strike of India's gold trader as a protests to the increase of gold import tax of 2% to 4%. India, and China is one of the world's largest consumer of gold the end of strike of the gold merchant in India and by the gift-giving festival in India, namely Akshaya Tritiya on April 24th could be a possible future recovery in demand for physical gold momentum, especially if the price of gold remained at a fairly low level not far from the $ 1.620 per troy ounce.
Gold jewelry demand in China continues to show growth in 2011 with soaring up to 15% to new record highs, a trend that still seems to be repeated this year, according to precious metals consultants GFMS Ltd.. Wednesday.
Gold jewelery sector growth in China over the past year contrasted with jewelery demand in other regions, including India, mainly driven by rising inflation fears and the continuing growth in domestic fixed income, based on a survey of gold at 2012 conducted by GFMS, a unit of Thomson Reuters Corp.
China jewelery production grew 14.6% to print a new record high at 496 tonnes in 2011, after noted growth of nearly 20% in the previous year. On the other hand, the production of jewelery in India, it fell 3.1% to 701 tons although had scored a highest record 723 tons in 2010. Overall, the global jewelry production dropped by 2.2% in 2011 to 1973 tons.
According to GFMS, the expansion rate of gold demand in Asian giants are incredible, with an average annual growth reached 10% in the last decade. Sales during the post New Year China have shown significant numbers. The continued economic growth and increased interest to own gold as an alternative asset will tend to push Chinese production of jewelry toward a new record this year.
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