China may become world’s biggest gold user, beating india

China, the world’s largest consumer of energy and base metals, is set to displace India this year as the biggest gold user on an annual basis as surging incomes drive increased demand for jewelry and investments.

Demand in China jumped 20 percent to 769.8 metric tons in 2011, while consumption in India fell 7 percent to 933.4 tons, according to a report from the producer-funded World Gold Council today.

“It is likely that China will emerge as the largest gold market in the world for the first time in 2012,” said Marcus Grubb, managing director of investment. China’s economic growth has lifted the nation’s consumption of everything from soybeans to copper, boosting incomes in the world’s most populous country. Gold has rallied for 11 straight years on rising investment and jewelry demand, led by consumers in Asia, and increased central-bank buying. China is also the world’s gold producer.

Source: BusinessWeek.com