India, China top gold consumers

INDIA and China are the biggest consumers of gold jewellery, bars and coins by far.

A PricewaterhouseCoopers (PwC) report on the direct economic impact of gold says the global gold supply reached 4,477 tonnes in 2012, up 48 per cent from 3,017 tonnes in 2007, with most of the growth coming from recycled gold.

Recycled gold is gold sourced from previously fabricated products that is refined back into gold bars.

Forty-three per cent of gold was used in jewellery, 35 per cent in investments (bars, coins and gold-backed exchange traded funds), 12 per cent in central bank gold purchases, and 10 per cent in technology and manufacturing.

"The 13 largest gold-consuming countries in 2012 accounted for 75 per cent of gold used for fabrication and 81 per cent of that used for (final) consumption, either in the form of jewellery or investment products such as small bars and coins," said the PwC report, which was released on Wednesday.

"By far, the two largest consuming countries are India and China."

India consumed 864 tonnes of gold used for jewellery, bars and coins in 2012, China consumed 784 tonnes, the United States 162 tonnes, Turkey 110 tonnes, and Thailand 81 tonnes.

India and China accounted for more than half of global jewellery fabrication and final consumption at retail level.

India is the top fabricator and consumer of gold jewellery, accounting for nearly one third of global fabrication and consumer demand.

India consumed 552 tonnes of gold used for jewellery in 2012, China consumed 519 tonnes, the United States 108 tonnes, Russia 70 tonnes, and Turkey 62 tonnes.

The PwC report said about two-thirds of new gold supply comes from mining and the other one-third from the recycling of gold.

Mines produced 2,861 tonnes of gold in 2012, up 15 per cent from 2,498 tonnes in 2007, spurred by the higher price of gold, which more than doubled.

The six largest gold producers - China, Australia, the United States, Russia, Peru and South Africa - extracted more than half of mined output.

Chinese mines extracted 413 tonnes of gold in 2013, or 14.5 per cent of the world total.

Australia ranked second, producing 250 tonnes, or 8.7 per cent of the world total.

The key growth areas for gold mining include China and Mexico.

Chinese gold production lifted by 47 per cent between 2007 and 2012, and Mexican production by 118 per cent.

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