China’s Gold Demand Dropped 25% in 2014

China’s gold consumption fell 25 percent in 2014 as the price collapse that triggered an “extraordinary” surge in buying the year before wasn’t repeated, the China Gold Association said.

Consumption declined to 886.1 metric tons from a record 1,176.4 tons in 2013, the Beijing-based group said in a statement on Friday. Demand for bars sank 59 percent, coin purchases slumped 49 percent and gold use in jewelry contracted 6.9 percent.

Gold fell 1.4 percent last year amid a rally in stock markets that damped interest in the metal as an investment and as an anti-graft drive in China hurt demand for luxury goods. Buying in China surged 41 percent in 2013, spurred by a 28 percent slump in prices.

“The precipitous drop in prices in 2013 led to an increase in demand of extraordinary proportions,” the association said in the statement on its website. “The relatively stable price in 2014 suppressed investment demand.”

via SOURCE

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