China and India are giants consumer had 52 per cent of global gold reserves, and despite sharp fluctuations in prices, demand in both India and China continues to rise.
In 2010 reached India Purchases of gold as a record of 963 tons, an increase of 66% for the year 2009 the province of this on the level of classification, known as the largest consumer in the world.
For its part, China was consumed in the year 2010 based on data from the World Gold Council, 580 tons, an increase of 27%.
Despite the rise in gold prices, the demand for Indian and Chinese for gold has increased by 38 per cent and 25 per cent respectively during the second quarter of 2011, compared to the same period in 2010, is likely to continue this growth due to the high levels of economic prosperity, and high levels of inflation and festivals next big buy gold.
What about India’s stock of gold? Is it easy to appreciation?
Stocks India’s gold is difficult to select it, but estimated it is more than 18,000 tons found at the Indian families, and it is the largest stock of your gold in the world, with a rate of 11% of the size of the global stock of gold, and is larger by about 40 times the size of the gold found in the possession of the Central Bank of India. It should be noted that the presence of two «Mimounan» to buy gold every year and are «Danteras» (shower luck) in October, and «Lakshya Traetea» (on gold) in May.
What about the reflection of this Indian obsession with gold on the economy?
Some economists argue that this Indian obsession with gold has some adverse effects, as it had been invested in the funds used to buy gold or shares in banks instead of locked in this way in non-productive assets, this may lead to increased gross domestic product (GDP) in India significantly, Indians usually invest their money in gold jewelery, and end up linked to emotional value, which makes them cling to them instead of recycling their capital on an ongoing basis.
Buy gold in China has greatly enlarged so that China has become one of the fastest growing gold jewelery markets in the world. While the gems represent a large proportion of the purchases of gold in the country, it can also for the Chinese to buy gold from local banks. Has entered the World Gold Council in partnership with the Industrial and Commercial Bank of China, the largest bank by deposits in the world, where the two began in the provision of «gold accumulation plan» which allow investors to buy and the formation of small amounts of gold over time. It has become the Industrial and Commercial Bank of China about 1.7 million accounts, since the launch of this plan in December 2010 this summer, which led to the accumulation of more than 12,000 kg of gold.
And the Chinese investors to buy gold for fear of inflation only, but they are buying gold as well as a hedge against deflation seriously, reaching Chinese demand for gold, 706 tons last year, which means that local investments in gold and the demand for gems can exceed easily the size of the total demand for gold in the last year by 10% (about 70 tons) this year.
Did not succeed highs in gold prices to change this trend, where the local mining companies struggled to feed the growing demand in the country.
China and India’s share of gold global scale:
According to the magazine «Forbes» than the share of India and China, gold’s share of North America as a whole, which represents 8 per cent, and the share of Europe and Russia, which represents 13 per cent and the share of each of the Middle East and Turkey, which represents 12 per cent.