The Chinese are the biggest buyers of gold

In 2013, China accounted for 26% of the world's private demand for gold. Chinese investors and consumers were able to benefit from lower gold prices and collectively bought 259 tonnes of jewellery and investment precious metals. China today is both the world's largest jewelry and investor market for physical precious metals. These facts illustrate that China has grown into a true gold nation and exerts the most significant influence on the global demand for gold. 

Within two years, the Chinese will buy 20% more gold up to 1350 tons on an annual basis, in the form of jewelry, coins and gold bars. This is according to new research from the World Gold Council: China's gold market: progress and prospects. Interestingly, in addition to the private demand for gold, the Chinese state buys gold through companies. Chinese individuals are very optimistic and have been valuing gold for a long time.

The demand for gold is the highest in sixteen years, according to the World Gold Council's report. In addition to the gold demand from consumers, the Chinese government's policies are creating a growing need for this precious metal. 

Source: World Gold Council