The volume of gold sales in China is not expected to increase this year due to the ongoing global economic crisis.
Albert Cheng, managing director of the World Gold Council Far East, told Shanghai Daily, “We expect the total sales volume in China to be the same as that of 2008, without posting growth, due to the spill-over of the financial crisis.”
China is the world’s largest gold producer and second biggest gold consumer after India. Last year, purchases of gold jewelry, gold coins, and gold bars in mainland China, Taiwan and Hong Kong increased 18% compared to 2007 to 432.1 tons. Meanwhile, China’s gold production in 2008 reached a record high of 282 tons, up 4.26% from a year earlier.
Expecting a slump in sales, the World Gold Council has launched a campaign to boost sales of gold jewelery in China by designing that targets Chinese consumers.