China Likely World's Largest Gold Consumer

According to this item, estimated gold demand in the PRC was 450 tonnes in 2009 as compared with 395.6 tonnes recorded for 2008.

The rising demand is being fuelled by increasing prices. While consumers in India, Turkey and the Middle East, traditionally locations with a high demand for the precious metal, have been put off by rising price tags, it's been quite the opposite in China. Consumers there are rushing to buy gold, attracted by buying into a rising market.

Albert Cheng, Far East Managing Director of the World Gold Council, attributes the rising demand to China's flourishing economy, which is enabling consumers to indulge in one of the country's favourite luxuries....

Chinese New Year demand is making itself felt too, and is contributing to the resiliency in the gold market. This year's New Year is Feb. 14th in the Western calendar.