China’s total gold demand (excluding central bank purchases) amounted to 968 tonnes in 2016, a 10% year-on-year decline from the previous year.
China’s demand for gold bars posted a seven percent increase, amounting to 237 tonnes for the full year, mostly due to the fear of the depreciation of the yuan, and a lack of viable investment options.
Jewellery fabrication, which accounts for approximately 67% of China’s total gold demand, delivered a 17% annual decline to 636 tonnes in 2016, some 41% and 438 tonnes below the peak of 2013 although it must be recognised that some of the 2013 purchases were advance purchases for 2014.
A lack of attainable investment alternatives, along with the potential for further depreciation of the yuan, could be working favourably towards the country’s investment demand in 2017
Reference: GFMS Thomson Reuters
Thai
Eng