India has the world largest gold market for decades but in the final quarter of 2011 there is a significant decline in the demand of gold in india. Demand had declined more than 50% when compared to the previous year as collapse in the value of the rupee made gold more expensive for Indian Consumers.
On Contrary Gold imports from Hong Kong to China rose from 118,904 Kg in 2010 to 427,877 Kg in 2011, an increase of 259% in Gold imports when compared to the previous year i.e more than tripling from 2010 .China is set to overtake India this year as the world’s largest consumer of gold. In the second half of the year the Indian demand waned,China edged ahead as the world’s top consumer.
Chinese gold consumption has already risen by 140 per cent between 2007 and 2011, as growing wealth and the liberalisation of the domestic gold market drive a surge in consumption.