Keeping in mind the demand of gold in China during the year 2009, the strength of its economy was reflective of its financial stability and growth. It was reported to have grown even better than expected by increasing as much as 7.9% during the second quarter of the year. However, in 2009, the national demand for gold in China augmented 11.4% to around 89.6 tonnes that could be compared to the same period that was generated a year before and was equivalent to around 14.7% increase in terms of dollar, which could be further estimated around $2.66 billion.

At the same time, the demand for gold all across the globe, excluding China, started declining. This was estimated around 18.0% during the same period that was then equivalent to 15.6% decrease in terms of dollars. Therefore, it could be said that all the demand figures had made China overtake even India, being the largest gold consumer of the world, and this was stated with respect to the graph that showed the demand figures from the first half of 2009.

Some countries in the world are known all around the world for their gold production and consumption as well. India has been known as the greatest consumer of gold in the world. However, this record of India was broken by China in the year 2009. Chinese consumption of gold reached its record height last year.

It might not seem appropriate to expect that Chinese gold demand in 2009 soared the Indian demand for the entire year, yet, the fact remains that the gap between both the countries has been narrowing. China has also been predicted to be seen an emerging and sustained gold consumer over the next 10 years.

The inbound and domestic gold production of China had been quite contented with regards to majority of its internal demand. Therefore, the trend might also have an overall impression on the gold price as well, with due respect to the growing demand of gold in China.

This imbalance might be paired up with other elements as well, as they are expected to have a drastic effect on the gold market all across the hemispheres.

All this has happened because, as the prices of gold rose, the gold miners in China increased the production of gold. In addition to this, jewellery demand also increased in China in the year 2009. With the increase in the income of the middle class, the investment in gold assets and jewellery increased.

Therefore, from 2007, the gold demand initiated from 270.491 tonnes and ended on 290 in 2009. This gold business volume from the Shanghai Gold Exchange was above the estimate of 4463 tonnes in 2008 and was witnessed to get better as the year progressed towards 2009.

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