The perpendicular conditions of both the countries in terms of economic stress
From last few years, Indian and China are battling out hard in winning the title of the World’s largest consumer of gold. At first, India was defending their title firmly, but soon the gold prices started increasing, and the downfall and the economic crisis are hitting hard to the country. All such financial distress in the land has made it quite more comfortable for China to win the race and the title of the World’s largest consumer of the yellow metal.
The reasons for India stepping back in the competition with China
The demand for the gold has decreased gradually in India, and from this September the depreciation in the gold purchase is 32 percent or 124 tones less than last year. The increase in the price of the yellow metal can be one of the prominent reasons in its downfall and fascination among the people. Since July the import duty of gold has increased by 2.5 per cent, which was previously 10 per cent and now 12.5 Percent.
Not only India but some of the economically settled countries are also in the same boat as even their gold purchase has come to a stop for a short duration due to the sudden rise in the prices of the gold.
The overall gold purchase in India is 61 % less than that of China
The gold buying season in India is from July to September, which is also known as the pre-harvest season or the pre-marriage season where most of the people from the rural areas tend to purchase and store gold.
The farming loss and marriages have bought less gold due to the rise in the prices from 34000 per ten gram to 39000 per 10 gram in the short period from April to September
People from china is loving to shop for gold
The population of China is happy to store gold in their home, which has made them the World’s largest buyer of gold. In the first nine months of this year, China has demanded 20 per cent more gold than India which means India has bought 396 tons of gold and on the other hand China has bought 476 tons of gold in the first nine months of this year. The gap between India and China was highest in 2013 when China’s total gold in the year was 939 tons, and India had 628 tons which were 52 per cent higher.