Silver imports in China have decline in recent months. Conversely, China’s gold imports continue to pick up. The sharp drop in the prices of gold and silver are likely to only pull up the demand for gold and silver in China one of the leading importer of precious metals.
The slower growth in China’s economy may have also adversely affected the demand for silver: During the first five months of 2013 China imported 991 tons of silver, which represented a 12% drop in imports compared to 2012. China was the second largest importer of silver after the U.S in 2012.
China is also among the largest importers of gold; analysts expect China’s imports will surpass 1,000 tons during this year. During 2012, China’s gold consumption was 832.18 tons, which represents gold consumption by over 20%.
Since the beginning of June, the prices of gold and silver tumbled down by nearly 11.3% and 14.4%, respectively. Their sharp drop in prices is likely to affect the demand for gold and silver in China. In the coming months we may see a rise in demand for precious metals. This trend may curb down the recent tumble in the prices of precious metals.
For more on gold – check out Gold Council’s site
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