Gold consumption shines in China

Consumption for gold products in the Chinese market has increased by 23.1 percent year-on-year in the third quarter, the World Gold Council reported.

According to the report released by World Gold Council on Thursday, the global demand for gold in the third quarter has dropped by nine percent to 915 metric tons year-on-year, its lowest point in eight years.

However, the Chinese market has seen a strong comeback as the demand for gold bars and coins has witnessed a 57 percent uptick year-on-year to 64.3 tons. Gold accessories have also seen a 13 percent growth to 159.3 tons. This has made China the biggest contributor to global demand this quarter.

Wang Lixin, general manager of the World Gold Council in China, said that from a long-term perspective, the younger generation, particularly millennials, will become the dominating consumers of gold products.

Wang added the market is picking up, though still falling behind a peak in 2013, and he can see many changes taking place in the structure of gold and jewelry markets, consumers and products.

"The new consumers have shifted their taste from traditional gold accessories to those with more innovative and modern designs," Wang said.

He said the market needs to follow the trend, upgrade its business strategies, technologies and design in order to push sales among younger consumers.

"I have faith in the market in the future as new processing technologies are being applied into the industry," he said. "We have seen an obvious pull this quarter, especially in the sale of accessories. I hope the annual result can come back to the same level in 2016."