More than 29 percent of gold produced in the world are used for making gold jewelry. According to the World Gold Council, India and China accounts for more than 62 percent of demand for gold worldwide. The global demand for gold for jewelry is estimated at 551 tons valuing a record breaking $28.9 billion a quarter a year. Generally these two countries experience year-over-year demand increase of 15 percent in India and 19 percent in China. When gold prices go down, demand for gold from India and China increase substantially. The value of gold imported by India reached a record $38.4 billion in 2012. Indian Finance Minister complains that nation’s hunger for gold jewelry is causing the trade gap to widen.
Gold jewelry is in high demand during the Indian wedding season. More and more gold is also purchased during Akshaya Tritiya, a Hindu festival that take place in India in May and many Indians buy gold and silver on May 13th which is considered an auspicious day to buy precious metals. Chinese mainly demand gold bars and coins for investment purposes and the demand is at a record five-year quarterly high according to the World Gold Council data.