Chinese consumers have always been large buyers of physical gold. In 2013, through the third quarter (the most recent data available), Chinese consumer demand far outpaced any other country in the world, according to Thomson Reuters GFMS and the World Gold Council.
Moreover, dynamics now unfolding in the Land of Rivers and Mountains could potentially help increase the already high levels of gold demand there. China remains in the midst of a larger structural change as it attempts to decrease reliance on its export-led growth model to increasing the importance of the domestic Chinese consumer to its economy. As the global financial crisis unfolded in 2008, Chinese authorities implemented an aggressive and large-scale fiscal response focused on building domestic infrastructure and real estate development projects.
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