China to overtake India as biggest Gold consumer

China will this year topple India as the world's biggest gold consumer, as demand for the metal as both a "safe haven" and to use for jewellery keeps growing, according to the World Gold Council. Latest data released by the World Gold Council, the agency involved in market development, showed that China has overtaken India as the world's largest gold consumer as buyers here shunned the yellow metal in the wake of spiraling prices.Demand in China jumped 20 per cent to 769.8 metric tons in 2011, while consumption in India fell 7 per cent to 933.4 tons,While India remained the top consumer for the full year, even that position may come under threat in 2012. Sales during the year fell 7% in India to 933 tonnes, led by a 14% fall in the jewellery segment. Purchase of bars and coins, however, grew by 5%. At 770 tonnes, China's consumption was 87% of India's.Demand in China is climbing as investors seek to protect their wealth from inflation of more than 4 per cent, especially after the government clamped down on property investment last year . The amount of gold bought in China rose 20 per cent in 2011 over the year before to 770 metric tons, the World Gold Council said in its annual report. That put China behind only first-place India, where 933 metric tons were bought.Worldwide demand for gold last year hit 4,067 tonnes, worth an estimated $205.5bn - the first time the figure has passed the $200bn mark. Investment buying drove the rise, with demand up 5pc on the previous year.