China overtake India to become the top gold consumer???

1. China will overtake India in 2009, basis Total Gold

Demand (note: this excludes central bank purchases!).

2. India still the world’s largest jewellery consumer this year.

3. China’s investment demand is now larger than India’s.

4. Secular growth of gold demand stronger in China but

India is currently either at or close to a cyclical low.

5. India’s demand is more price sensitive than China’s;

which country is the largest private sector consumer in

2010 will depend on the trend in the gold price next year.

Economic Backdrop

China & India

GDP (US dollars, Billion) : 4,327 & 1,207

GDP per capita (US dollars) : 3,259 & 1,017

Population (Millions) : 1,328 & 1,186

Source: IMF; Data refers to 2008 estimates