A recent report published by the World Gold Council (WGC) says that China has increased gold consumption in recent past leaving India and other countries far behind. Demand for gold in India has dropped by about 50% in the last quarter, whereas a sharp 15% rise for the same has been reported from China.

Indians are always considered as too fascinated about gold ornaments, but following the recent unprecedented hike in gold prices, they seem to have lost all their excitements remaining goldy! The current cry off in gold demand in Indian market has never been seen earlier. According to the data made available by the WGC, worldwide demand for gold in volume has been dropped by about 16%, though in valuation it has increased by about 20%. With highest price level seen ever, the precious metal is likely to affect world economy greatly.

Though, cost of gold has increased and demand dropped worldwide, but supply of gold has seen marginal increase during the last one year. According to the published report, gold has been supplied to the consumer markets about 6% higher in tonnage than the previous year. Interestingly, like food crisis, west is also heading towards a gold crisis, if the present trend continues. If the WGC data is to be believed literally, consumption and demand of gold has been reduced by about 15% in US, and seeing the market economy, there seems to be no immediate relief for the US too!