Gold demand has increased in US while settling in the Eurozone on lack of news in the latter. Despite low prices, investors are looking to take advantage of buying opportunities in a market that could respond to market volatility in the US stock markets.

Demand is not only increasing in the US, but has remained strong in China.

It is not well known how much gold China is truly buying. Some say recorded consumption, although in some ways, such as on the Shanghai Gold Exchange, gold demand seems more tempered.

As an indicator of gold flows into China, all the data has value in indicating trends, but what the various interpretations seem to show is that Chinese wholesale demand (i.e. demand by the general public comprising primarily jewellery and investment (bars and coins) and other gold investment products did indeed slip sharply in 2014 over 2013’s record levels- perhaps by as much as 30%. But the SGE figures also suggest that overall Chinese demand (which includes gold going into Chinese bank vaults for use in financial transactions – which falls outside the mainstream analysts’ ‘consumption’ calculations) did not fall back by nearly as much – perhaps by only 4%. This could be seen as indicating the banking sector perhaps accounted for close to 1,000 tonnes in 2014 – which seems an awful lot and still leaves a serious statistical discrepancy.

What is apparent from the latest set of mainstream analysts’ ‘consumption’ statistics – even though they are hugely below the SGE overall figures – is that China remained the world’s No. 1 gold consumer last year, comfortably ahead of India. Unfortunately the World Gold Council’s earlier figures, suggesting China had fallen behind India, will continue to be quoted by mainstream media as definitive – unless, and until, perhaps the WGC adjusts its data in the light of the latest GFMS figures, when the next Gold Demand Trends report comes out next month. Of coursed if one adds in the presumed bank demand, China will have remained hugely ahead of India.

This demand is expected to continue and the gold and silver prices could see some considerable gains in coming years.