The latest World Gold Council report shows that China was the biggest consumer of gold in 2013, followed by India.

China emerged as the largest consumer of gold in 2013, according to the latest report by the World Gold Council.

The global gold market saw a 21 per cent increase in demand in the year, contrasting with outflows of 881 tonnes from exchange-traded funds. The result was that global gold demand was 15 per cent lower than in 2012, with a total of 3,756 tonnes in the full year. Annual global investment in bars and coins reached 1,654 tonnes, up from 1,289 tonnes in 2012, up 28 per cent. The WGC says this is the highest figure recorded since 1992.

For 2013, China and India posted the largest increased in gold bar and coin investments, up 38 per cent and 16 per cent, respectively. Demand for jewellery also went up 29 per cent from 519 tonnes to 669 tonnes in China. In India, jewellery demand rose by 11 per cent from 552 tonnes to 613 tonnes. 

According to WGC, China is the fastest-growing market for gold jewellery in the world, with consumers looking for "the very highest level of purity." More than 80 per cent of gold jewellery in China is made of pure 24 carat gold. Over 75 per cent of all urban Chinese women reportedly now own more than one significant piece of gold, either considering it as an investment or holding it because "it feels good."

The average price of gold globally for 2013 was $1,411 per ounce, down 15 per cent on 2012.