China's gold consumption up 9.35 pct in 2012

BEIJING - China's gold consumption amounted to 832.18 tonnes in 2012, an increase of 9.35 percent from a year earlier, data from China Gold Association showed Saturday.

Consumption of gold jewelry rose 10.09 percent year on year to 502.75 tonnes, while those of gold bars and gold coins gained 12.22 percent and 21.63 percent, respectively, to 239.98 tonnes and 25.3 tonnes.

But consumption for industrial and other uses saw a drop last year, the association said.

Demand for gold has grown steadily over the years as more Chinese see it as a hedge to diversify investment risks and battle against inflation.  China is currently the world's second-largest gold consumer after India.

China produced 403.05 tonnes of gold in 2012, making it the world's largest producer for the sixth straight year, according to previous data from the association.