The main driver for this increase was large scale investments, wherein annual demand was 1,640.7 tonnes, up 5% on the previous record set in 2010 and with a value of $82.9 billion. The major investing markets for gold in 2011 were India, China and Europe.

China and India are the major buyers of gold, generating 55% of global jewellery demand and 49% of global demand. India remains the largest country for demand with 933.4 tonnes, which is notable considering the volatility of the gold price and the weakness of the Indian rupee against the US dollar during the second half of the year.

Gold jewellery accounted for over 500 tonnes and investment market demand reached 366 tonnes. Indian demand accounted for 25% of total bar and coin demand worldwide.

In China, annual demand of 769.8 tonnes was up 20% year-on-year as a result of increases in both jewellery and investment. The largest rise was in investment, where demand of 258.9 tonnes with the value of RMB 84.5billion leaped 69%.

China jewellery demand increased every quarter of last year and was the largest single jewellery market worldwide for the second half of 2011.

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