China may break gold demand and output records this year as jewelry consumption grows and miners increase production after sales reached all-time highs, Bloomberg reported, citing the China Gold Association. Demand for gold in 2009 may be more than 450 metric tons against 395.6 tons last year, and output could reach 310 tons, up from the 282 tons recorded a year earlier, said Zhang Yongtao, the organization’s deputy secretary-general. China overtook South Africa to become the world’s largest gold producer in 2007, and the World Gold Council said in July that China could replace India as the biggest consumer of the metal. Bullion prices have risen 34% this year, marking the ninth consecutive year of growth, as buyers, including central banks and pension funds, look to shelter from potential risks including currency movements and inflation.
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