In 2012, gold demand in China could surge as much as 30 percent to make the country the world's largest gold market on an annual basis according to the World Gold Council. China's gold demand, which was at record levels during the first quarter, may increase from 769.8 tons in 2011 to between 900 metric tons and 1000 tons in 2012 according to Albert Cheng, the Far East managing director at the World Gold Council. "We are confident China will become the largest source of demand for gold this year," Cheng said in Singapore.-----

"Over the next two to five years, China and India will go neck to neck and may account for more than 50 percent of world demand."