Gold Demand and precious metal in China, is Just Getting Started . China, the world's largest consumer of energy and base metals, is set to displace India this year as the biggest gold user on an annual basis as surging incomes drive increased demand for jewelry and investments. China is now considered the world's largest producer of gold. But most of it stays in China, where people see gold as a safe, solid investment in uncertain economic times. The big news coming from China in the past few weeks, is that the investment demand for gold and silver is going up.