China surpassed India to become the largest gold consumer in 2013 because of soaring purchases of jewelry, gold panda coins and gold bullion, according to a report by Securities Times.

The demand for gold in China amounted to 1189.8 metric tons in 2013, up 32 percent year-on-year, and five times the amount in 2003, according to Thomson Reuters GFMS. Slumping gold prices stimulated the demand.

The zeal for gold in Europe and North America has died down after a 12-year boom, according to Financial Times. As the economy warms up, inflation expectations have gradually weakened, leading to a decrease of 880 tons in gold holdings.

Gold from Europe and other markets is melted in Switzerland into small pieces of bullion before being transported to Asia. GFMS said it is the largest transportation of gold in terms of value.

Gold consumption in India increased by 5 percent to 987.2 tons in 2013. The demand was suppressed by the country's new import tariffs and restriction policies.