The rout in gold that wiped out $56 billion of value this yearis spurring consumer demand in China and India, the biggest buyers,and leading JPMorgan Chase & Co. and Bank of America Corp. tosay prices are bottoming.

Sales of jewelry, coins, and bars will reach as much as 1,000metric tons in India and China in 2013, valued at a combined $87.6billion, the World Gold Council estimates. Prices will average$1,300 an ounce in the fourth quarter, or 5 percent less than now,the median of 17 analyst estimates compiled by Bloomberg shows.Bank of America is the most bullish, predicting a fourth-quarteraverage of $1,495, and JPMorgan anticipates rising averages inevery quarter through the end of next year.

While investors from John Paulson to George Soros sold after thebear market began in April, as some investors lost their faith ingold as a store of value, the slump boosted sales in Asia.Australia & New Zealand Banking Group Ltd., Deutsche Bank AG,and UBS AG opened vaults in the region this year, and U.K. bullionexports rose eightfold, a sign to Macquarie Group Ltd. of the flowof metal from west to east. Asian buyers are being attracted byprices that are now 29 percent below the record $1,921.15 reachedin September 2011.