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Gold continues its journey from West to East

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Staff writer ▼ | November 18, 2013
The latest World Gold Council Gold Demand Trends report, which covers the period July-September 2013, highlights the resilience of the global gold market in what is traditionally a slower quarter for gold demand.
Gold market
Gold marketThe latest World Gold Council Gold Demand Trends report, which covers the period July-September 2013, highlights the resilience of the global gold market in what is traditionally a slower quarter for gold demand.


The continued growth in consumer demand across the globe and the strength of Asian gold demand overall, reinforces the patterns first seen at the beginning of 2013, clear evidence of the self-balancing nature of the global market.

Overall demand for gold in Q3 2013 was 869 tonnes (t), down 21% on the same period a year ago. However, demand remained strong across most countries and sectors. The exceptions were gold-backed ETFs, which had net outflows of 119t this quarter, compared to 402t in Q2 2013, and India where the result of government intervention in the Indian gold market was to reduce demand by 71t this quarter.

Taking the year as a whole so far, the jewellery, bar and coin sectors are showing year-to-date increases, while technology demand remains robust. ETF investment demand is the notable exception, having weakened this year.

Consumer demand globally - the strength of jewellery and bar and coin demand in 2013 to date can be seen when compared against the first three quarters of previous years. As of the end of Q3 2013, demand stood at 2,896t, 26% higher than the same year-to-date figure in 2012.

Global demand for jewellery - far and away the largest component of global demand - was 487t in Q3 2013, compared with 462t in the same period last year, an increase of 5%. Demand was particularly strong in China, where the figure reached 164t, a rise of 29% compared to with the same period last year.

Robust growth in the jewellery sector was also seen in the Middle East, Turkey and, significantly, across South East Asia, beyond China. After eight years of decline, the US jewellery market had its third consecutive quarter of growth with a shift to higher carat items – signalling the re-emergence of aspiration and luxury as key drivers of gold jewellery in the US.

Global bar and coin demand - also showed a year-on-year increase, reaching 304t, a rise of 6% compared to the same period last year. This takes overall investment in bars and coins so far this year to 1,252t, a rise of 36% compared to the first three quarters of 2012.


 

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