The World Gold Council has produced the Gold Demand Trends (GTD) report since 1996 and the latest publication of this industry leading resource is now available.
The findings for this financial quarter, Q1 2013 are summarized below.
A fall of 13%, excluding OTC investment, otherwise flat compared to 2012.
Individual Market Demand
A rise of 27% overall, comprising a 52% increase in investment and a 15% growth in jewellery.
The Indian market continues to be the largest in terms of gold demand.
A rise of 20% overall, comprising a 22% increase in investment and a 19% growth in jewellery.
The Chinese market continues with a strong demand, consumers investing in bars and coins as an inflation hedge.
A 75% slice of the overall 177 tonnes global ETC reduction in demand, countered with a 40% growth in bars and coins plus a 6% rise in jewellery – the first increase since Q3 2005.
The US market is growing in complexity due to asset switching and increasing strength in the economy.
Industry Overview and Supply
Central Bank demand continues to be strong at 109 tonnes, with Russia, South Korea and some Central Asian Republics buying in this quarter.
These emerging market’s motivations are driven by diversification from traditional assets such and the Euro, Dollar and also Sovereign debt.
Overall gold supply trend was flat, with mining up 4% and recycling down by 4%.