Global Gold Demand Remains Lack Lustre
The global demand for gold slightly increased in the third quarter of 2015 despite patchy performance in some markets, according to trade body the World Gold Council.
Overall, gold supply was up 8% year-on-year to 1,121 tonnes, but some of the underlying markets stood still.
Gold supply and demand statistics
The figures from the council’s latest report found:
- Consumer demand for coins and bars was up 14% to 928 tonnes
- The call from investors surged by 27% to 230tonnes pulled forward by a rise in bar and coin demand in the USA, up 207% to 33 tonnes. The same upward trend was also seen in China with a 70% increase and Europe, with a 35% rise.
- Jewellery buyers bought 632 tonnes of gold, up 6% during the past 12 months, thanks to a 15% increase in India. Small gains were also seen in the USA, China and the Middle East
- Central banks ended the quarter with 175 tonnes of net purchases – a trend that has lasted for nearly five years
- Technology companies bought 4% less gold as many companies are shifting to cheaper resources in devices such as smartphones, tablets and computers
On the supply side, the figures were static with just a 1% increase year-on-year.
Mining and recycling companies showed a year-on-year increase in production of 3%, but the quarterly comparison figures showed a drop of 1% in gold mining and 6% in recycling.
Floating price for gold
Alistair Hewitt, head of market intelligence at the World Gold Council, said: “India and China dominate the market, but we have seen an overall global drop in consumer demand for gold.
“Demand for coins, bars and jewellery are holding the market up, especially in the US where Mint Eagle coin sales hit a peak last seen in 2010.
“Central banks are also heavy buyers and this quarter’s return is the highest since setting a record in 2014. Russia is the most significant buyer.”
Since November 2014, the price of an ounce of gold has floated between £700 and £750, with a peak of £862 in February.
Today’s price is £714 an ounce, compared with £762 a year ago.
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