Gold Demand Trends Q2 2013 Report Summary

WASHINGTON (Scrap Monster) : Since 1996, the World Gold Council has produced a quarterly summary of the state of gold worldwide, the Gold Demand Trends (GTD) report. The latest edition of this industry leading resource has just been published, and the key findings for Q2 2013 are summarized below.

Overall Demand

The strong recovery in consumer demand for gold has continued this quarter, with numbers up from the previous quarter. The demand for jewellery, bars and coins has increased by 53%.

Multiple markets saw increased gold demand appear in parallel with the dropping price of gold, as people took the opportunity to invest in physical gold products.

Individual Market Demand

India

Together with China, India is responsible for over 50% of the demand for gold jewellery worldwide. This quarter saw this demand increase in India by 70% year on year.

In addition to a strong quarter for jewellery, retail investment in gold bars and coins have also experience a record quarter, with demand up 116%.

China

As mentioned above, China is a major consumer in the gold jewellery market; jointly with India representing 50% of worldwide demand.

The passing of Chinese New Year often sees a decrease in total gold demand in China, but this quarter has seen demand remain very strong, with some retailers even running out of stock.

Finally, Chinese gold investors have helped push the demand for bars and coins up by a significant 157% this quarter.

United States

Q2 2013 has seen the demand for gold jewellery grow for the second quarter running in the United States.

Industry Overview and Supply

In the industry overall this quarter has seen a net increase of 105 tonnes invested in gold. The technology sector has experience steady demand, with a marginal increase.

Lastly, a decrease in gold recycling suggests strong consumer confidence in the future value of gold jewellery, bars and coins, and the overall desirability of gold in all major markets.

Courtesy: http://www.gold.org/media/press_releases/archive/2013/08/gdt_q2_2013_pr/