India-China Collectively Contributed 53 % of Global Physical Gold Demand in 2013: World Gold Council

LONDON (Scrap Monster) : Global gold demand in 2013 witnessed a monumental shift marked by the regaining investor confidence in global economic recovery and speculations on Fed’s monetary tapering. Asian gold shoppers were found to exploit the opportunity of gold price plunges, piling up the metal with great enthusiasm for the future. As per the latest data released by the UK-based top market development organization, the World Gold Council (WGC), China and India collectively made contributions for 53 % of the global physical gold demand in 2013.

According to the WGC report, Asian countries other than China and India including South Korea, Thailand and Vietnam accounted for the surging global gold demand last year. While the Thailand purchases accounted for 73 % of global gold in 2013, the South Korean and Vietnamese purchases saw a rise of 37 % and 28 % respectively. According to WGC, the global gold jewelry demand last year was found to zoom up by 17 %, indicating the highest move of 2013. The demand therefore created the highest record which mounted to reach 2,209.5 tones in 2013. Bar and coin investments was also witnessed to accelerate in 2013 by 28 % to reach 1,654.1 tones, against the highest record ever.

The unexpected plunge in gold price over the year encouraged bargain hunters and investors across the world to trigger their good-to-buy appeal. Though some of the investors gathered towards riskier assets like gold and other ETFs which created a 27 % shedding of safe-haven appeal of the metal, global gold demand could still make a good stand at the global market among buyers.

Demand of gold from emerging markets in the West to those of Asia and the Middle East regions are seen to be accelerating, as the countries of these regions are taking steps to diversify their gold reserves to meet the increasing demand of their customers. 2013 saw immense surge of Chinese bar, coin and jewelry demand that reached 1,065.8 over the year. It showed a 32 % rise year on year, thereby breaking the 1,000 ton resistance for the first time in 2013. China thus became world’s top gold consumer by beating India which held the position earlier. Even though Indian consumption could not keep pace with China’s due the Govt. imposed import curbs, Indian physical gold demand still offered a 13 % hike in 2013, reaching 974.8 tones. Thus China & India accounted for the major part of global gold consumption collectively last year.