Overall global demand for gold this year will surpass 2009 levels, driven by increased consumption in India and China.
According to the World Gold Council’s (WGC’s) Gold Demand Trends report for the third quarter, demand increased 12 per cent over 2009 in the same period, boosted by recovery for gold jewellery in India and continued strength in the Chinese market.
“Healthy gold demand growth in the third quarter occurred in the context of record international prices, demonstrating how consumers, particularly in India and China, are continuing to appreciate the enduring value of gold,” said Marcus Grubb, WGC’s managing director for investment.
“The rediscovery of gold’s properties as both a currency and a monetary asset have been brought into sharp focus. Quantitative easing has forced the adjustment of global imbalances into currency markets and the resulting currency conflict is positive for gold. In addition, we believe demand will be facilitated by the growing number of channels that serve to make gold more easily accessible to a greater number of investors.”
India, China, Russia, and Turkey topped the list of countries with highest gold consumption levels, accounting for 63 per cent of the global demand.
Industrial demand is also expected to remain strong, given the popularity of iPads and smartphones.
