Gold demand up in third quarter 2009, says WGC
by eyetee | December 7, 2009 12:00 am
[1]However, demand was down 34 per cent compared to year earlier levels due to the deepening financial crisis and a previous strong quarter.
In its “Q3’09 Gold Demand Trends Report,” the WGC said that despite the third quarter dip, there was some improvement in non-western markets for jewellery, investment, and industrial demand. Precious metals consultancy GFMS compiled the report.
Greater China—comprising China, Hong Kong, and Taiwan—recorded a 10 per cent increase in tonnage compared to Q3’08. Consumer demand in Mainland China was up 12 per cent to year earlier levels, while jewellery demand saw an eight per cent growth in the 24-carat market as consumers looked to the metal for its wealth-preservation characteristics. Retail investment was up by 30 per cent compared to Q3’08.
India, the world’s largest consumer of gold, saw jewellery demand increase by 27 per cent for the quarter, due in part to seasonal influences. Compared to year earlier levels, jewellery demand tumbled 42 per cent during the third quarter, while net retail investment plummeted 67 per cent.
In the U.S. market, jewellery demand continued to be weak. While there were some signs of economic recovery, the WGC says uncertainty prevails and consumers are continuing to keep a close eye on discretionary spending.
“The outlook for investment is positive overall, with absolute levels of demand likely to remain well-supported by continued economic and currency uncertainty, inflation concerns, and the search for diversification,” said WGC chief executive officer Aram Shishmanian. “In the official sector, we expect to see a continuing trend of central banks diversifying their dollar exposure in favour of the proven store of value represented by gold.”
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