The World Gold Council’s (WGC) latest quarterly recap shows global gold demand is getting stronger despite rising gold prices. Gold rose 28 percent to record the highest average price for a quarter ever at $1,226.75 an ounce while gold demand jumped 12 percent on a year-over-year basis to 921.8 tons during the quarter.
Jewelry demand, which increased 8 percent on a year-over-year basis, accounted for 57 percent of overall demand, while investment demand rose 19 percent to account for 31 percent of total demand. It appears consumers and investors, especially in India, China, Russia and Turkey, are growing accustomed to higher gold prices. At the end of the third quarter, gold demand in India had already exceeded that of 2009 and demand levels in China are ahead of last year’s pace.
The WGC says “these results demonstrate that consumers in these countries are becoming accustomed to high price ranges…and consumers are preferring to make gold jewelry purchases at current prices in order to avoid purchasing at higher prices in the future.” Investment demand rose despite a 7 percent decline in investment in ETFs, which has been the biggest driver in investment demand of late.
Chinese investors seeking protection from rising interest rates directed a considerable portion of their savings into gold products, causing demand for gold bars to jump 44 percent. Net retail investment in China reached 45 tons, breaking the previous record of 40 tons set in the first quarter of 2010.
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Thanks soros share your thought with us regarding gold.
ReplyDeleteI agree with u that coming months the price of gold becomes higher and higher, you have said that gold the ultimate bubble and it is true.
In your post we have seen that the demand of gold getting stronger instead of prices of gold.
The demand of gold in India has exceeded in the third quarter result, so that we can say that customers are interested to purchase the gold at hish prices also.
Online Jeweller