World Council – Gold Price Demand Trends Spike, Will It Hold?

Gold is appearing to recover from the US Financial Crisis, but is it permanent?


US Gold Eagle Coin Sales 2015

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Third quarter gold demand rose by 8% year-on-year, reaching a two-year high of 1,120.9 tonnes. Q3 2015 was a period of two distinct halves: ETF outflows contributed to a price dip in July, which boosted consumer demand around the world. Subsequently, a positive shift in institutional investor attitudes led to modest ETF inflows in August and September, which pushed prices back up. Central banks bought another 175.0 tonnes, in recognition of gold’s diversification benefits.

Some of the key findings from the report are as follows:

  • Overall demand increased by 8% year-on-year to 1,121t as a number of factors, including ETF outflows, contributed to a price dip which buoyed consumer demand around the world.
  • Total consumer demand – made up of jewellery demand and coin and bar demand – totalled 928t, up 14%.
  • Global investment demand saw a significant rise of 27% to 230t, up from 181t in Q3 2014. This was led by the US which saw a surge in bar and coin demand, up 207% to 33t from 11t on the same period last year, with support from China, up 70% to 52t and Europe up 35% to 61t.
  • Global jewellery demand for Q3 2015 was up 6% year-on-year to 632t compared to 594t in Q3 2014. In India, demand was up 15% to 211t and China was up 4% to 188t. The US and the Middle East also saw gains, up 2% to 26t and 8% to 56t respectively.
  • Central bank demand reached 175t, the 19th consecutive quarter of net purchases.

Gold is appearing to recover from the US Financial Crisis

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