JewelStruck Blog

According to the World Gold Council, Global gold demand saw an increase of 6% in third quarter 2011, compared to same period in last year. Gold demand in the third quarter of 2011 reached 1,053.9 tonnes equating to US$57.7bn, an all-time high in value terms.

Gold demand by category in tonnes and gold price

Marcus Grubb, Managing Director, Investment at the World Gold Council commented:

“Unsurprisingly investment demand for gold was a key driver during the third quarter. Increasing levels of inflation, the US credit rating downgrade, a worsening eurozone sovereign debt crisis and the lacklustre performance of many assets drove investors to increase holdings in gold in order to protect their wealth. Given gold’s proven risk mitigation properties, it is likely that investors will continue to seek protection from economic uncertainty, which shows no signs of abating.”

Gold demand by sector

India, the largest jewellery market, experienced a 26% fall in tonnage demand as high and volatile gold prices, at an inauspicious time in the Hindu calendar,15 deterred consumers. A similar reaction was seen across the globe, with markets in the Middle East, South East Asia and the West generating weaker levels of demand in the face of record high gold prices and difficult economic conditions. Exceptions were China, where gold jewellery demand continued on its healthy growth path, Hong Kong, Japan and Russia.

Jewellery demand by country, % change

Source: World Gold Council (http://www.gold.org)