 "Global gold demand dips 21% in Q3 to 869 tonne: WGC")
The overall demand for gold across the globe declined by 21% to 869 tonne during the third quarter of 2013, mainly on the account of Indian government's move to restrict the import of the yellow metal and the fall in gold ETF, according to World Gold Council.
"Overall gold demand in Q3 2013, was 869 tonnes, down 21%, from same period last year. However, demand remained strong across most countries and sectors.
"The exceptions were gold-backed ETFs (exchange traded ), which had net outflows of 119 tonnes this quarter, compared to 402 tonnes in Q2 2013, and India where the result of government intervention in the Indian gold market was to reduce demand by 71 tonnes this quarter," World Gold Council said in its Gold Demand Trend Q3 report here.
ETF investment demand is the notable exception, having weakened this year, the report said.
"Consistent with the first two quarters of 2013, the global gold market remains resilient, underpinned by the continued shift in demand from West to East, strong demand in consumer segment and solid central bank and technology sectors," WGC Managing Director, Investment, Marcus Grubb said.
The restrictions introduced by the Indian government on importing gold through official channels had the intended effect of substantially suppressing demand, with total gold consumption in India standing at 148 tonne in Q3, compared to 310 tonnes in Q2 of this year.
However, the strength of Indian demand in the first half of the year means that full year consumer demand is still on track to narrowly exceed the 2012 total, the report said.
One side effect of this was that while global recycling fell 11% compared to the same quarter in 2012, in India the figure increased more than five fold to 61 tonne, according to the report.
"The Indian government's restriction on imports to the country is obviously reflected in the official levels of demand this quarter, but it doesn't indicates that the appetite for gold is waning.
"We have seen some rise in demand in other countries, which have close links with India, some of which may be making its way back to the country through illicit channels, which have reopened in recent quarters following a long period of inactivity," Grubb pointed out.
Jewellery demand was particularly strong in China, where the figure reached 164 tonne, a rise of 29% compared to with the same period last year.
Robust growth in the jewellery sector was also seen in the Middle East, Turkey and, significantly, across South East Asia, beyond China.
After eight years of decline, the US jewellery market had its third consecutive quarter of growth with a shift to higher carat items signalling the re-emergence of aspiration and luxury as key drivers of gold jewellery in the US, the report has underlined.
Global demand for jewellery was 487 tonnes in the quarter, up 5% on last year. US jewellery demand increased by 14% - the highest third quarter jewellery demand figure since Q3 2009.
Investment in bar and coins saw robust demand, up 6% year on year to 304 tonne, according to the report.
There was a net outflow from ETFs of 119 tonnes, as investors adjusted their portfolios, while net central bank purchases totalled 93 tonnes, 17% down on Q3 2012. Central banks have now been net purchasers of gold for 11 consecutive quarters, said the report.
"Overall gold demand in Q3 2013, was 869 tonnes, down 21%, from same period last year. However, demand remained strong across most countries and sectors.
"The exceptions were gold-backed ETFs (exchange traded ), which had net outflows of 119 tonnes this quarter, compared to 402 tonnes in Q2 2013, and India where the result of government intervention in the Indian gold market was to reduce demand by 71 tonnes this quarter," World Gold Council said in its Gold Demand Trend Q3 report here.
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Taking the year as a whole so far, it said, the jewellery, bar and coin sectors are showing year-to-date increase, while technology demand remains robust.
ETF investment demand is the notable exception, having weakened this year, the report said.
"Consistent with the first two quarters of 2013, the global gold market remains resilient, underpinned by the continued shift in demand from West to East, strong demand in consumer segment and solid central bank and technology sectors," WGC Managing Director, Investment, Marcus Grubb said.
The restrictions introduced by the Indian government on importing gold through official channels had the intended effect of substantially suppressing demand, with total gold consumption in India standing at 148 tonne in Q3, compared to 310 tonnes in Q2 of this year.
However, the strength of Indian demand in the first half of the year means that full year consumer demand is still on track to narrowly exceed the 2012 total, the report said.
One side effect of this was that while global recycling fell 11% compared to the same quarter in 2012, in India the figure increased more than five fold to 61 tonne, according to the report.
"The Indian government's restriction on imports to the country is obviously reflected in the official levels of demand this quarter, but it doesn't indicates that the appetite for gold is waning.
"We have seen some rise in demand in other countries, which have close links with India, some of which may be making its way back to the country through illicit channels, which have reopened in recent quarters following a long period of inactivity," Grubb pointed out.
Jewellery demand was particularly strong in China, where the figure reached 164 tonne, a rise of 29% compared to with the same period last year.
Robust growth in the jewellery sector was also seen in the Middle East, Turkey and, significantly, across South East Asia, beyond China.
After eight years of decline, the US jewellery market had its third consecutive quarter of growth with a shift to higher carat items signalling the re-emergence of aspiration and luxury as key drivers of gold jewellery in the US, the report has underlined.
Global demand for jewellery was 487 tonnes in the quarter, up 5% on last year. US jewellery demand increased by 14% - the highest third quarter jewellery demand figure since Q3 2009.
Investment in bar and coins saw robust demand, up 6% year on year to 304 tonne, according to the report.
There was a net outflow from ETFs of 119 tonnes, as investors adjusted their portfolios, while net central bank purchases totalled 93 tonnes, 17% down on Q3 2012. Central banks have now been net purchasers of gold for 11 consecutive quarters, said the report.