Record Gold Demand in Q2 - World Gold Council
Source: Mineweb (8/13/08)
The latest edition of "Gold Demand Trends", published by the World Gold Council, using figures compiled by independent research house GFMS Ltd., records that global dollar demand for gold in the second quarter of this year reached US$21.2 billion This is a new record and is some 9% above the level recorded in the second quarter of 2007. Investment demand led the charge with an increase of 29% at $3.5 billion in the quarter.
High and volatile prices had a deleterious effect on tonnage, however, with global demand falling by 107 tonnes or 19% against the second quarter of 2007 to 735.6 tonnes, thus extending a decline in volume demand that began in the fourth quarter of 2007. Jewellery demand was particularly affected, falling by 159 tonnes or 23% to 504 tonnes, with the situation worsened by the global credit squeeze and growing inflationary pressures, which impinged on consumer spending. India was responsible for two-thirds of the fall in jewellery demand. The global jewellery market did, however, recover from the depressed levels of the first quarter of this year, rising by 59.7 tonnes or 13.4%.
Identifiable investment demand world-wide was more resilient than jewellery, but was slightly softer on an absolute tonnage basis, falling by 11.6 tonnes or 4% against the second quarter of 2007 as some investors took profits, despite the fact that a number of markets turned to gold due to its investment attributes as a safe haven in times of rising inflation and unstable equity markets...