Gold Demand Reaches Record High in Q3 2008

Source:

According to the World Gold Council, demand for gold jewellery has also been strong, especially in Asia.

Demand for gold reached a record high in dollar terms in the third quarter of this year at US$32 billion amid the turmoil in the financial markets.

According to the World Gold Council, demand for gold jewellery has also been strong, especially in Asia.

Marcus Grubb, managing director, Investment Research, World Gold Council, said: "Early Q4 numbers were quite strong in India; China looks quite strong as well. Of course, we are concerned that gold demand will reduce in Asia because of the effect of the recession and it's really starting to hit. So this will put pressure on jewellery demand, but we still think it will hold up quite well in Q4. It will hold up next year too certainly better than Western markets."

Jewellery demand accounts for about 60 per cent of total gold demand. China has already reported an 18 per cent increase in gold demand for the third quarter, bolstered by its increasingly affluent population.

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