Global gold demand up in July-Sept; India tops buyers chart
Increased buying of coin, bar and jewellery prompted by fall in price triggered an 8% surge in the global gold demand during July-September, with Indian jewellery consumers leading the charge, the World Gold Council said on Thursday. The gold demand climbed to 1,120.9 tonnes, it said, as bar and coin demand drove gains mainly due to bulk buying from central banks across the world. The demand for jewellery grew 6%. In India, the demand of the yellow metal was highest in the form of jewellery as compared to bar and coins. The demand increased by 15% in the last quarter to 211 tonnes, up 26.9 tonnes year-on-year and equal to the level of 2008. In this segment, India overtook China where the total consumption was recorded at 203 tonnes, up only 4%. “Indian consumers, famously price-savvy when it comes to gold, led the charge for jewellery. Demand was up by 15% (+26.9t) compared with Q3 2014. At 211.1 tonnes, demand almost equalled the previous peak of 213 tonnes from Q3 2008,” the Council said in its quarterly report on Gold Demand Trends. At the same time, Indian investors respond more cautiously to prices while buying bar and coin. The demand in these segments increased for the first time in four quarters, by a modest 6% year-on-year. “Bars and coin purchases, driven by pure investment motive, did not respond in the same way as jewellery as some investors expected the price to fall further,” it said. Demand witnessed an uptick during the period of lower prices from mid-July to mid-August, but the subsequent stock market slump had a negative impact. According to Alistair Hewitt, Head of Market Intelligence at the World Gold Council, “China and India remain the dominant figures in the global gold market, accounting for close to 45% of total demand. But what was particularly noticeable this quarter is that the consumer response to the price dip was a truly global occurance.” The investment demand across the globe also saw an increase of 27% during the last quarter and reached 230 tonnes. In the US market, the demand for bar and coin reached its highest in five years, up 207% to 33 tonnes. “There were significant gains in bar and coin demand in China and across Europe, but it was in the US where we saw the most dramatic growth, with US Mint Eagle sales reaching their highest level since Q2 2010,” Hewitt said.
November 12, 2015 | 4:46pm IST.
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