Notwithstanding the sluggish economy through-out the world, Gold hit record demand levels as per report released by World Gold Council. In value terms, gold demand in 2012 was USD 236.4 billion – an all-time high. In final fourth quarter of 2012, Gold demand in was 6% higher year-on-year at USD 66.2 billion, marking the highest ever Q4 total.
In Q4, 2012 global gold demand was was 1,195.9 tonnes, increase of about 4% compared to same quarter the previous year. In Q4 2012, the average gold price reached a record level of USD 1,721.8 per ounce, up 1% and the average price during whole of 2012 was USD 1,669.0 per ounce, up 6% from USD 1,571.5 per ounce in 2011.
Gold Demand in India
China and India are the global gold power houses, that too by a very large margin and despite challenging domestic economic conditions, both countries saw increase in demand in Q4, 2012.
In India, though the gold demand for full year was down 12% compared to previous year, it performed strongly in the final quarter with total demand at 261.9 t, an increase of 41% on the same period last year.
As you can see from the chart above, India and China are the largest consumers of Gold. India alone accounts for more than one-fifth of world’s gold consumption.
Gold Demand Key Findings
- In India, demand for jewellery was up 35% year-on-year to reach 153.0 tonnes
- Gold investment buying accounted for 108.9 tonnes in India.
- Globally, the Investment demand (the sum of ETFs and total bar and coin demand) was 424.7 tonnes, down 8% compared to the same quarter last year, but was 19% above the five year quarterly average
- Overall, demand in the jewellery sector was up 11 percent to 525.3 tonnes compared to 472.4 tonnes in the same quarter in 2011.
- Technology gold demand for the full year in 2012 was down 5% on 2011 in tonnage terms.
- Supply of gold from mines was up 2% year-on-year, while recycling was down 5% against the same period.
- Central bank Gold buying for the full year rose by 17% compared to 2011, totaling 534.6 tonnes, the highest level since 1964.
Visit World Gold Council Website for full detailed report.