Gold Demand Remains Strong As Buying Records Continue To Tumble
Thursday, 16 May 2013
Gold fell $32.70 or -2.29% yesterday to $1,392.70/oz and silver slid to $22.50 and finished – 3.55%.
There are no surprises in the latest World Gold Council Gold Demand Trends report other than the fact that statistics show global demand for gold in Q1 2013 was on the increase before the COMEX raid on April 15th. This is a clear indication that the fundamentals supporting a strong price for gold in the long term remain and also helps to explain why there was such a shortage of gold bars and coins in the weeks after April 15th.
The statistics speak for themselves:
1. Jewellery demand was up 12% year-on-year; China returned a 19% increase on the same period last year, India and Middle East at 15%, and interestingly the US at 6%, its first increase since 2005.
2. Demand for gold bars and coins were up in all markets; 22% year-on-year in China and 52% in India and 43% in the US.
3. Central Banks continued their gold purchasing programme for the seventh consecutive quarter purchasing over 100 tons. The sector accounted for 11% of demand worth $5.7bn with volumes concentrated in emerging markets.
4. Though it was 4% down the previous year, demand in the technology sector once again surpassed 100t for the quarter demand in Q1 2013.