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Marcus Grubb, Managing Director, Investment, World Gold Council
Marcus Grubb, Managing Director, Investment, World Gold Council
Explore Where Global Gold Demand Is
Explore Where Global Gold Demand Is

Gold’s performance reflects continued challenging economic climate

London, August 16, 2012 /PRNewswire/ — Global gold demand in Q2 2012 was 990.0 tonnes (t), down 7% from the 1,065.8t in Q2 2011 according to the World Gold Council’s Gold Demand Trends report.  This dip in demand was partly due to the comparison with exceptional demand last year, and also reflects the challenging global economic climate. In this context, gold performed as expected, acting as both a store of value and a source of liquidity.

In value terms gold demand remained relatively stable year on year at US$51.2 billion, compared to US$51.6 billion in Q2 2011. During the quarter, the average price of gold was US$1609.49 per ounce, 7% higher than the average for Q2 2011.

The key findings from the report are as follows:

Marcus Grubb, Managing Director, Investment at the World Gold Council said:

“Gold’s performance reflects the continuing challenging economic climate. A softness in India and China, who between them represent over 45% of the total second quarter jewellery and investment demand accounts for much of the slowing of global gold demand.

“However, through all the uncertainty, it is clear that gold’s fundamental properties as a vehicle for capital preservation and a source of liquidity continue to endure. This is evident from the activity of central banks, the ultimate long term investors, which continue to increase their gold holdings to diversify reserves and protect against reliance on one or more foreign currencies. 

Gold demand and supply statistics for Q2 2012:

The Q2 2012 Gold Demand Trends report, which includes comprehensive data provided by Thomson Reuters GFMS, can be viewed at: www.gold.org/media

For further information please contact:

Melissa McVeigh
World Gold Council
T +44 207826 4754
E melissa.mcveigh@gold.org

Quintin Keanie
Capital MSL
T +44 20 7255 5154
E quintin.keanie@capitalmsl.com

Note to editors:

World Gold Council
The World Gold Council is the market development organisation for the gold industry. Working within the investment, jewellery and technology sectors, as well as engaging in government affairs, our purpose is to provide industry leadership, whilst stimulating and sustaining demand for gold.

We develop gold-backed solutions, services and markets, based on true market insight. As a result, we create structural shifts in demand for gold across key market sectors.

We provide insights into the international gold markets, helping people to better understand the wealth preservation qualities of gold and its role in meeting the social and environmental needs of society.

Based in the UK, with operations in India, the Far East, Europe and the US, the World Gold Council is an association whose members include the world’s leading and most forward thinking gold mining companies.