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Marcus Grubb, Managing Director, Investment, World Gold Council
Marcus Grubb, Managing Director, Investment, World Gold Council
Global Demand Trends by Sector and Segment
Global Demand Trends by Sector and Segment
Global Demand Trends by Region
Global Demand Trends by Region

Global demand for gold jewellery up 12% in Q1 2013 driven by significant increases in India and China

London, May 16, 2013 /PRNewswire/ — The latest World Gold Council Gold Demand Trends report, which reports on the period January-March 2013, shows a market driven by diverse global demand, and an appetite for owning gold jewellery that continues to grow.

Total jewellery demand was up 12% year-on-year in Q1 2013, driven in the main by Asian markets. Jewellery demand in China was up 19% on the same period last year and stood at a record 185 tonnes(t). Demand in both India and the Middle East was up 15% respectively and in the US, demand showed a significant increase, 6%, for the first time since 2005.

Demand for gold in China and India was also driven by an increase in bar and coin sales – up 22% year-on-year in China and 52% in India. In the US demand for bars and coins was up 43% compared with the same quarter in 2012. Globally, bar investment was up 8% while official coins (such as American Eagles and Canadian Maple Leafs) were up 18%. Gold held by gold-backed ETFs, which in 2012 accounted for 6% of the world’s gold demand, fell by 177t.

Central Banks remained significant acquirers of gold, making purchases in excess of 100t (109t) for the seventh consecutive quarter.

Overall total global demand for gold in Q1 2013 was 963t, down 19% from Q4 2012.

Marcus Grubb, Managing Director, Investment at the World Gold Council commented:
“The price drop in April, fuelled by non-physical moves in the market, proved to be the catalyst for a surge of buying that has left many retailers short of stock and refineries introducing waiting lists for deliveries. Putting this into context, sales of bars and coins, jewellery and consumption in the technology sector still make up 81% of the market.

“What these figures show is that even before the events of April, the fundamentals of the gold market remain robust with growing demand in India and China, central banks consistently adding gold to their reserves and strong buying of investment products such as gold bars and coins.”

In value terms, gold demand in Q1 2013 was US$51bn, down 23% compared to Q4 2012. The average gold price of US$1,632/oz was down 5% on the average Q4 2012 price, and down 3% on the same period the previous year.

The key findings from the report are as follows:

Marcus Grubb, Managing Director, Investment, at the World Gold Council commented further:
“Gold-backed ETFs, which made up 6% of gold demand in 2012, have seen some holders, primarily in the US, collect profits and move into equities. While gold ETF holdings are down, this has been balanced by 378t of investment in bars and coins, an increase of 10% on the same period last year, and up 12% on Q4 2012.

“Overall, the long-term appetite for investment remains strong, demonstrated by the continued demand for bars and coins.”

Gold demand and supply statistics for Q1 2013

The Q1 2013 Gold Demand Trends report, which includes comprehensive data provided by Thomson Reuters GFMS, can be viewed at www.gold.org/media and on our iPad app which can be downloaded from www.itunes.com, and a video can be seen here.

You can follow the World Gold Council on Twitter at @goldcouncil and Like on Facebook.

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.

For further information please contact:
James Murray
World Gold Council
+44 (0) 207 826 4754
james.murray@gold.org

David Schraeder
World Gold Council
(212) 317-3816
david.schraeder@gold.org

Elizabeth Roche
Edelman
(202) 777-3846
elizabeth.roche@edelman.com