Congo’s South Kivu governor suspends mining operations in province
The decision will hit artisanal miners of metals such as gold and tin hard, as they are the region's dominant producers.
The World Gold Council (WGC), an industry group, announced Thursday that global gold demand fell 11% year on year to 1,084.6 tonnes in the third quarter.
The sharp decline – albeit from record levels during the same quarter 2011 – came as a result of a decrease in investor interest in gold bars and coins and a decline in China’s gold consumption.
Global investment demand for gold decreased 16% to 429.9 tonnes compare to the same period last year the same period – demand for gold bars and coins fell a staggering 30% year-on-year to 293.9 tonnes.
China’s gold demand was down 8% to 176.8 tonnes. China’s demand for gold for jewelry and investment fell 6% and 12% respectively.
The only bright spots in the report were India’s gold demand which is showing signs of recovery and increased 9% to 223.1 tonnes while demand from exchange traded funds remained very robust.
Gold consumption by both China and India accounted for 37% of world gold demand in 3Q 2012.
Global public sectors including central banks purchased 97.6 tonnes of gold, down 31% although WGC points out that in six out of the last seven quarters, central bank demand has been around 100 tonnes which is a sharp increase from as recently as 2010.
The WGC expects gold demand from public sectors globally to be between 450 tonnes and 500 tonnes in 2012.
Global demand for gold for jewelry declined 2% YoY to 448.8 tonnes.
Global demand for gold from the technology industry fell 6% YoY to 108.2 tonnes.
Global gold production decreased 2% YoY to 1,188.3 tonnes.
Output from gold mines across the world fell 1% YoY to 731.6 tonnes.
Gold futures were last trading at $1.716 an ounce, down $16 or almost 1% on the news.
Click here for the full report >>
Image by GoldMoneyNews
Comments
Leonard Herman
Isn’t the World Gold Council headed by Aram Shishmanian, a former partner and head of global financial markets practice at Accenture (formerly Anderson). That company became a household name after the Enron fiasco which took place during Mr. Shishmanian’s tenure. But I am sure that if they say bullion sales have dropped off a cliff, despite all the evidence to the contrary, it must be so.