World Gold Council’s Gold Demand Trends report for Q3 2011 was released. "The increase in overall investment demand was all the more impressive given the sharp gold price correction in September, which encouraged a wave of profit taking among bar and coin investors. Virtually all markets saw strong double-digit growth in demand for gold bars and coins," said the World Gold Council in a statement. " /> World Gold Council’s Gold Demand Trends report for Q3 2011 was released. "The increase in overall investment demand was all the more impressive given the sharp gold price correction in September, which encouraged a wave of profit taking among bar and coin investors. Virtually all markets saw strong double-digit growth in demand for gold bars and coins," said the World Gold Council in a statement. " />
Due to euro jitters and the U.S. credit downgrade, investment demand in Europe for gold jumped 135% to a record quarterly value of €4.6 billion.
On Thursday the World Gold Council’s Gold Demand Trends report for Q3 2011 was released.
“The increase in overall investment demand was all the more impressive given the sharp gold price correction in September, which encouraged a wave of profit taking among bar and coin investors. Virtually all markets saw strong double-digit growth in demand for gold bars and coins,” said the World Gold Council in a statement.
Overall global gold demand was up six percent compared to the same period last year.
China was another bright spot for gold. Jewellery demand was 13 percent higher.
“The bulk of this increase was seen in smaller cities as retail chains expanded their networks to meet increasing demand fuelled by rising income levels. China’s growing appetite for gold as a means of investment saw demand for gold bars and coins expand by 24% from year earlier levels to 60.2 tonnes.”
Gold price volatility, however, weighed on the Indian market where jewellery demand tumbled 26%. The World Gold Council says that demand in 2011 up to September is similar to the same levels set in 2010.
“Unsurprisingly investment demand for gold was a key driver during the third quarter,” said Marcus Grubb, Managing Director, Investment at the World Gold Council.
“Increasing levels of inflation, the US credit rating downgrade, a worsening eurozone sovereign debt crisis and the lacklustre performance of many assets drove investors to increase holdings in gold in order to protect their wealth. Given gold’s proven risk mitigation properties, it is likely that investors will continue to seek protection from economic uncertainty, which shows no signs of abating.”
Comments
Simon linientreu
Given gold’s status as a non – paper fiat piece of confetti, demand may be expected to continue to rise, be it in a smooth or manic fashion.