Abitibi Metals boosts resource by 62% at B26 polymetallic deposit in Quebec
Indicated resources increased to 11.3 million tonnes from 6.9 Mt.
Worldwide demand for gold in the second quarter of 2012 fell to 990.0t, down 7% in comparison to last year said the World Gold Council, which released its demand trends report on Thursday.
Gold’s soft spots were Indian and China.
In India, investment and jewellery demand fell to 181.3t, down from 294.5t in Q2 2011. Demand for gold in the country was weak due to record high prices for the metal, fears of inflation and concerns about a weak monsoon season.
“China’s investment and jewellery demand was 144.9t, down 7% from 156.6t in the same quarter last year,” writes the reports authors.
“Investment demand fell by 4% year-on-year to 51.1t as Chinese investors exercised restraint in response to the lack of direction exhibited by the gold price. The lack of sustained upward momentum in the gold price and the slowing of domestic GDP also discouraged consumers from buying gold jewellery, which saw a 9% year-on-year decline to 93.8t.”
India and China account for over 45% of the total demand for jewellery and investment
The demand for gold-oriented ETFs were mostly flat, while the jewellery sector took it on the chin.
“Demand in the jewellery sector of 418.3t was 15% lower than 490.6t in Q2 2011, excluding India and China jewellery demand was down by 4%.”
Investment demand was also off significantly.
“Investment demand fell by 23% year-on-year to 302.0t, slightly below the 5 year quarterly average of 340.3t. Excluding India and China, retail investment demand was up 16% year-on-year in tonnage terms.”
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PrimeValues.org
And it seems like QE3 had a weaker than predicted effect…
Now with the upcoming elections and the euro crash looming, the stronger dollar might push prices even lower…
But perhaps with stronger dollars and lower precious metal prices, China and India will pick up with the buying process – perhaps that’s when China will get rid of many of its dollars.