Dollar demand for gold in the jewellery, retail investment and industrial sectors all reached new heights in the second quarter of 2007.
Global demand for gold jewellery showed the strongest surge, reaching a record $14.5 billion, 37% higher than Q2 2006, with particular strength across the key gold markets of Greater China, India, the Middle East and Turkey.
A return to more normal levels of gold price volatility, growing acceptance by consumers of a price that averaged 6% above the same period a year ago, and strong economic performances in the key consuming regions all helped gold to set records in the second quarter, according to Gold Demand Trends, released by the World Gold Council (WGC).
In tonnage terms India, the world's largest gold market, achieved all-time records in both jewellery and retail investment. Turkey achieved second-quarter records for both categories while Russia recorded its highest ever level of jewellery demand.
The figures, compiled independently for WGC by GFMS Ltd, showed that identifiable gold demand made a further substantial recovery in Q2 2007 from the impact of the volatile prices experienced in 2006, rising 19% in tonnage terms on Q2 2006 to 922 tonnes, and reaching $19.8 billion, a 27% increase, in value terms year-on-year.
James Burton, CEO of the World Gold Council, said: “We are pleased to report a very strong second quarter with demand for gold reaching unprecedented levels in a number of markets."
"A reduction in price volatility in 2007 has resulted in increased consumer confidence and, coupled with greater industry marketing activity, led to record levels of gold jewellery purchases globally in dollar terms. I am pleased to note that the dollar value of gold demand has more than doubled in just four years."
“Several countries stand out. The figures from India this quarter are particularly pleasing and we will continue to encourage India's ongoing love affair with gold.” At 317 tonnes, India's total demand for gold in Q2 2007 was equivalent to half the global mine output for the quarter.
marketing@alchempro.com
