Gold
India and China lift gold jewellery demand
Posted November 23, 2010 | By Sonia Nair
India is leading the rise in global demand for gold jewellery, figures from the World Gold Council show.
Total gold demand rose 12 per cent from the third quarter of 2009 to 922 tonnes in the same period in 2010, according to the World Gold Council’s (WGC) 2010 third-quarter report.
Demand for gold jewellery increased 8 per cent against the same period the previous year. The top four performing markets – India, China, Russia and Turkey – accounted for 63 per cent of global demand.
India bought nearly 50 tonnes of gold jewellery during the period; a 36 per cent increase against the same period last year, while China increased its gold consumption by 16 per cent.
Marcus Grubb, managing director of investment at WGC, said, “Healthy gold demand growth in the third quarter occurred in the context of record international prices, demonstrating how consumers, particularly in India and China, are continuing to appreciate the enduring value of gold.”
The council regards India as the most significant gold jewellery market in the world. It predicts that gold jewellery demand will exceed that of 2009 this year.
Global demand for the 12-month period to September hit a record of US$137.5 billion ($139.4 billion).
Industrial demand for gold has risen to pre-GFC levels. This is in part due to a rise in gold-wired semi conductors, according to the Council.
Richard Holliday, director of industrial at the WGC, said, “The recovery of industrial gold demand to pre-crisis levels will continue to be sustained by the rise in demand in high-tech goods, such as the iPad and smart phones.”
The WGC attributed the trend to increasing demand in the world’s two largest markets, India and China, as well as rising income levels, high savings rates and strong economic growth contributing to increased consumption.
The global unease about currencies and fiscal imbalances has also contributed to higher investment in gold, it said.
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