March 29, 2024

2010 Third Quarter Gold Demand

Total identifiable gold demand for the third quarter showed an increase of 12% above year ago levels at 921.8 tonnes. Increases in demand from jewelry consumption, industrial sectors, and net retail investment more than offset a decline in demand from electronically traded funds, according to information published by the World Gold Council.

Compared to the 2010 second quarter, gold demand showed a decline of 10%. This was the result of the exceptionally high levels of investment demand experienced in the previous quarter.

During the third quarter, jewelery demand totaled 529.8 tonnes, representing an increase of 8% from the year ago period. Buyers in key markets such as Indian, China, Russia, and Hong Kong were not deterred by record high prices. The highest growth in demand was experienced in India, with an increase of 36%. With the recent focus of the media on gold investors, it’s interesting to note that more than half of identifiable gold demand comes from the jewelry sector.

Industrial demand for gold was 110.2 tonnes, marking an increase of 13% from the year ago period. Demand was led by electronics, which accounted for 77.9 tonnes and measured a gain of 18%. A decline in demand was experienced from the dentistry sector, with a drop of 7% to 12.2 tonnes.

Identifiable investment demand was up 19% from the year ago period at 281.8 tonnes. However, this did represent a decline of 16% from the previous quarter. The largest increase in demand for this category came from bar hoarding, which increased 44% to 132.4 tonnes. This is an interesting contrast to demand from ETFs which dropped 7% to 38.7 tonnes.

The average price of gold during the quarter was $1,226.75, ranging from a low of $1,157.00 to a high of $1,307.50 per ounce.

Identifiable Gold Demand (Source:GFMS)

Comments

  1. interesting is the increase – 13% ^^

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