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Message: DEMAND.... The big brother to supply

DEMAND.... The big brother to supply

posted on Nov 26, 2008 12:06PM

From the World Gold Council. Here are some of the highlights ...

  • Global demand rose 18% to 1,133.4 metric tonnes from 963.3 tonnes a year earlier.

  • In dollar terms, the jump in demand was even bigger. Dollar demand for gold reached an all time quarterly record of $32 billion in the third quarter, a whopping 45% higher than the previous record ... set in the second quarter.

  • Identifiable investment, which includes purchases through exchange traded funds and of bars and coins, climbed 56% year over year to 382.1 tonnes.

  • Retail investment blasted off. It rose 121% to 232 tonnes in the third quarter, with strong bar and coin buying reported in Swiss, German and U.S. markets. Gold inflows into ETFs surged to a record 150 tonnes. Gold ETFs added to their treasure troves at a rate that was 7.5% higher than the second quarter and up 31% from a year earlier.

  • Jewelry demand gained 7.6% to $18 billion. Jewelry demand in India soared by 65% in dollar terms. The Middle East, China and Indonesia all saw jewelry demand in dollar terms rise by 40% (10% to 15% in tonnage terms).

  • Sales to India, the world's largest gold consumer and jewelry buyer, jumped 29% to 249.5 tonnes from 190.8 tonnes. Meanwhile, demand increased by 18% in China and 15% in the Middle East.


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