The World Gold Council has released it 1st Quarter report on global demand trends. From the press release:
In value terms, gold demand in Q1 2014 was US$45bn, down 21% compared to Q1 2013. The average gold price of US$1,293/oz was down 21% on the average Q1 2013 price.
The key findings from the report are as follows:
· Total global jewellery demand was 571t in the first quarter, a rise of 3% on the same quarter last year, as consumers continued to be the dominant drivers of the demand for gold.
· Total investment demand was 282t, compared to 288t in the same quarter the previous year. Demand for bars and coins fell 39% from the previous year to 283t. However this coincided with the first rise in the quarterly average gold price seen since Q4 2012, which encouraged private investors to wait for clearer signs about the longer term path of the price of gold before deciding on their investment strategy.
· ETF outflows were just 0.2t, a fraction of the outflows seen in Q1 2013.
· Q1 2014 saw central bank net purchases again top 100t. This is the 13th consecutive quarter in which central banks have been net purchasers as they diversify their assets. Central bank net purchases were 122t in Q1 2014, 6% lower than a year ago.
· Taken together, the figures demonstrate that the core fundamentals of the market remain in place following an exceptional 2013.
Gold demand and supply statistics for Q1 2014
· Q1 gold demand of 1,074t was fractionally lower than the 1,077t seen in Q1 2013
· ETF outflows slowed to just 0.2t. With demand for bars and coins totalling 283t, this means overall investment demand was 282t, a 2% fall on Q1 2013
· Demand in the jewellery sector was up 3% to 571t. Jewellery demand in China was up 10% to 203t, while demand in India fell 9% to 146t
· Demand in the technology sector was 99t for the quarter, down 4% compared to the previous year
· Q1 2014 mine production was up 6% on last year at 721t. Recycling fell 13% resulting in total gold supply that was 1% higher than a year ago at 1,048t
· Net central bank purchases totalled 122t, 6% lower than a year ago, making this the 13th consecutive quarter in which central banks have been net purchasers of gold
· Gold demand in value terms in Q1 2014 was US$45bn, down 21% on last year
· The Q1 2014 average gold price was US$1,293/oz, down 21% on the year before