JOHANNESBURG (miningweekly.com) – Gold demand fell 21% in the three months to September 30, compared with the same period last year, the World Gold Council said on Thursday.
The council’s 'Gold Demand Trends' report put 2013 third-quarter demand at 868.5 t and supply at 1 145.5 t – a 277 t excess.
The average gold price for the quarter was $1 326/oz, 20% lower than in the third quarter of last year.
This pushed third-quarter gold value down to $37-billion – a drop of 37%.
Outflows of nearly 700 t from gold exchange traded funds (ETFs) in the West were partly balanced by the strong uptake of gold jewellery, bars and coins in the East.
“The growth we’re seeing in jewellery, bars and coins, in particular, demonstrates once again the unique diversity of gold demand,” World Gold Council MD investment Marcus Grubb commented, pointing to different market sectors increasing in prominence at different points in the global economic cycle.
Central banks were net buyers of gold for the eleventh consecutive quarter, purchasing 93 t, and technology demand remained stable at 103 t.
Third-quarter consumer demand in China grew 18% to 210 t and jewellery consumption outside China, in South East Asia, grew 28% in Hong Kong, 14% in Vietnam, 57% in Thailand and 19% in Indonesia.
Jewellery demand also rose 9% in the Middle East and 14% in the US.
However, Indian government restrictions on importing gold through official channels suppressed consumption to 148 t and caused Indian gold recycling to increase fivefold to 61 t.
Demand lifts in countries with close India links is, however, fuelling suspicion that gold is making its way into India along illicit channels.