Consumer demand for gold in third quarter 2013 remained strong, after reaching record levels in the earlier period, the World Gold Council study reports. Depletion of western investors’ ETF positions during the year continued unabated although Central banks, Russia’s being among the largest consumers, continued to add gold to reserves but at a slower rate.
“The third quarter saw a 21% contraction in gold demand from the third quarter of 2012, to 868.5 tonnes (t). Outflows from ETF positions, although much slower in pace than the previous quarter, were the main reason for the weaker quarterly total,” the WGC notes.
Gold demand in the third quarter represented the first Q2-Q3 drop since 2007 because the decline in prices during the earlier quarter generated bargain hunting that failed to carry over into the next period when in fact prices moved higher. So far in 2013, two themes have emerged according to the WGC: the rising level of consumer demand offsetting outflows from ETFs and the geographic flow of gold from western to eastern markets.
For further details concerning gold demand trends in Q3 2013 from the World Gold Council study click here.