According to the World Gold Council:
Gold demand reached 1,290 tonnes Q1 2016, a 21% increase year-on-year, making it the second largest quarter on record. This increase was driven by huge inflows into exchange traded funds (ETFs) – 364t – fuelled by concerns around the shifting global economic and financial landscape. Higher prices and industrial action in India pushed global demand for jewellery down (-19%), while total bar and coin demand was marginally higher (+1%). Central banks remained strong buyers, purchasing 109t in the quarter. Total supply increased 5% to 1,135t. Hedging by producers (40t) supported an increase of 56t in mine supply, although countered by a marginal decline in recycling.
The key findings from the report for the first quarter of 2016 are as follows:
- Overall demand for Q1 2016 increased by 21% to 1,290t, up from 1,070t in Q1 2015.
- Total consumer demand was 736t down 13% compared to 849t in Q1 2015.
- Global investment demand was 618t, up 122% from 278t in the same period last year.
- Global jewellery demand fell 19% to 482t versus 597t in the first quarter of 2015.
- Central bank demand dipped slightly to 109t in Q1 2016, compared to 112t in the same period last year.
- Demand in the technology sector fell 3% to 81t in Q1 2016.
- Total supply was up 5% to 1,135t in Q1 2016, from 1,081t in the first quarter of 2015. Mine supply was up 8% to 774t.
By: Douglas A. McIntyre (24/7 Wall Street).
Photo: Karus Chains.
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
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