WORLD gold demand fell 9% in the second quarter to 719.5 tons as rising prices and the impact of the global recession curbed jewellery consumption, the World Gold Council (WGC) said yesterday.
However, a sharp rise in identifiable investment demand to 222.4tons from 151.9 a year earlier limited the decline, while demand for gold-backed exchange-traded funds rose sharply year-on-year.
“The global economic downturn has certainly had a major impact on the purchasing power of gold consumers, as have high local prices and dollar volatility,” WGC chief executive Aram Shishmanian said.
However, he added: “Investment demand in particular witnessed a strong quarter, and we believe this indicates a growing recognition of gold as an important and independent asset class.”
Jewellery demand fell 22% year- on-year in the second quarter.
Overall, world gold supply was up 14% year-on-year to 927 tons from 812 tons, the WGC said. — The Times, Avusa Group News
