India and China make up 45% of total gold demand in Q3’15: WGC

The World Gold Council’s Gold Demand Trends Q3 2015 report noted that “the consumer response to the price dip was a truly global occurance”, as per Alistair Hewitt, Head of Market Intelligence at the World Gold Council. The third quarter of 2015 saw global gold jewellery demand performing better than the corresponding quarter last year, with a 6 percent increase on y-o-y basis to 632t compared to 594t in Q3 2014. India’s demand was at 211t up 15 percent and China’s demand rising 4 percent to 188t. The US and the Middle East also saw gains, up 2 percent to 26t and 8 percent to 56t respectively.

Alistair Hewitt, further noted that “China and India remain the dominant figures in the global gold market, accounting for close to 45 percent of total demand. But what was particularly noticeable this quarter is that the consumer response to the price dip was a truly global occurance. There were significant gains in bar and coin demand in China and across Europe, but it was in the US where we saw the most dramatic growth, with US Mint Eagle sales reaching their highest level since Q2 2010. Global jewellery demand also picked up, in what is traditionally a quiet time of the year for jewellery demand.”

Global gold demand increased 8 percent on y-o-y basis in Q3 2015 to 1,121 tonne as per the report. The report consisted of two distinct halves. In the first part, a number of factors, including ETF outflows, contributed to a price dip which buoyed consumer demand around the world. A shift in tactical investor positions in the latter part of the quarter led to modest ETF inflows in August and September, which helped to push prices back up. Consumer demand saw some optimism, with a 14 percent increase to 928t, with consumers buying jewellery, coins and bars.

Global investment demand rose by a whooping 27 percent to 230t, up from 181t in Q3 2014, mainly led by the US which saw a surge in bar and coin demand, up 207 percent to 33t from 11t on the same period last year, with support from China, up 70 percent to 52t. Europe’d gold investment demand rose strongly following ongoing concerns surrounding the Greek debt crisis and uncertainty in Eastern Europe, pushed investment demand in gold to 61t, up 35 percent.

Alistair Hewitt also mentioned that, “Separately, purchases by the central banks almost equalled the Q3 2014 record as gold’s diversification benefits continue to be recognised. The increased transparency that comes from the publication of China’s reserve data is a welcome addition to the market – although Russia still remains the most significant buyer. These factors combined, illustrate the diversity of gold demand and the broad range of factors that underpin it.”

Total gold supply was marginally higher year-on-year up 1% at 1,100t.