World Gold Council: China Demand for Gold Bars, Coins Surged 157Pct in Q208-16 18:00 Caijing
Recent falls in the gold prices have generated significant increases in demand, mostly notably from consumers in China and India, the World Gold Council said in its latest trend report for the second quarter.
Consumer demand in China continued to show strong growth, totaling 276 tonnes in the second quarter, a rise of 87 percent compared to the same quarter last year, as investors used the lower gold price to buy in advance of expected future price rises, the report said.
Jewellery demand in the quarter was 153 tonnes, up 54 percent on the same quarter last year, while bars and coin investment rose 157 percent to 123 tonnes.
Consumers in India also showed continued strong appetite for gold, with demand up 71 percent on last year. China and India are the world's two biggest gold markets.
Globally, jewellery demand was up 37 percent in the second quarter to 576 tonnes from 421 toones in the same quarter last year, reaching its highest level since the third quarter, 2008, according to the report.
For the tenth consecutive quarter, central banks were net buyers of gold, purchasing 71t, which reinforces the trend that began in Q1 2011.
"The second quarter continued the trend that we saw in the first, of a rebalancing in the market, as gold coming onto the market from ETF sales met with a wave of demand for bars and coins, as well as jewellery," said Marcus Grubb, Managing Director, Investment at the World Gold Council.
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