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The global gold demand in 2013 declined by 15 per cent to 3,756 tonnes compared to 2012, mainly due to large-scale outflows from electronic traded funds (ETFs) to the equity markets, according to the World Gold Council report.
In 2012, the global gold demand stood at 4,415.8 tonnes, the WGC ‘Gold Demand Trends 2013’ report said.
There was a net outflow from ETFs of 180 tonnes in Q4 as investors continued to re-evaluate their portfolios in response to market conditions.
Overall, investors redeemed 881 tonnes from ETFs in the full year, the report said.
However, the gold market saw a 21 per cent growth in demand from consumers, the report said.
“2013 has been a strong year for gold demand across sectors and geographies, with the exception of western ETF markets. Specifically, it was the year of the consumer.
“Although demand has continued its shift from west to east, the growing demand for gold bars, coins and jewellery is a global phenomenon,” WGC Managing Director, Investment Strategy, Marcus Grubb, said in a release issued here.
Jewellery demand for the year rose 17 per cent to 2,209 tonnes, while investment in bars and coins was up 28 per cent to 1,654 tonnes.
China and India both recorded increased demand in 2013, while consumer demand in China rose 32 per cent to a record 1,066 tonnes, in India demand rose 13 per cent to 975 tonnes.
The report further said across the world there was huge rise in consumer appetite for gold in both emerging and developed markets.
Demand in Turkey was up 60 per cent, Thailand up 73 per cent and the US up 18 per cent.
The sustained environment of lower prices, coupled with improving consumer sentiment and the onset of the main Q4 buying season resulted in a pick-up across a number of western markets, the report said.
Annual imports of gold jewellery into the US increased for the first time since 2005, with significant volume increases in imports from India, China and Italy.
The report further said central banks continued to be strong buyers of gold and saw net purchases in all four quarters totalling 369 tonnes in 2013, even as it was down by 32 per cent from 2012.
The total supply for the year declined by two per cent to 4,340 tonnes compared to 2012.
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