The World Gold Council reported that the gold market remains resilient and the long-term demand trends remain firmly in place. Total gold demand during Q1 of 2014 was 1074t, nearly unchanged versus the same period in 2013. Gold jewellery demand totals 571t in Q1, biggest start to year since 2005!
Jewellery demand grew 3% year-on-year to reach 571t, the largest Q1 volume since 2005, as consumers responded positively to lower average gold prices. Geographically, demand was wide-spread; however it was China that posted the largest volume increase, rising by 18 tones or 10% from Q1 2013.
Shifts in the components of investment cancel out: net investment demand little changed, down 2%.
First quarter investment demand of 282t was just 6 tonnes below Q1 2013. Bar and coin demand was down 39% from last year's elevated levels, while outflows from ETFs slowed to a virtual halt compared with outflows of 177t in Q1 last year.
Central bank demand remains strong; net purchases reach 122t in Q1.
First quarter demand from central banks once again topped the 100t level, and marked the 13th consecutive quarter of net purchases. The desire to diversify holdings in an uncertain global environment continues to underpin this source of demand.
Gold supply totaled 1,048t; increased mine production offset by lower recycled gold.
The supply of gold in Q1 2014 saw a marginal year-on-year increase of 1%. Increased mine production was offset by a fall in recycled gold coming onto the market, leading to a total supply figure of 1,048t.