World Gold Council 2Q 2013 report – Demand Surges

WGC have just released their data for the 2^nd quarter of 2013.  Their summary:

“The second quarter saw a continuation - and amplification - of Q1 trends: a multi-year high in the jewellery sector; China and India cementing their position as leading markets; contrast between different elements of investment demand; and a flow of gold from West to East” 

In a nutshell:

-      Total net demand of 856.3 tonne.  Bar and coin demand new quarterly record of 508 tonne (up 78%).  Jewellery demand 576 tonne (up 37%).  ETF outflows 400 tonne (ETF’s only 6% of world demand)

-      India (up 51%) and China (up 54%) accounted for nearly 60% of jewellery and 50% of coin and bars globally, the latter countering western ETF outflows. (Weak to Strong hands as we say…)

-      Total Global consumer demand 1083 tonne – up 53%

-      Central Banks continued 10^th consecutive quarter of net purchasers, though down on the record quarter in previous year.

-      Supply contracted 6% to 1025 tonne (notably again less than demand…)