LONDON ? Demand for gold will remain strong in 2010 due to the acceleration of demand from India and China, and increasing global demand for investment driven by the continuing uncertainty about the debt and economic recovery, the World Gold Council (WGC ?) said.
According to the WGC?s Gold Demand Trends Report for Q2 2010, published today, the demand for gold for the remainder of 2010 are supported by the following forces:
? India and China will continue to outline the offer overall growth in demand for gold jewelry in particular, for remainder of 2010. ? Retail investment will continue to be a major source of gold demand in Europe. ? In the longer term, demand for gold in China is expected to grow significantly. A report recently published by The People?s Bank of China and five other organizations to promote the development of domestic gold market will add impetus to the growth in gold property among Chinese consumers. ? Electronics is the demand likely to return to historical levels higher After the sector exhibited further signs of recovery, especially in the U.S. and Japan.
Marcus Grubb, Managing Director, WGC investment in the comments:
?Economic uncertainty and the continuing search for less volatile and more diversified assets such as gold, the investment demand for gold in the near future to support. Moreover, in light of continuing concerns about the government and the euro, the European small investor demand has increased.
?During the quarter, demand for gold jewelry in key Asian markets is challenged by rising local prices. Nevertheless, we see a slowdown in the pace of decline in demand, a strong outlook for the current recovery in critical market segment. ?
Global demand for Q2 2010 STATISTICS
? Total gold demand [1] 2010-1050 tonnes in Q2 increased by 36%, largely due to strong demand for gold investment compared to the second quarter of 2009. In U.S. $ value, demand increased 77% to $ 40.4 billion. ? Investment demand [2] was the strongest performing segment during the second quarter, up from 118% to 534.4 tonnes compared with 245.4 tonnes in Q2 2009. ? The main contributor to this increase came from the Foundation segment of the investment demand, which grew by 414% to 291.3 tonnes, the second highest quarter on record. ? Physical gold bar demand, which largely relates to the non-western markets, rose 29% from Q2 2009 to 96.3 tonnes. ? Global jewelry demand remained robust in Q2 2010. In face of rising price levels, consumption 408.7 tonnes during the second quarter of 2010, only 5% below the level a year earlier. ? Demand for gold jewelry in India, the largest market for jewelry, was little changed from last year?s level, a decrease of only 2% to 123.0 tonnes. Expressed in local currencies, this translates into an increase of 20% of the value Demand for Rp216 billion. ? China saw the demand for gold jewelry to increase by 5% to 75.4 t [3]. While growth in demand in tonnage was hampered by extreme weather, growth in local currency measure of demand was 35% to RMB 19.8 billion. ? With the return of demand for consumer electronics, industrial demand grew by 14% to 107.2 tonnes, compared to Q2 2009.
Marcus Grubb added:
?While many investors turned to gold as a? flight to quality ?in response to the uncertain financial climate, it is important proven resilient even a sense of optimism began to return to certain sectors of the investment community. In addition to the ETF market and physical bar and coin market, gold demand by Internet-based platforms, investment is likely to further sources of investment demand to supply. ?
