Gold demand climbed in Q3 2015 as consumers across the globe capitalised on buying opportunity

Alistair Hewitt, Head of Market Intelligence at the World Gold Council, said:

“China and India remain the dominant figures in the global gold market, accounting for close to 45% of total demand. But what was particularly noticeable this quarter is that the consumer response to the price dip was a truly global occurrence. There were significant gains in bar and coin demand in China and across Europe, but it was in the US where we saw the most dramatic growth, with US Mint Eagle sales reaching their highest level since Q2 2010. Global jewellery demand also picked up, in what is traditionally a quiet time of the year for jewellery demand.

Separately, purchases by the central banks almost equalled the Q3 2014 record as gold’s diversification benefits continue to be recognised. The increased transparency that comes from the publication of China’s reserve data is a welcome addition to the market – although Russia still remains the most significant buyer. These factors combined, illustrate the diversity of gold demand and the broad range of factors that underpin it.”

Gold demand and supply statistics for Q3 2015

· Overall demand increased by 8% year-on-year to 1,121t.
· Total consumer demand – made up of jewellery demand and coin and bar demand – totalled 928t, up 14%.
· Global investment demand saw a significant rise of 27% to 230t, up from 181t in Q3 2014. This was led by the US which saw a surge in bar and coin demand, up 207% to 33t from 11t on the same period last year, with support from China, up 70% to 52t and Europe up 35% to 61t.
· Global jewellery demand for Q3 2015 was up 6% year-on-year to 632t compared to 594t in Q3 2014. In India, demand was up 15% to 211t and China was up 4% to 188t. The US and the Middle East also saw gains, up 2% to 26t and 8% to 56t respectively.
· Central bank demand reached 175t, the 19th consecutive quarter of net purchases.
· Demand in the technology sector declined 4% to 84t as the sector continued to endure pressure, with the industry choosing to shift towards alternative, cheaper materials in technological applications.
· Total supply was 1,100t in Q3, up 1% year-on-year. Total mine supply (mine production + net producer hedging) remained relatively flat up 3% year-on-year to 848t compared to 814t in the same period last year. Year-on-year quarterly mine production shrank by 1% to 828t in Q3 2015 against 836t in Q2 2014. Recycling levels were down 6% year-on-year to 252t compared to 268t in Q3 last year.