Lower Gold Prices Boosted Demand For Jewelry in 2013, Says WGC

(IDEX Online News) – Last year saw the largest volume increase in jewelry demand for 16 years as consumers across the globe reacted to lower gold prices, according to The World Gold Council's Gold Demand Trends (GDT) report.

Full year demand was 2,209.5 tons, 17 percent above 2012 and the highest level since the 2008 financial crisis.

In investment, 2013 was a year of contrast between the different elements of gold investment. Demand for bars and coins surged to an all-time high of 1,654.1 tons as individual investors took advantage of lower prices, while large-scale selling of more tactical ETF positions by western investors generated outflows of 880.8 tons.

Meanwhile, annual demand for gold used in technology stabilized at 404.8 tons, from 407.5 tons in 2012. The lower price environment and improved global economic outlook was supportive for gold used in a range of applications in the sector, the WGC said.

Net purchases by central banks increased global official gold reserves by 368.6 tons, with 2013 being the fourth consecutive year of net purchases, albeit at a slightly reduced pace due to the environment of heightened gold volatility and slower foreign reserve accumulation.

In 2013 the supply of gold declined 2 percent to 4,339.9 tons as a drop in recycling activity (in response to lower gold prices) more than offset growth in mine production.

The full report can be accessed here