Gold demand totalled 929t in the third quarter, which proved to be a generally subdued quarter for the gold market. Jewellery demand softened by 4% year-on-year, but the comparison continues to be heavily influenced by the events in 2013. Longer term analysis shows a jewellery market in good health. Investment demand posted a 6% increase, reaching 204t, although a stable price caused investors to hold back. Central Banks added a further 92.8t to their coffers. Supply was down 7% in Q3; the volume of recycled gold continuing to shrink.
Gold Demand Trends
Gold Demand Trends Q3 2014
Published 13th November 2014
1 Available in English, Deutsch, Francais, 中文.
Managing Director, Investment Strategy
The World Gold Council's Gold Demand Trends (GDT) is the leading industry resource for data and opinion on world-wide gold demand. Our quarterly publication examines demand trends by sector and geography.
This section of the report considers the main themes to have emerged in global gold demand and supply during the third quarter of 2014.
- Jewellery: The third quarter saw 534.2t of gold jewellery consumed around the globe. The 4% year-on-year decline may suggest a weak market, but such comparisons are still heavily influenced by the events of last year. Longer term analysis shows a market in good health. Year-to-date volumes continue to extend the broad uptrend from the low seen in 2009.
- Investment: Quarterly volatility in the US$ gold price was among the lowest levels seen over the past two decades, both a cause and effect of the benign demand environment. The lack of a clear price signal, as well as continuing to digest last year’s demand surge, caused investors to hold back from buying gold.
- Technology: Demand for gold in all segments saw an identical 5% drop in the third quarter, with overall technology demand totalling 98t. Substitution to cheaper materials by fabricators and consumers continued to outweigh the positive influence of improved economic sentiment.
- Central Banks: Ongoing economic and geopolitical instability encouraged central banks to continue to seek the protection and diversification of gold. Net purchases of 92.8 tonnes in Q3 brought year-to-date net purchases to 335 tonnes, slightly higher than the same period of 2013 (324t).
- Supply: The broad themes surrounding gold supply during the first half of the year continued to play out in Q3. Recycling was well below last year’s levels, while mine production edged higher to exceed 800t for only the third time ever. Producers continue to show little appetite for hedging.
Key demand data
GDT Q3 2014 infographic
Demand statistics (in tonnes and value)
|2012||2013||2014||Q3'14 vs Q3'13|
|Total bar and coin demand||1,343.4||1,773.3||380.8||462.9||632.8||312.3||365.3||282.6||266.0||245.6||-21|
|Physical Bar demand||1,039.2||1,388.5||297.5||356.5||502.2||254.2||275.6||222.7||204.8||185.7||-27|
|ETFs & similar products1||279.1||-880.0||88.1||-176.5||-402.2||-120.2||-181.0||-2.6||-39.9||-41.3||-|
|Central bank net purchases||544.1||409.3||150.4||130.8||92.1||101.5||85.0||124.3||117.8||92.8||-9|
|London pm fix, $/oz||1,669.0||1,411.2||1,721.8||1,631.8||1,414.8||1,326.3||1,276.2||1,293.1||1,288.4||1,281.9||-3|
|2012||2013||2014||Q3'14 vs Q3'13|
|Total bar and coin demand||72,088||80,459||21,081||24,284||28,786||13,316||14,989||11,748||11,018||10,123||-24|
|Physical Bar demand||55,760||62,999||16,471||18,705||22,843||10,837||11,308||9,256||8,485||7,655||-29|
|ETFs & similar products1||14,975||-39,927||4,879||-9,261||-18,297||-5,128||-7,425||-107||-1,654||-1,700||-|
|Central bank net purchases||29,193||18,572||8,323||6,863||4,187||4,326||3,488||5,166||4,879||3,825||-12|
1Exchange Traded Funds and similar products including: Gold Bullion Securities (London), Gold Bullion Securities (Australia), GLD® (formerly streetTRACKS Gold Shares), NewGold Gold Debentures, iShares Comex Gold Trust, ZKB Gold ETF, GOLDIST, ETF Securities Physical Gold, ETF Securities (Tokyo), ETF Securities (NYSE), XETRA-GOLD, Julius Baer Physical Gold, Central Fund of Canada and Central Gold Trust, Swiss Gold, iShares Gold Bullion Fund (formerly Claymore Gold Bullion ETF), Sprott Physical Gold Trust, ETF Securities Glitter, Mitsubishi Physical Gold ETF, CS ETF II (formerly Credit Suisse Xmtch) and Dubai Gold Securities.
Source: GFMS, Thomson Reuters; The London Gold Market Fixing Ltd; World Gold Council
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Data on the supply and demand for gold is compiled by GFMS, Thomson Reuters. The company provides a number of tables exclusively for the World Gold Council. Please refer to the notes and copyright information for details regarding the restrictions on disseminating these data. GFMS, Thomson Reuters should be contacted for further information or for historical data. In addition, certain data is available on Bloomberg.
Compare consumer demand by region, category and time period in the Regional analysis section.
Gold Demand Trends Q3 2014 video
Marcus Grubb, Managing Director Investment Strategy, talks through the findings from the Q3 2014 Gold Demand Trends report.