Gold Demand Trends

Gold Demand Trends Full Year 2014

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Categories: Supply and demand, Jewellery, Investment, Technology, Reserve asset management

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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. 

Executive summary:
This section of the report considers the main themes to have emerged in global gold demand and supply during 2014.

Full year gold demand totalled 3,923.7 tonnes in 2014 (from 4,087.6t in 2013). The 4% year-on-year drop was unsurprising as consumer demand was never likely to match the previous year’s record surge. Total annual supply was virtually unmoved at 4,278.2t. Growth in mine supply was balanced by a decline in recycling volumes to a seven-year low.

  • Jewellery: 2014 was always going to be a difficult year for jewellery demand, contending with comparisons to phenomenal strength in 2013. After a steep drop in Q2, demand for gold jewellery gradually recovered, culminating in the strongest Q4 since 2007. Full year statistics show the sector down by 10% at 2,152.9t, comfortably above the 2,053.0t average from the prior five-years.
  • Investment: Net investment demand of 904.6t in 2014 was 2% above the 2013 total of 885.4t. The positive year-on-year comparison is somewhat misleading: ETF outflows slowed to a fraction of the hefty 2013 total and therefore acted as less of a drag on investment. Demand for bar and coins among smaller investors dropped by 40%. This was again largely a function of the sheer strength of demand in 2013.
  • Technology: Gold demand in the Technology sector contracted to 389t - the lowest level since 2003. Sluggish economic conditions in key markets and ongoing substitution away from gold were the driving force behind the 5% drop.
  • Central Banks: Seeking continued diversification away from the US dollar, central banks absorbed 477.2t of gold in 2014, 17% above 2013’s impressive 409 tonnes. This was the second highest year of central bank net purchases for 50 years, after the 544 tonne addition to global gold reserves reported in 2012.
  • Supply: The total annual supply of gold was static at 4,278.2t in 2014. Despite record annual mine production, growth in mine supply was neutralised by shrinking volumes of recycling.

Key demand data

Gold Demand Trends Full Year 2014 infographic

gold demand trends full year 2014 infographic
gold demand trends full year 2014 infographic
gold demand trends full year 2014 infographic

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Demand statistics (in tonnes and value)

      2013 2014 Q4'14 vs Q4'13
Tonnes 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q4 % chg
Jewellery 2,384.6 2,152.9 546.4 704.6 566.7 566.9 564.1 494.3 519.5 575.0 1
Technology 408.2 389.0 103.5 103.5 103.1 98.1 96.1 99.8 97.6 95.5 -3
Electronics 279.1 267.3 70.9 69.9 71.0 67.2 65.4 69.0 67.0 65.9 -2
Other Industrial 92.8 87.5 23.7 24.1 23.1 21.9 22.1 22.0 22.2 21.3 -3
Dentistry 36.3 34.2 8.9 9.5 9.0 8.9 8.6 8.9 8.4 8.3 -7
Investment 885.4 904.6 283.9 229.2 192.4 180.0 279.4 224.8 202.5 198.0 10
Total bar and coin demand 1,765.4 1,063.6 460.5 631.4 312.6 360.9 281.9 263.5 235.4 282.8 -22
Physical Bar demand 1,385.0 807.8 355.2 501.9 255.6 272.3 222.6 203.0 178.1 204.1 -25
Official Coin 276.6 178.5 74.5 91.2 41.1 69.8 45.2 43.5 32.8 56.9 -18
Medals/Imitation Coin 103.8 77.4 30.8 38.4 16.0 18.8 14.1 17.0 24.5 21.8 16
ETFs & similar products1 -880.0 -159.1 -176.5 -402.2 -120.2 -181.0 -2.6 -38.7 -32.9 -84.9 -
Central bank net purchases 409.3 477.2 130.8 92.1 101.5 85.0 124.3 117.8 116.1 119.1 40
Gold demand 4,087.6 3,923.7 1,064.6 1,129.3 963.6 930.0 1,063.8 936.7 935.6 987.5 6
London PM fix, US$/oz 1,411.2 1,266.4 1,631.8 1,414.8 1,326.3 1,276.2 1,293.1 1,288.4 1,281.9 1,201.4 -6
      2013 2014 Q4'14 vs Q4'13
US$mn 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 % chg
Jewellery 108,197 87,659 28,665 32,052 24,163 23,262 23,453 20,476 21,411 22,209 -5
Technology 18,520 15,837 5,430 4,708 4,396 4,024 3,994 4,135 4,022 3,688 -8
Electronics 12,661 10,883 3,719 3,181 3,028 2,758 2,720 2,857 2,760 2,546 -8
Other Industrial 4,212 3,562 1,242 1,097 986 899 918 911 914 821 -9
Dentistry 1,646 1,391 469 430 382 366 357 367 348 321 -12
Investment 40,173 36,830 14,895 10,423 8,203 7,383 11,614 9,311 8,345 7,646 4
Total bar and coin demand 80,100 43,307 24,157 28,720 13,331 14,808 11,721 10,915 9,702 10,924 -26
Physical Bar demand 62,840 32,890 18,635 22,828 10,899 11,173 9,256 8,409 7,340 7,882 -29
Official Coin 12,549 7,267 3,907 4,148 1,751 2,866 1,881 1,801 1,352 2,199 -23
Medals/Imitation Coin 4,712 3,151 1,614 1,745 681 770 584 705 1,010 843 9
ETFs & similar products1 -39,927 -6,477 -9,261 -18,297 -5,128 -7,425 -107 -1,604 -1,357 -3,278 -
Central bank net purchases 18,572 19,429 6,863 4,187 4,326 3,488 5,166 4,879 4,784 4,599 32
Gold demand 185,461 159,754 55,854 51,371 41,089 38,156 44,227 38,801 38,562 38,142 0

 

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

© Copyright 2015 World Gold Council and GFMS, Thomson Reuters [and others]. All rights reserved.  No reproduction permitted without permission.  See here for details.

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 FY 2014 video

Alistair Hewitt, Head of Market Intelligence at the World Gold Council, talks through the findings from the Full Year 2014 Gold Demand Trends report. 2014 saw a stabilisation of the gold market as it pulled back from the extremes of 2013.