Gold Demand Trends

Gold Demand Trends Full Year 2013

Published 18th February 2014

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

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Marcus Grubb

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 through 2013.

  • Jewellery: 2013 saw the largest volume increase in jewellery demand for 16 years as consumers across the globe reacted to lower gold prices. Full year demand was 2,209.5t, 17% above 2012 and the highest level since the onset of the 2008 financial crisis.
  • 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 1,654.1t as individual investors took advantage of lower prices, while large-scale selling of more tactical ETF positions by western investors generated outflows of 880.8t.
  • Technology: Annual demand for gold used in technology stabilised at 404.8t, from 407.5t in 2012. The lower price environment and improved global economic outlook was supportive for gold used in a range of applications in the sector.
  • Central Banks: Net purchases by central banks increased global official gold reserves by 368.6t. 2013 was 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.
  • Supply: In 2013 the supply of gold declined 2% to 4,339.9t as a drop in recycling activity (in response to lower gold prices) more than offset growth in mine production.

Gold demand of 3,756.1 tonnes in 2013 was worth US$170.4bn. Consumers generated exceptional levels of demand, with jewellery at its highest since the onset of the financial crisis in 2008 and investment in small bars and coins hitting a record high. This was in contrast to large-scale outflows from ETFs, due to a number tactical western investors liquidating their positions as US economic sentiment improved. Central banks made healthy purchases of 368.6 tonnes, the fourth consecutive year of positive demand. The net result was a 15% decline in overall gold demand from 2012.

Key demand data

GDT Full Year 2013 infographic

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Demand statistics (in tonnes and value)

      2012 2013 Q4'13 vs Q4'12 4-quarter2
Tonnes 2012 20131 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q41 % chg % chg
Jewellery 1896.1 2,209.50 490.4 420.6 461.7 523.4 554.8 602.8 498 553.8 6 17
Technology 407.5 404.8 106 103.2 102.3 96 102.5 103.2 102.8 96.2 0 -1
Electronics 284.5 282.4 73.8 71.4 72.3 67 72.1 71.9 72 66.5 -1 -1
Other Industrial 84.4 85 22.2 21.9 20.6 19.7 21.7 22.2 21.1 20.1 2 1
Dentistry 38.6 37.3 10 9.9 9.4 9.3 8.8 9.1 9.8 9.7 4 -3
Investment 1,568.10 773.3 406.1 295.7 432.3 434.1 264.5 182.9 179.1 146.7 -66 -51
Total bar and coin demand 1,289.00 1,654.10 352.9 295.7 294.6 345.9 441.1 585.2 300.8 327 -5 28
Physical Bar demand 962.7 1,266.90 271.2 217.4 215.7 258.3 330.2 449.9 239.4 247.4 -4 32
Official Coin 213 283.4 55.1 55.4 49.2 53.3 80.1 97 45.5 60.8 14 33
Medals/Imitation Coin 113.4 103.8 26.5 22.8 29.7 34.3 30.8 38.4 16 18.8 -45 -8
ETFs & similar products3 279.1 -880.8 53.2 0 137.8 88.1 -176.5 -402.2 -121.8 -180.3 - -
Central bank net purchases 544.1 368.6 117.8 163.5 112.3 150.4 129.1 82.4 96.2 61 -59 -32
Gold demand 4,415.80 3,756.10 1,120.30 983 1,108.70 1,203.80 1,050.90 971.3 876.1. 857.8 -29 -15
London PM fix, US$/oz 1,669.00 1,411.20 1,690.60 1,609.50 1,652.00 1,721.80 1,631.80 1,414.80 1,326.30 1,276.20 -26 -15
      2012 2013 Q4'13 vs Q4'12 4-quarter2
US$mn 2012 20131 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q41 % chg % chg
Jewellery 101,745.00 100,248 26,657 21,767 24,521 28,972 29,108 27,419 21,326 22,724 -22 -1
Technology 21,864 18,365 5,759 5,339 5,435 5,316 5,379 4,694 4,385 3,948 -26 -16
Electronics 15,265 12,813 4,012 3,692 3,842 3,709 3,781.00 3,270 3,069 2,727 -26 -16
Other Industrial 4,530.00 3,858 1,204 1,135 1,095 1,092 1,138 1,010 899 823 -25 1
Dentistry 2,069 1,694 543 512 498 515 460 414 417 398 -23 -18
Investment 84,144 35,085 22,071 15,300 22,962 24,028 13,877 8,321 7,636 6,021 -75 -57
Total bar and coin demand 69,169.00 75,049 19,179.00 15,301 15,646 19,149 23,139.00 26,618.00 12,827.00 13,417.00 -30.00 10
Physical Bar demand 51,655 57,483 14,742 11,251 11,455 14,300 17,323 20,462 10,207 10,153 -29 32
Official Coin 11,428 12,857 2,995 2,869 2,611 2,948 4,202 4,411 1,940 2,495 -15 14
Medals/Imitation Coin 6,086 4,709 1,442 1,180 1,579 1,901 1,614 1,745 681 770 -60 -21
ETFs & similar products3 14,975 -39,964 2,892 -1 7,317 4,879 -9,261 -18,297 -5,192 -7,396 - -
Central bank net purchases 29,193 16,724 6,404 8,462 5,967 8,323 6,771 3,747 4,101 2,503 -70 -41
Gold demand 236,946 170,422 60,892 50,867 58,885 66,639 55,134 44,181 37,358 35,195 -47 -28

 

1Provisional.
2Percentage change, 12 months ended December 2013 vs 12 months ended December 2012.
3Exchange 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: Thomson Reuters GFMS, LBMA, World Gold Council

© Copyright 2014 World Gold Council and Thomson Reuters GFMS [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 Thomson Reuters GFMS. 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. Thomson Reuters GFMS 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 2013 video

Marcus Grubb, Managing Director Investment Strategy, talks through the findings from the Full Year 2013 Gold Demand Trends report.