Gold Demand Trends Q1 2016

Gold Demand Trends Q1 2016

Gold demand reached 1,290 tonnes Q1 2016, a 21% increase year-on-year, making it the second largest quarter on record. This increase was driven by huge inflows into exchange traded funds (ETFs) – 364t – fuelled by concerns around the shifting global economic and financial landscape. Higher prices and industrial action in India pushed global demand for jewellery down (-19%), while total bar and coin demand was marginally higher (+1%). Central banks remained strong buyers, purchasing 109t in the quarter. Total supply increased 5% to 1,135t. Hedging by producers (40t) supported an increase of 56t in mine supply, although countered by a marginal decline in recycling.

      2014 2015 2016 Q1'16 vs Q1'15
Tonnes 2014 2015 Q2 Q3 Q4 Q1 Q2 Q2 Q4 Q1 % chg
Jewellery 2,482.0 2,397.5 589.5 591.5 686.0 596.9 513.7 623.7 663.2 481.9 -19
Technology 348.5 333.8 86.6 89.5 89.4 83.3 83.5 82.9 84.1 80.9 -3
Electronics 277.6 264.3 68.6 71.6 71.8 66.3 65.8 65.5 66.8 63.9 -3
Other Industrial 51.0 50.6 13.1 13.0 12.8 12.3 13.0 12.7 12.7 12.4 1
Dentistry 19.9 18.9 4.9 4.9 4.8 4.7 4.8 4.7 4.6 4.5 -4
Investment 822.0 895.6 200.1 182.4 169.4 277.9 182.3 230.3 205.2 617.6 122
Total bar and coin demand 1,005.6 1,023.9 238.1 223.3 261.5 252.2 205.3 293.7 272.7 253.9 1
Physical Bar demand 726.5 739.8 170.8 166.9 186.9 186.6 151.2 199.8 202.2 183.4 -2
Official Coin 202.9 212.4 48.8 35.7 54.5 50.2 40.1 72.6 49.5 58.7 17
Medals/Imitation Coin 76.2 71.7 18.6 20.8 20.1 15.4 14.0 21.3 21.0 11.8 -24
ETFs & similar products1 -183.6 -128.3 -38.0 -40.9 -92.1 25.6 -23.0 -63.4 -67.6 363.7 >300
Central bank & other inst. 583.9 566.3 157.2 174.9 133.9 112.3 127.2 167.9 158.8 109.4 -3
Gold demand 4,236.4 4,193.1 1,033.5 1,038.3 1,078.7 1,070.4 906.7 1,104.7 1,111.3 1,289.8 21
LBMA Gold Price, US$/oz 1,266.4 1,160.1 1,288.4 1,281.9 1,201.4 1,218.5 1,192.4 1,124.3 1,106.5 1,182.6 -3
      2014 2015 2016 Q1'16 vs Q1'15
US$mn 2014 2015 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 % chg
Jewellery 101,054.9 89,417.2 24,419.8 24,378.3 26,495.7 23,383.0 19,693.0 22,543.7 23,591.5 18,322.3 -22
Technology 14,188.6 12,450.2 3,588.7 3,688.2 3,453.5 3,263.0 3,201.5 2,996.0 2,992.5 3,074.1 -6
Electronics 11,301.4 9,858.3 2,843.4 2,950.4 2,771.6 2,595.4 2,521.2 2,366.4 2,377.4 2,430.9 -6
Other Industrial 2,076.3 1,888.4 542.6 536.6 495.8 482.3 497.7 458.6 450.0 471.2 -2
Dentistry 811.0 703.5 202.7 201.2 186.0 185.2 182.6 171.0 165.1 172.0 -7
Investment 33,469.7 33,402.3 8,290.1 7,518.9 6,543.0 10,885.7 6,986.7 8,323.4 7,299.0 23,482.7 116
Total bar and coin demand 40,944.2 38,189.1 9,864.1 9,204.7 10,099.6 9,881.1 7,869.7 10,614.9 9,702.3 9,654.6 -2
Physical Bar demand 29,581.5 27,590.9 7,074.9 6,877.4 7,218.3 7,311.4 5,795.5 7,221.1 7,192.2 6,973.9 -5
Official Coin 8,260.2 7,923.6 2,019.8 1,470.3 2,104.8 1,965.8 1,538.5 2,623.9 1,762.5 2,232.9 14
Medals/Imitation Coin 3,102.6 2,674.5 769.4 857.0 776.5 604.0 535.7 770.0 747.6 447.8 -26
ETFs & similar products1 -7,474.5 -4,786.8 -1,574.0 -1,685.8 -3,556.6 1,004.6 -883.0 -2,291.5 -2,403.3 13,828.1 >300
Central bank & other inst. 23,774.0 21,121.3 6,511.7 7,206.5 5,173.5 4,400.5 4,877.9 6,069.2 5,649.8 4,161.2 -5
Gold demand 172,487.2 156,390.9 42,810.3 42,792.0 41,665.6 41,932.2 34,759.1 39,932.4 39,532.8 49,040.2 17

1For a listing of the Exchange Traded Funds and similar products click here for more information.

Source: Metals Focus; GFMS, Thomson Reuters; ICE Benchmark Administration; World Gold Council

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