Gold Demand Trends Q2 2016

Gold Demand Trends Q2 2016

Continued growth in Q2 2016 (+15%) brought total H1 gold demand to 2,335t – the second highest first half on record. Huge ETF inflows during the first six months (+579t) were counterbalanced by anaemic jewellery demand in an environment of sharply rising prices. In fact, the gold price posted the strongest H1 performance (+25%) for more than 35 years.

Record H1 investment demand of 1,063.9t was 16% higher than the previous H1 high from 2009. Investment was the largest component of gold demand for two consecutive quarters (Q1 and Q2) – the first time this has ever happened.

Total supply increased by 10% year-on-year in Q2, to 1,144.6t vs. 1,041.7t in Q2 2015. First half supply is just 1% higher year-on-year, the slowest rate of H1 growth for 8 years. The main contributors to this growth have been recycling and hedging, both of which have been supported by higher gold prices.

Gold Demand Trends Q2 2016 supply and demand tables

      2014 2015 2016 Q2'16 vs Q2'15
Tonnes 2014 2015 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 % chg
Jewellery 2,485.8 2,396.9 592.9 685.4 597.1 513.7 623.6 662.6 481.2 444.1 -14
Technology 347.9 332.9 89.3 89.3 83.1 83.3 82.7 83.8 80.3 80.9 -3
Electronics 277.4 264.1 71.5 71.7 66.2 65.7 65.4 66.7 63.9 63.9 -3
Other Industrial 50.7 50.1 13.0 12.8 12.2 12.8 12.5 12.5 11.9 12.4 -3
Dentistry 19.8 18.8 4.8 4.8 4.7 4.7 4.7 4.6 4.5 4.6 -4
Investment 853.8 921.5 192.1 183.4 283.0 186.1 231.5 220.9 615.6 448.4 141
Total bar and coin demand 1,037.7 1,049.8 233.0 275.4 257.3 209.1 294.9 288.5 273.1 211.6 1
Physical Bar demand 758.6 759.3 176.5 200.8 191.3 149.7 200.7 217.7 200.0 149.2 0
Official Coin 202.9 218.8 35.7 54.5 50.6 45.5 72.9 49.8 61.4 49.6 9
Medals/Imitation Coin 76.2 71.7 20.8 20.1 15.4 14.0 21.3 21.0 11.7 12.8 -9
ETFs & similar products1 -183.8 -128.3 -40.9 -92.1 25.6 -23.0 -63.4 -67.6 342.5 236.8 -
Central bank & other inst. 583.9 566.7 174.9 133.9 112.4 127.3 168.0 159.0 108.2 76.9 -40
Gold demand 4,271.4 4,218.1 1,049.2 1,091.9 1,075.6 910.4 1,105.7 1,126.4 1,285.3 1,050.2 15
LBMA Gold price, US$/oz 1,266.4 1,160.1 1,281.9 1,201.4 1,218.5 1,192.4 1,124.3 1,106.5 1,182.6 1,259.6 6
      2014 2015 2016 Q2'16 vs Q2'15
US$mn 2014 2015 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 % chg
Jewellery 2,485.8 2,396.9 592.9 685.4 597.1 513.7 623.6 662.6 481.2 444.1 -14
Technology 347.9 332.9 89.3 89.3 83.1 83.3 82.7 83.8 80.3 80.9 -3
Electronics 277.4 264.1 71.5 71.7 66.2 65.7 65.4 66.7 63.9 63.9 -3
Other Industrial 50.7 50.1 13.0 12.8 12.2 12.8 12.5 12.5 11.9 12.4 -3
Dentistry 19.8 18.8 4.8 4.8 4.7 4.7 4.7 4.6 4.5 4.6 -4
Investment 853.8 921.5 192.1 183.4 283.0 186.1 231.5 220.9 615.6 448.4 141
Total bar and coin demand 1,037.7 1,049.8 233.0 275.4 257.3 209.1 294.9 288.5 273.1 211.6 1
Physical Bar demand 758.6 759.3 176.5 200.8 191.3 149.7 200.7 217.7 200.0 149.2 0
Official Coin 202.9 218.8 35.7 54.5 50.6 45.5 72.9 49.8 61.4 49.6 9
Medals/Imitation Coin 76.2 71.7 20.8 20.1 15.4 14.0 21.3 21.0 11.7 12.8 -9
ETFs & similar products1 -183.8 -128.3 -40.9 -92.1 25.6 -23.0 -63.4 -67.6 342.5 236.8 -
Central bank & other inst. 583.9 566.7 174.9 133.9 112.4 127.3 168.0 159.0 108.2 76.9 -40
Gold demand 173,913.7 157,320.9 43,242.0 42,176.7 42,136.1 34,899.4 39,967.9 40,069.5 48,866.8 42,530.7 22
LBMA Gold Price, US$/oz 1,266.4 1,160.1 1,281.9 1,201.4 1,218.5 1,192.4 1,124.3 1,106.5 1,182.6 1,259.6 6

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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