- 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.
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.