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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.

Q1 saw a strong resurgence in demand for gold jewellery, bars and coins; however, overall demand was down 13%. Outfows from ETFs accounted for the vast bulk of this decline; excluding these outfows overall demand grew year-on-year. India and China again served as the main engines of growth in jewellery…