World Gold Council reports on second quarter demand for gold showed just what we had suspected ... that physical buying was up as prices fell and the 'shorter-term' ETF investors liquidated their positions.
Lower prices saw an equally big pick up by physical gold investors, especially in Asia, who snapped up gold bars and coins.
"The consumer market for gold was once again dominated by global leaders India and China, which together accounted for almost 60% of the global jewellery sector and around half of total bar and coin demand," writes the authors of the World Gold Council report.
"On a year-to-date basis, total consumer demand (for jewellery, bars and coins) in each country is almost 50% ahead of the same period in 2012.
The World Gold Council warns that gold may have difficulty maintaining this momentum going forward.
"Bar and coin demand may struggle to maintain the exceptional levels of the past quarter, however it has solid underpinnings - most notably in the Asian markets."
Sunday August 18, 2013 by