Investors push gold demand to more than $200bn
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Global demand for gold has been estimated at more than 4,000 tonnes worth $206 billion during 2011, according to the World Gold Council.
The World Gold Council’s latest Gold Demand Trends survey found an increased demand for the yellow metal from investors, increasing by 5% on 2010.
According to the gold industry body, demand in 2011 was the highest level since 1997, driven by investment demand in India, China and Europe.
China and India generated 55% of jewellery demand and 49% of global demand. In Europe demand came from Germany and Switzerland as investors flock to the “safe haven” asset to a backdrop of sovereign debt turmoil.
Marcus Grubb, managing director of investment at the World Gold Council, says: “What we can see from these 2011 figures is that there were two main factors driving the results: Asian growth and optimism on the one hand and western desire to protect assets against uncertainty on the other. (article continues below)
“Looking particularly at Asia, there was a major boost to the overall figures from the increase in Chinese demand, which is a trend that we see continuing over the next year.”
He adds: “It is likely that China will emerge as the largest gold market in the world for the first time in 2012.
“What is certain is that the long-term fundamentals for gold remain strong, with a diverse and growing demand base, coupled with constrained supply side activity.”
The trends survey also found that central banks remain net buyers of gold with purchases rising from 77 tonnes in 2010 to 439.7 tonnes in 2011.
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