Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.
The World Gold Council yesterday published the latest issue of Gold Demand Trends for Q2 2011, which suggests a positive outlook for gold. A summary of the report is provided below.
“Gold’s strong start to the year was reinforced during the second quarter of 2011 where total global gold demand measured 919.8 tonnes (t), worth a near-record US$44.5bn, with broad-based support across all sectors and geographies. Standout markets were India and China, as these two markets accounted for 52% of total bar and coin investment and 55% of global jewellery demand.
“According to the Gold Demand Trends report for Q2 2011, gold demand in the second half of 2011 will remain strong owing to a number of key factors:
- Despite a higher gold price, Indian and Chinese demand grew 38% and 25% respectively during Q2 2011 compared to the same period of 2010. This growth is likely to continue, due to increasing levels of economic prosperity, high levels of inflation and forthcoming key gold purchasing festivals.
- The impact of the European sovereign debt crisis, the downgrading of US debt, inflationary pressures and the still-fragile outlook for economic growth in the West are all likely to drive high levels of investment demand for the foreseeable future.
- Central banks are likely to remain net purchasers of gold. Purchases of 69.4t during Q2 2011 demonstrated that central banks are continuing to turn to gold to diversify their reserves.”
Source: World Gold Council – Global Demand Trends Q2 2011, August 18, 2011.
World Gold Council: Gold statistics for Q2 2011 was first posted on August 19, 2011 at 8:30 am.
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