The World Gold Council released its Gold Demand Trends statistics this morning. From the release …
Total identifiable gold demand for the third quarter 2009 reached 800.3 tonnes, or US$24.7 billion in dollar terms, up 15% from the second quarter, as gold’s long-term store of value and wealth preservation qualities continued to attract investors and consumers. Jewellery and investment demand in non-western markets rebound from the very low levels seen in the first quarter, while industrial demand started to recover in response to an improvement in economic conditions.
You can read the latest numbers for yourself here: http://www.research.gold.org/supply_demand/
To be sure, gold demand fell 34% compared to a year earlier. But speculative buying, a surge of demand for gold in China and expectations for more official sector bullion buying are keeping prices elevated. And the rise from the dismal 2Q demand — boosted by consumer buying — is pretty bullish.
My takeway: Consumer demand is rebounding even in the face of higher prices. That means consumer are adjusting to higher prices (the average price of gold in the 3rd quarter was over $950 an ounce), which makes it that less likely that gold prices will go below $1,000 an ounce.
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- The China Gold Conundrum (02/18/10)
- Plenty of Bears Means Gold’s Bull Run Should Continue (09/11/09)
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