Jewellery in India, the US and the UK – the highlights of Q3 2014

global gold demand

According to the latest Gold Demand Trends report from the World Gold Council, covering

the period Julyto September 2014,global demand for gold was down just 2% year on year to

929 tonnes (t).

Overall jewellery demand softened slightly down 4% to 534t, when compared with an

exceptional quarter in 2013.Taking a slightly longer term view, Q3 2014 jewellery demand

was marginally stronger than the quarterly average of 527.6t. Year todate volumes continue

to extend the broad uptrend from the low seen in 2009.

Looking behind this overall number, inIndia,jewellery demandsaw a 60% year on year

increase to 183t in Q3 2014, the second highest Q3 on record for the country. While the

increase is partly reflective of the weakness in Q3 in India last year -when the government

introduced import curbs and raised import duties – it also demonstrates the resilience of the

country’s appetite for gold jewellery. Improved consumer confidence in both the domestic

economy and the new government added to the positive sentiment, with strong levels of

purchasingbeing seen in the build up to Diwali.

In China jewellerydemand for Q3 2014 was down 39% yearonyear, but was broadly in line

with both Q3 2012 and the 5-year quarterly average (of 148.2t and 154.9t respectively).

Whilst in the US and UK, jewellery demand was strong, buoyed by ongoing economic

recoveries. US jewellery demand grew 4% yearonyear to 34t, the highest Q3 since 2009. UK

jewellery demand had its fifth consecutive quarter of year on year growth.

Investment demand, a combination of bars and coins and exchange-traded funds (ETF),

was up 6% to 204t. However, investment in bars and coins was down 21% to 246t. This

reflects an adjustment towards more normal levels of demand after a surge of unprecedented

consumer demand took place last year. ETF outflows stood at 84t for the year to date

compared to 699t in the same period last year. Third quarter demand for bars and coinswas

very close to the 10-year quarterly average of 240.6t. It’s worth noting that before the

financial crisis of 2008, the European bar and coin market was virtually non-existent.

Marcus Grubb, Managing Director of Investment Strategy at the World Gold Council


“This quarter the market continued to find its feet after an exceptional 2013, with China

catching its breath and buying in the build up to Diwali driving Indian jewellery purchases.

The figures for India and China this quarterreinforce the need tounderstandthe factors which

underpinnedan exceptionalQ3 last year.In 2013, India was impactedby import curbs and

increased import dutiesimposed by the previous government, whereasexceptional buying in

China during the same periodshaped buying patterns in 2014.

The Q3 2014 Gold Demand Trends report, which includes comprehensive data provided by

GFMS,Thomson Reuters, can be viewedat
demand-trends and a video can be seen here.


For further information please contact:

Rakhi Khanna

World Gold Council


Note to editors:

World Gold Council

The World Gold Council is the market development organisation for the gold industry. Working within the

investment, jewellery and technology sectors, as well as engaging in government affairs, our purpose is to

provide industry leadership, whilst stimulating and sustaining demand for gold.

We develop gold-backed solutions, services and markets, based on true market insight. As a result, we create

structural shifts in demand for gold across key market sectors.

We provide insights into the international gold markets, helping people to better understand the wealth

preservation qualities of gold and its role in meeting the social and environmental needs of society.

Based in the UK, with operations in India, the Far East, Europe and the US, the World Gold Council is an

association whose members include the world’s leading and most forward thinking gold mining companies.