The global demand for gold has dropped to the lowest level in 5 years in 2014, after the demand for gold bars and coins collapsed and the demand for jewelry also cooled down. That is what the World Gold Council (WGC) reported.
In total the demand dropped by 3924 tons, which is 4 percent lower than the lowest level since 2009. That is what the trend report of the World Gold Council, which is published every quarter, stated.
Demand for gold bars and coins dropped by 40 percent to 1,064 tons. This happened, according to the organization, because investors had bought large quantities in 2013 because of the sharp price drop. There was little room for additional purchases.
In China, where the demand for gold bars and coins dropped by 50 percent, investors are also sitting on large quantities. These people are waiting for a clear direction, which is something we did not see in 2014. Meanwhile, the recovery of the stock market in the second half of the year gave Chinese people a very attractive alternative, according to the WGC. The crackdown of the Chinese government on corruption also did not help the demand for gold.
Demand For Gold From India
Regarding jewelry, demand among the biggest consumers in the world was mixed. There was less demand from China, for example, but demand from Indian consumers increased. In India, demand for jewelry rose by 8 percent compared to the year before and especially wedding or festivity-related purchases drove the increase in Q4 to 179 tons, which represents a 19 percent increase compared to a year before. In total demand ended up around 624 tons. India was the world’s biggest consumer of gold in 2014, as a consequence, before China.
