Percentage share of total gold physical demand by region in Q1 2013
This graph shows which countries have the strongest appetite for physical gold today. The first quarter of 2013 saw a huge surge in gold bar and coin demand worldwide, with the vast majority being bought by China and India.
Demand continued after the price crash in April, with unprecedented levels reported as buyers flock to gold retailers around the globe. As a result, stocks have been depleted in a number of key markets: jewellery shops in China and India have run low or in some cases completely out of stock. Shortages of both large bars and kilo bars have been reported across a number of markets, while western mints have had to cope with extraordinary demand for coins. Gold has been rapidly flowing into the major gold markets in order to meet this demand. In India, a market that represents 28% of consumer demand, imports of gold are heading towards record levels in Q2 2013 according to the World Gold Council. It anticipates around 300-400 tonnes of imports in the second quarter, as much as a 200% year-on-year increase and almost half of total imports last year. Latest available trade data show that imports into China from Hong Kong, that rose sharply in March, remain at extremely elevated levels (see p28 for more on the gold markets).
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