Precious Metals & Bench/Data & Statistics
Gold Demand Declines
Rising demand in jewelry can't overpower weakness in investment
Demand for commodity gold fell slightly in the second quarter, reports the World Gold Council. In the countries monitored, demand totaled 789 metric tons, down 2% from the second quarter of 1999. Demand for the first half of 2000 totaled 1,584.2 metric tons, 0.6% lower than the first half of last year.
Meanwhile, demand for gold for use in jewelry rose 1% to 695.3 metric tons in the second quarter. For the first half, demand for gold in jewelry rose to 1,396.4 metric tons, an increase of 4% from the same period of 1999. Jewelry demand increased significantly in many countries: 49% in Turkey, 69% in Thailand, 17% in Mexico, 22% in Malaysia, 13% in Taiwan and 12% in the United Kingdom.
However, demand for gold as an investment was low in the second quarter, falling 22% below the level during the second quarter last year. For the first half of 2000, investment demand was 187.8 metric tons, a 26% decrease from the first half of 1999.
The strength of worldwide demand for gold during the second quarter and first half of this year is encouraging, especially in the face of continued weakness in the demand for gold as an investment, says Haruko Fukuda, CEO of the World Gold Council. Physical demand often experiences some seasonal weakness during the first half of the year, yet demand was maintained in spite of a higher average price of $280 an ounce during the period and the fact the price remained well above the 20-year lows reached last summer.
The report on current gold demand, Gold Demand Trends No. 32, is available online at www.gold.org.
by Julia Duncan