Gold Demand Trends Q4 & Full Year 2011 Summary
By: The World Gold Council
Global demand for gold in 2011 rose to 4,067.1 tonnes (t) worth an estimated US$205.5 billion – the first time that global demand has exceeded US$200 billion and the highest tonnage level since 1997.
The main driver for this increase was the investment sector where annual demand was 1,640.7t up 5% on the previous record set in 2010 and with a value of US$82.9 billion.
The pre-eminent markets for investment demand in 2011 were India, China and Europe. Central banks continued the trend established in 2010 of being net buyers of gold.
Marcus Grubb, Managing Director, Investment remarked “What we can see from these 2011 figures is that there were two main factors driving the results: Asian growth and optimism on the one hand and western desire to protect assets against uncertainty on the other. Looking particularly at Asia, there was a major boost to the overall figures from the increase in Chinese demand, which is a trend that we see continuing over the next year. It is likely that China will emerge as the largest gold market in the world for the first time in 2012 demand terms. What is certain is that the long-term fundamentals for gold remain strong, with a diverse and growing demand base, coupled with constrained supply side activity.”
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All Things Considered – John’s Commentary
2011 was another impressive year for global gold demand. Volume grew .4% to $205.5 billion. Investment was the primary driver of gold growth, further buoyed by resilience in the jewelry and technology sectors.
Significant central bank purchases offset both record mine production and lower recycling activity.
What to buy: We have 1 ounce silver rounds (mixed type) and 1 oz. silver bars at very low premiums. We are also featuring US 1 oz. gold Buffalos and many other coins.
Quote of the day: “The first requisite of a sound monetary system is that it put the least possible power over the quantity or quality of money in the hands of the politicians.” – Henry Hazlitt
