World Gold Council Q3 2013 Gold Report

(November 14, 2013 - by World Gold Council)

Read the complete World Gold Council 3rd Quarter 2013 Gold Report at
http://www.mintstategold.com/WGC_Gold_Report_Q3_2013.pdf

Two key themes have emerged during 2013: the rising level of consumer demand off-setting outflows from ETFs, and the geographical flow of gold from western to eastern markets. In addition, a key development of the third quarter was a quarter-on-quarter decline in demand, the first Q2-Q3 drop since 2007. Two key factors contributed to this decline, the primary explanation being the April and June price drops.

With one quarter of 2013 remaining, and given the unusual quarter-on-quarter dynamics and longer-term trends mentioned previously, it is more relevant to consider demand on a year-to-date basis to gain a clearer picture of the direction of gold demand for 2013. Although momentum in eastern markets waned following the exceptional second quarter, year-to-date growth has been remarkable. The fact that Q3 demand was well above the third quarter of 2012 is all the more remarkable because of the diminished role played by India.

Central banks
Central banks added a further 93.4t of gold to their reserves in the third quarter – after 79.3t in the second quarter – bringing year-to-date purchases to almost 300t.

Technology
Gold demand in the technology sector reported a modest gain in Q3, increasing by almost 1% year-on-year for the second consecutive quarter, as lower average prices continued to support the sector.

Supply
Gold supplied to the market during the third quarter totalled 1,145.5t, 3% below the same period in 2012. Mine production generated a 4% year-on-year increase in the supply of gold during Q3.

Jewellery
Q3 jewellery demand totalled 486.7t, the highest third quarter since 2010.

Investment
Q3 was another mixed quarter for the investment sector, as the two key elements of gold continued to diverge: demand for bars and coins increased by 6% while ETFs saw a third consecutive quarter of net outflows.

Read the complete World Gold Council 3rd Quarter 2013 Gold Report at
http://www.mintstategold.com/WGC_Gold_Report_Q3_2013.pdf