The year to date overall demand for gold is roughly equivalent to 2009.The year to date demand is around 2,972 tonnes. Take a look at the year to date demand below:
The quarter on quarter demand for Q3 fell to 892.3 tonnes which has been its lowest since Q3 2009. Check out the chart below:
Key highlights from the gold council.
1. Jewellery demand has improved from the Q2 record low as most markets have seen some kind of restrictions lifted. Some reports notice a shift to online shopping helping demand recover. This drop in demand was not helped by rising gold prices either which hit recent peaks in Q3. Read the full report here.
2. Exchange traded funds demand grows. Gold bcked etf’s reached 3880 tonnes in Q3 as these investments grew by 272.5 tonnes. The drop in jewellery demand has been more than compensated for by the rise in ETF holdings.
3. Bar and coin demand rockets higher to a YTD record. Q3 bar and coin demand in the US more than quadrupled year on year yo 19.2tonnes. Year to date purchases are 48.9 tonnes more than treble the demand seen in the same period of 2019.
4. Central banks sell. This was mainly due to the fact that Turkey and Uzbekistan sold around 57 tonnes of gold between them. I suppose they are cashing in with the higher prices. Six other central banks increased reserves
In summary there is plenty of potential demand still to come in the market. If a COVID-19 vaccine rolls out and that gives consumers enough confidence then the jewellery market should open right up. I find the growth in bars and coins encouraging as it means that investors and consumers are looking to accumulate gold. The huge rise in ETF’s shows the fundamental bias for gold bugs is still there as investors accumulate positions.