The World Gold Council today releases its Gold Demand Trends Q1 2016 report [http://www.gold.org/supply-and-demand/gold-demand-trends], which is the leading industry resource for data and opinion on global gold demand. The quarterly publication examines demand trends by sector as well as geography and this report focuses on the patterns of demand seen in the first three months of 2016.
The key findings from Q1 are as follows:
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- Overall demand for Q1 2016 increased by 21% to 1,290t, up from 1,070t in Q1 2015.
- Total consumer demand was 736t down 13% compared to 849t in Q1 2015.
- Global investment demand was 618t, up 122% from 278t in the same period last year.
- Global jewellery demand fell 19% to 482t versus 597t in the first quarter of 2015.
- Central bank demand dipped slightly to 109t in Q1 2016, compared to 112t in the same period last year.
- Demand in the technology sector fell 3% to 81t in Q1 2016.
- Total supply was up 5% to 1,135t in Q1 2016, from 1,081t in the first quarter of 2015. Mine supply was up 8% to 774t.
World Gold Council
In addition, the world gold council also includes the GDT Q1 2016 infographic, summarising the report’s key findings.
Gold demand reached 1,290 tonnes Q1 2016, a 21% increase year-on-year, making it the second largest quarter on record. This increase was driven by huge inflows into exchange traded funds (ETFs) – 364t – fuelled by concerns around the shifting global economic and financial landscape. Higher prices and industrial action in India pushed global demand for jewellery down (-19%), while total bar and coin demand was marginally higher (+1%). Central banks remained strong buyers, purchasing 109t in the quarter. Total supply increased 5% to 1,135t. Hedging by producers (40t) supported an increase of 56t in mine supply, although countered by a marginal decline in recycling.