Global demand for physical gold increased by 9% year-on-year in the first quarter of 2017, according to the latest demand report from the World Gold Council.
The sale of gold bars and gold coins hit 289.8 tons worldwide in Q1, driven by Asia’s appetite for gold. The WGC said the strength of the retail investment market in the first quarter built on 2016’s exceptionally strong finish.
Demand in China soared in the first quarter. Chinese investors gobbled up 105.9 tons of gold. That represents a 30% year-on-year increase, and was the fourth strongest quarter on record.
Demand also rebounded in India after a weak end to 2016. Indians bought 31.2 tons of gold bars and coins in the first quarter of this year. This after the Indian economy virtually ground to a halt after after a government demonetization policy that suddenly declared 1,000 and 500 rupee notes no longer valid. According to the WGC, currency in circulation fell 50% from Nov. 11 to Jan. 6. Sales of motorcycles – a good barometer of the health of India’s cash-reliant economy – halved in December. Gold imports in the first quarter indicate a rebound, increasing 106% over Q1 2016. It appears strong first quarter demand carried over into the new quarter. Indians bought 23 tons of gold in a single day during the Akshay Tritiya festival last week.
This post was published at Schiffgold on MAY 4, 2017.
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