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Gold bar and coin demand jumps a staggering 77% worldwide – whilst the price falls 25%

Back in May we wrote about the World Gold Council’s Q1 2013 demand report for gold, which showed physical demand had jumped by 8%. That report only covered January to March, and didn’t cover the period where the gold price decline really got going in April and May:

And it should be noted that these numbers don’t even take into account the massive physical buying we’ve seen around the globe in April. We’ll have to wait another 3 months to get that full data but it’s sure to show this disconnect grew even further in Q2 2013.

Well here we are some three months later and the WGC’s latest gold demand report is out covering exactly that period mentioned above, and it’s a doozy if you’re a gold bull.

From the report:

world gold council demand q2 2013(click for sharper image)

Jewellery demand rose from 420.8 tonnes in Q2 2012 to 575.5 tonnes in Q2 2013 a rise of 37%.

Total gold bar and coin demand went from 285.9 tonnes to 507.6 tonnes – this is a rise of a staggering 77%!

And we can see where all the selling came from – it came in the form of ‘paper gold’ ETF’s, which saw a fall in demand to the tune of 402 tonnes. If we strip out the ‘paper’ demand and just look purely at the physical action worldwide, we can see that total gold demand was 1258.5 tonnes in Q2 2013 – this compares to total gold demand (minus ETFs) in Q2 2012 of 974.6 tonnes.

Which all means that when you look at what is going on with physical gold demand around the globe in Q2 2013, it has jumped and amazing 30% in one year.

So there you go folks, the numbers are in and it very clearly tells the tale that all the price decline has really done the past few months is explode the demand for physical gold in an unprecedented manner – exactly what we’ve been saying is the case.

Don’t be fooled by the price action in gold, it is covering up surging global demand – and if this pace of buying is kept-up, expect the price of gold by the time of the next WGC’s report to be much, much higher than it is today.

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-bar-and-coin-demand-jumps-a-staggering-77-worldwide-whilst-the-price-falls-25-11426/

Posted by on Aug 16 2013. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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