World Gold Council

  • According to the World Gold Council (World Gold Council) 2011 was the first time that the demand for gold surpassed $ 200 billion since 1997. The main driver of this increase was the investment in the sector mainly caused by the distrust of investors in currencies and global economy, refuge their capitals in tangible and real gold and silver commodities. Markets which largely took over investment in 2011 were the India, China and Europe. The India and China remain the cultural bastions of gold, which generates 55% of world jewelry demand and 49% of global demand. The report stresses that the India remains the largest country in demand with 933,4 tonnes, notably taking into account the volatility of the gold price and the weakness of the Indian rupee against the U.S. dollar during the second half of the year.

    Gold jewelry accounted for more than 500 tons and the demand for the investment market reached 366 tons. The consumption of the India accounted for 25% of the total of the bar. In China, annual demand stood at 769,8 tons, which meant a jeweler increased 20% compared to 2010, as a result of the increase in consumption and investment. The biggest increase was in the investment, where demand stood at 258,9 tonnes the consumption for jewelry in China increased each quarter last year and was the largest jewellery market worldwide for the second half of 2011. The demand for the metal also rebounded in Europe at close at 374,8 tons. Germany and Switzerland were the main drivers of growth in the region, which remains in economic turmoil, and thus with the need to protect assets. Central banks are trying to keep interest rates low and expand its measures of stimulation but continued the trend established in 2010 to be net buyers of gold. Purchases from central banks spent 77.0 tonnes to 439,7 tonnes.

    According to the World Gold Council report, This reflects the need to diversify assets, reducing dependence on one or two foreign currencies, agglutinate reserves and protect the national patrimony. This is the largest increase of its reserves in gold in almost five decades. In the opinion of experts as famous as Mark OByrne, executive director of GoldCore, Ltd. an Irish agent that sells gold coins and bars, gold is a crucial diversification based on current economic risks. The good news is we all have now the opportunity to acquire these precious metals from very small amounts and truly exceptional prices.