UNITED STATES November 08 2016 4:23 PM
NEW YORK (Scrap Register): The rising gold price also encouraged consumers to recycle their gold, generating more than 341 tons of supply during the third quarter of this year, up 30 percent from the same period last year, said World Gold Council in its latest report.
This trend was particularly prevalent in India, where consumers cashed in on their holdings, swelling the amount of recycled gold in the region to 39 tons, its highest level since Q4 2012.
Global gold demand fell by 10 percent to 992.8 tons during the third quarter of this year, as compared to 1,104.8 ton in the corresponding quarter last year.
Total investment demand rose 44 percent to 336 tons as investors continued to build up their strategic allocations to gold. Gold-backed exchange traded products (ETP) inflows accounted for 146 tons in the quarter under review, dominated by European funds.
These flows were supported by relatively expensive equity valuations and low—yielding sovereign bonds. By contrast, bar and coin demand totaled 190 tons in Q3, down 36 percent year-on-year.
Central bank demand reached 82 tons this quarter as against 168 tons in the same period last year. Total mine supply dropped by 4 percent to 832 tons in Q3 from 866 tons in the same quarter last year.
The relative stability can be attributed to the cost cutting programmes that have been a feature over the past few years.