The World Gold Council has published its “Gold Demand Trends” review. It shows that an astonishing 349 tonnes or 63% of world gold jewellery demand (557t) was accounted for by China and India in Q1 2011.
Nick Moore, a gold and silver analyst at RBS comments: “If we also add in bar and coin investment, then at a combined 526t these two countries took up 57% of world jewellery+investment. There was also an impressive 129t of official sector buying, dominated by 93t of purchases by the Bank of Mexico during February and March.
“But strip out official sector transactions and the underlying demand for gold in Q1 was an impressive 1,000t, compared with a quarterly average in 2010 of 993tpq and in 2009 of 905tpq.”