Gold Demand Statistics for 2011:
· On the supply side, gold mine production reached a new annual record of 2,809.5 tons, 4% up on 2010. Recycling was down 2% year on year to 1,611.9 tons, which when average price rises of 28% are taken into account, indicates that near-market supplies are drying up and that consumers may be holding on to their gold in the expectation of higher prices.
· Gold used in electronics was up 1.1% to 330.4 tons worth a record $16.7 billion, which is unexpected considering the increase in cost. Annual demand for technology as a whole was steady at 463.5 tons due to growth primarily in the Chinese market. The value of this tonnage increased dramatically by 28% to a record $23.4 billion.
· The value of jewelry demand in 2011 reached a new annual record of $99.2 billion. India and China continue to believe in both the intrinsic and emotional value of gold jewelry which explains why overall global jewelry demand was resilient despite high gold prices, difficult economic conditions, volatility and currency weakness against the U.S. dollar. Annual demand was 1,962.9 tons down 3% from 2010.
· One major element of fourth quarter investment relates to the significant increase of inflow into gold ETFs to 86.8 tons in Q4 2011 compared to just 22.3 tons in Q4 2010. The annual comparison is much weaker as inflows of 154 tons for 2011 are significantly lower than 367.7 tons for 2010, although this should be seen in the context of 2010 being an exceptional year.
· Demand for gold bars and coins continues to be robust and was another major contributor of the increase in investment demand, which climbed 24% to 1,486.7 tons.
· A record gold price of $1,895 per oz. was set on the London PM fix on Sept. 5 and 6, 2011.
Gold Demand Trends February 2012