Gold Demand Trend Q2, 2011
Gold has turned out to be investor's favorite in this crunch time. Q2 2011 shows unprecedented demand of Gold reaching to 919.8 tonnes. But surprising fact is more than half of the Gold demand comes from only two countries i.e. China and India. Two emerging economies is purchasing Gold more than rest of the world.
Gold Demand Trend report for Q2, 2011 shows that Gold will continue to be in demand for next half year in 2011. Here are the key reasons.
- Higher gold price has failed to cut Gold demand in India and China. It grew by 38 % and 25 % respectively during Q2, 2011 on year on year basis. There is no sign of slowing down demand from India and China.
- With European debt crisis, US Debt downgrade and higher inflation, Gold is turning out ot be a favorite investment in coming year.
- With net purchase over 69 tone in Q2 2011, Central banks will remain one of the top purchasers of Gold to keep their reserves diversified.
Marcus Grubb, Managing Director, Investment at the World Gold Council said “The strength of demand in India and China, coupled with an overall drop in recycling activity this quarter, demonstrates that consumers have adjusted to the current price environment and expect the upward price trend to continue. In addition, ongoing macro economic uncertainty, the continued sovereign debt crisis and widespread inflationary pressures, will result in gold demand remaining strong.”
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