Quarterly demand for gold rises to $14.5bn

The global demand for gold jewellery increased by 37 per cent at $14.5 billion in the second quarter of financial year 2007-08 as compared to the demand in the second quarter of fiscal year 2006. The trend was particularly strong across key gold markets like China, India, Middle East and Turkey.According to the gold demand trends released by the World Gold Council (WGC), factors like return to normal levels of the gold price volatility, growing acceptance by the consumers of a price that averaged six per cent above the gold price in the same period a year ago and strong economic performances in the key consuming regions helped the metal to set records in the second quarter of the current fiscal.
In tonnage terms, India achieved all-time records in gold jewellery and its retail investment. Turkey noted a record demand for both the categories in the quarter while Russia recorded its highest ever increase in the jewellery demand. The global demand for gold in the same quarter increased by 19 per cent at 922 tonnes, a 27 per cent increase in value at $19.8 billion on year-on-year basis.
According to World Gold Council chief executive officer James Burton, "India’s total demand for gold of 317 tonnes in the second quarter of financial year 2007 was equivalent to half of the global mine output in the same quarter. Key factors like stable gold prices, a booming economy and Akshaya Thritiya festival have contributed to the demand for gold despite its high price of $600 per oz in the second quarter."
"The dollar value of the gold demand has more than doubled in the country within a span of four years," the World Gold Council chief executive told this correspondent adding that India is the world’s largest gold importing country.