Gold Bars and Coins Demand Soars in India
INVESTMENT demand for Gold Bars and coins grew strongly in India during the second quarter of the year, new figures published today show.
In the three months to the end of June, Indian investors bought Gold Bars and coins equivalent to 108.5 tonnes of Gold Bullion – a 26.8% rise from the first quarter – according to the World Gold Council's Gold Demand Trends.
The second quarter of the calendar year has traditionally been associated with a drop in gold demand compared to Q1. In 2010, for example, Indian demand for Gold Bars and coins fell 23.1% to 61.0 tonnes.
Overall Indian demand was down 14.9% quarter-on-quarter, with gold jewelry demand falling 32.2% to 139.8 tonnes.
In China – the world's second largest consumer of gold – demand in Q2 2011 was down across the board. Total demand fell 33.3% to 155.9 tonnes. Gold jewelry – down 28.0% – accounted for 102.9 tonnes, with the remainder taking the form of Gold Bars and coins.
China made news in Q1 of this year when it bought more Gold Bars and coins by weight than India. In Q2, however, figures show Chinese demand for Gold Bars and coins fell 41.7% to 53.0 tonnes.
The same pattern was observed in the second quarter of last year, when demand for both gold jewelry and Gold Bars and coins fell in China from Q1 2010.
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