“No review of 2013 would be complete without a mention of the
unprecedented flow of gold from western vaults to eastern markets, via
refiners in North America, Switzerland, and Dubai,”
Commodity Online
The World Gold Council, a
collective of gold miners across the globe and an authentic source on
gold related information outlines how the fervent demand from the
markets in the East resulted in an epic transfer of yellow metal from
the West. By East, one should primarily assume India and China or
perhaps, Chindia!
“No review of 2013 would be complete without a mention of the
unprecedented flow of gold from western vaults to eastern markets, via
refiners in North America, Switzerland, and Dubai,” the council stressed
in its report ‘Gold Demand Trends’ for the full year of 2013.
As the price of yellow metal dipped in April and June last year,
consumers put on an impressive show of buying. In a feverish pitch, they
alone, across the world, generated 21% increase in gold demand; demand
for jewellery, small bars and coins took the consumption figures to well
around 3,863.5 tons for last year. The impact of lower prices was
widespread across the globe in H2, 2013, especially in the jewellery
sector. When the macro sentiment pertaining to the economy in US got
improved, this resulted in a steady flow of gold from the ETF vaults as
well, a phenomenon marked by tactical selling.
“These shifts resulted in the shipment and transformation – on an
epic scale – of 400oz London Good Delivery (LGD) bars into smaller
denominations more suitable for consumers’ pockets,” the WGC report said
as low prices fuelled a fiery retail demand fire of historic scales.
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