Worldwide demand for gold rose a record 5% between the first quarters of 2000 and 2001.
The World Gold Council reports that demand for gold jewelry and personal investment in the world’s 27 leading gold-consuming countries increased to 826 tonnes.
The upward trend in jewelry demand held steady, with consumption 6% higher at 735 tonnes — also a record for the first quarter. Meanwhile, investment demand fell 3% to 91 tonnes.
In India there was a strong rise in consumption, which at 243 tonnes was 23% higher than in the first quarter of 2000. Demand was boosted by a buoyant season of marriages and festivals and by restocking by retailers.
New first-quarter records for gold consumption were set in several other countries. For example, the United Arab Emirates consumed 17% more gold than a year ago, and Mexico consumed 10% more.
In Japan, jewelry demand was 19% higher than in the year-ago period.
Together with smaller increases in some other markets, these results more than compensated for sharp falls in demand in Turkey and Taiwan, down 38% and 31%, respectively, as a result of economic difficulties.
“In the immediate future, economic slowdown may dampen growth in the U.S. and some other markets, but the underlying trend in gold jewelry consumption is strong,” says Haruko Fukuda, chief executive officer of the World Gold Council.
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