Gold Demand Adds 10% on Investment, Jewelry, WGC Says

20 November 2009  Bloomberg.com

Gold demand climbed 10 percent in the third quarter from the previous three months after investors bought the metal as a currency hedge and jewelry purchases picked up, the World Gold Council said.

Global consumption increased to 800.3 metric tons as Chinese demand surged to 120.2 tons, the London-based industry group said in a report today. Total demand was 34 percent lower compared with a year earlier, when investors sought refuge from the economic crisis amid lower gold prices.

Gold jumped to a record this year as central banks and investors bought the metal as a hedge against potential currency debasement and inflation. India last month bought 200 tons of bullion from the International Monetary Fund and was followed by a smaller purchase by Mauritius, while Sri Lanka’s central bank said it intends to buy gold. The council expects more central banks to diversify from dollars to the metal.

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