Identifiable gold demand fell 34% year over year in tonnage terms during the third quarter according to The World Gold Council. This was partly due to the third quarter of 2008 having been a particularly strong period for gold demand given the global financial crisis. On a 12-month trailing basis, gold demand has risen 2% vs. the preceding 12-month period.
Still, one should note that even if we use this 12-month trailing comparison, Jewelry demand has slumped 20% year over year. Bar hoarding has dropped 19% as well. What has picked up the slack? ETF’s and general retail investment. Essentially, the traditional gold buyers appear to have been pulling back while retail has been booming. Today’s gold market is a whole new animal.
Still, the universe of potential retail investors is surely massive. The details are below, taken from the World Gold Council’s Q3 update.