Precious Metals Outlook
Investment Demand Continues to Soak Up Excess Supply
The World Gold Council released their second quarter 2009 “Gold Demand Trends”
last week (see full document at www.research.gold.org for additional detail). We
summarize the key highlights below:
Jewellery demand rebounds from Q1 levels but remains well off 2008 levels.
Jewellery demand rebounded 17% to 404.1 tonnes in Q2, however, demand was still
down 22% on a year-over-year basis.
Gold bullion ETF demand cools following a record-setting Q1. Gold ETF
demand was 56.7 tonnes, down from a record-setting 465.1 tonnes acquired in Q1.
Net retail investment demand remains strong. Net retail demand for bar and
coins was 165.7 tonnes, up 23% q/q and 12% y/y.