Thursday, 2nd June 2005 (4103 views)

The first quarter of 2005 saw demand for gold rise by about 26 per cent in volume, driven by successful jewellery promotion, higher sales of gold bars and new investment products, according to a report from the World Gold Council (WGC).

The figures were compiled by the precious metals research group, GFMS, and show gold demand totalled at 977 tonnes in the three months to March 31st, up 26 per cent on the same period a year ago.

A number of factors have been attributed to the rise in demand including increased and successful promotion of jewellery and an undercurrent of political and economic unease favouring gold investment.

These factors coupled with favourable price movements are identified by the WGC for the success.

James Burton, chief executive of the WGC, said: "We are particularly encouraged to see that the upward trend in gold jewellery demand over the last two years has been sustained."

In total, jewellery consumption rose 19 per cent to 688 tonnes, an increase of 25 per cent in dollar terms compared with the previous year. Jewellery accounted for 70 per cent of gold sales in the first quarter, up on last year's average.

The WCG said that, with the exception of Europe and Japan, all countries saw a year-on-year increase in demand for jewellery.

 

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