India had its strongest year for jewellery demand since the World Gold Council's records began in 1995, up 8% on a year ago to 662 tonnes, WGC said in the press release.
The demand was driven by wedding and festival buying despite the presence of government restrictions on gold imports for most of the year.
While, China saw demand decline 33% year on year, it still represents the second best year for jewellery demand in China since our records began, WGC said in the press release.
Annual gold demand was 3,924 tonnes, 4% lower than 2013. The year ended strongly, with gold demand in Q4 2014 up 6% year on year to 987 tonnes, driven by demand for jewellery and central bank buying.
According to the latest Gold Demand Trends report from the World Gold Council 2014, gold saw a stabilisation of the gold market as it pulled back from the extremes of 2013.
The year ended strongly, with gold demand in Q4 2014 up 6% year on year to 987t, driven by demand for jewellery and central bank buying, said in the report.
Here are the findings of the report are as follows:
- Following an exceptional 2013, gold demand stabilised in 2014, declining just 4% to 3,924tonnes.
- Jewellery remains the biggest component of demand for gold. Indian demand for jewellery was up 8% to 662tonnes, the best year of jewellery demand since records began in 1995 and China's jewellery demand whilst down 33% was still the second best on record.
- There was also strong jewellery demand in the UK and US, driven by improved economic performance, up 18% to 28 tonnes and 9% to 132 tonnes respectively.
- However, overall jewellery demand fell by10% to 2,153t as China digested the record breaking levels of jewellery accumulated in 2013.
- Annual central bank demand was up 17% to 477tonnes, the fifth consecutive year and 16th consecutive quarter that banks were net purchasers of gold.
- Investment was up 2% to 905 tonnes last year, despite a fall of 40% in bar and coin investment to 1,064t as consumers who purchased in 2013 held back from further buying. ETF outflows slowed significantly, from 880 tonnes in 2013 to 159tonnes in 2014.
- Total supply in 2014 was virtually unchanged compared to 2013 at 4,278 tonnes. Recycling contracted to a seven year low, down 11% to 1,122 tonnes. This offset the increase in annual mine production, up 2% to a record 3,114 tonnes, a level that we expect will signal a plateau over 2015.