2015 has so far seen a somewhat deflated gold market ride through various crises to arrive at the end of Q3 with the gold price having hit five year lows. Issues in world markets such as the devaluation of the Chinese Currency the Yuan and continued uncertainty over the course to be taken by the US Federal Reserve over interest rates have hurt prices and seen them slide to these five year lows.
It is not all bad news for the investor however. In the past week the results released by the World Gold Council have shown that the sliding gold price has led to a strong year on year increase in the demand for gold. The demand for gold from the various sectors of jewellery, coins and bars, technology and central banks has also increased from Q2 to Q3 in 2015.
In a break down the World Gold Council Report shows that amongst UK investors there has been a 67% increase in demand for both gold bars and gold coins. This increase which can in part be put down to a sustained marketing campaign by the Royal Mint in order to generate more interest in their products and also to the continuing uncertainty in European economies with relation to the Greek situation leading investors to continue to focus on the historically safe haven of gold. The five year low price has also naturally played a part in this increase in demand.
The increase is mirrored across the Atlantic where the US Mint reported the US Gold Eagle bullion coin has seen a staggering increase in demand of over 200% year on year which has resulted in the largest demand for the US Gold Eagle Coins experienced since 2010.
The Q3 figures show a distinct split between the beginning of the quarter and the end with the falling gold price at the beginning directly influencing the increased demand experienced across the whole quarter. It is also worth noting from the figures provided by the World Gold Council that provisional year on year production figures of gold fell slightly by 1% primarily due to the levelling off of production at mines around the world as they reach their natural capacity.
To further reinforce the reputation of gold as a safe haven for investment and an important commodity in world markets it has also been reported that the purchasing of gold by central banks has continued. This increase is primarily down to an increased demand from developing economies who seek the security of gold in uncertain times. We can see therefore that gold continues to play an important role in not only investor’s portfolio diversification but for entire nations looking to underwrite the value in their economies.
You can find the full report of the World Gold Council as a download from:
Be sure to check our website for more news articles and blog posts regarding the latest trends in the world gold market at: www.ukbullion.com and whilst you’re there check out our latest offers and new products for 2016 which are in stock now.
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