Supply and demand statistics

Gold Supply and Demand – Q1 2009

Tonnage gold demand in the first quarter of 2009 was up a strong 38% on the levels of a year earlier. In $US value terms, this represented a 36% rise to $29.7bn. Global economic conditions continued to take their toll on jewellery and industrial demand while underpinning safe haven demand from investors.

The gold price averaged $US908.41 during Q1, down 2% on the Q1 2008 average. However, this relatively flat result in $US terms masks significant gains in local currency terms for consumers in several key countries, including India and Turkey.

The biggest source of growth in demand for gold was investment. Identifiable investment demand reached 595.9 tonnes in Q1, up 248% from 171.3 tonnes in Q1 2008. Taking into account inferred investment, which in the first quarter largely reflected investor flows into bullion accounts, total investment off-take reached 711.2 tonnes, up 173% on the levels of a year earlier.