India replaced China to emerge as Biggest Gold Consumer in World: Thomson Reuters

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Who: Gold Survey Q3 2015 Review and Outlook
What: Released by GFMS team of Thomson Reuters
When: 17 October 2015

GFMS team of Thomson Reuters on 17 October 2015 released Gold Survey Q3 2015 Review and Outlook. The survey says that India regained its top position replacing China as the biggest overall consumer of gold in the first nine months of year 2015.

India consumed a total of 642 tonnes of gold in this period, while China is trailing by just 63 tonnes with total consumption of 642 tonnes in first nine month of the year.

Highlights of the Survey in Context of India
• It says that jewellery consumption in India increased by 5 percent year-on-year to an estimated 193 tonnes in Q3 2015, which was the highest quarterly consumption since Q1 2011. Q3 consumption was also the highest third quarter demand since 2008.
• Retail investment rose 30 percent year-on-year to 55 tonnes, the highest since Q4 2013.
• The rise in consumption in Q3 was credited to the fall in local gold prices to the lowest since August 2011.
• The total official gold imports to India in the third quarter increased by 23 percent to 263 tonnes, which is the highest quarterly volume year-to-date.

Highlights of the Survey in Context of China
• In context of China, the survey says that after a lackluster Q2 2015 gold demand rebounded in the Q3. The Q2 demand was the lowest second quarter recorded since 2011
• Total gold demand amounted to 196 tonnes for the period, a modest 3 percent year-on-year improvement.
• The demand improved in Q3 due to by factors like the yellow metal regaining its attractiveness as an alternative investment vehicle as investors turned cautious of the equity markets.
• Demand for the precious metal, both in the form of jewellery and investment bars, picked up immediately after gold price breached 1100 US dollar in mid-July 2015, also helped by rise in seasonal demand, lead by Chinese Valentine’s Day in August 2015 and the autumn festival in September 2015.
• Official depreciation of the yuan, announced on 11 August 2015, was also a region behind boosted demand of gold.

In context of Global mine production; the survey said that production remained broadly flat in Q3, as it was up by less than 1 percent year-on-year, with production provisionally estimated at 851 tonnes.