Whiteflash-Diamond Playground

From JCK - Worldwide gold demand for jewelry increased 6 percent in tonnage terms and 16 percent in dollars in the third quarter, according to the World Gold Council. The rise in gold jewelry demand in Asia, the Middle East, and Russia offset declines in the United States and parts of Europe. U.S. gold jewelry demand fell by 13 percent in the third quarter from year-earlier levels due to the impact of the high gold price and a slowing economy, WGC said in its “Gold Demand Trends,” released Thursday. However, high- and mid-market demand for gold jewelry remained brisk. The report says that a change in demand patterns became evident during the third quarter as investors rather than jewelry buyers became the dominant force. At 138 tons, investment in Exchange Traded Funds and similar products were at a quarterly record. Total gold demand for the quarter reached a record 20.7 billion, up 30 percent year-over-year. “It is clear that gold’s safe haven and hedging characteristics have been a major attraction to investors during this period of instability, greater inflationary fears and a falling dollar,” said James Burton, WGC chief executive officer. “Looking forward, we believe that investor interest will remain very strong in the near future and that, as the price stabilizes, major gold jewelry buying nations, such as India, China and the Middle East, will quickly adapt to a higher floor in the price.” (full story)