WGC: World gold demand down 16% in 2014 Q2

World gold demand decreased by 16 percent annually in the second quarter 2014, while increased mine supply leading to 10 percent growth in total gold supply, said the London-based World Gold Council (WGC) on Thursday.
Gold demand in Q2 2014 was 964 tonnes, lower compared with 1,148 tonnes in Q2 2013, said WGC in its quarterly published report.
Jewellery demand was almost a third lower, while bar and coin investment was less than half Q2 2013 levels, it said.
Central banks remained a solid element of demand with net purchases of 118 tonnes in the second quarter, representing a 28 percent increase year-on-year, it added.
As for the supply side, world gold supply increased 10 percent, owing to a 13 percent increase in mine supply in the second quarter.
"Sharp declines in the consumer segments of gold demand came as no surprise, given the stark contrast in conditions in the global gold market between the two time periods," said Marcus Grubb, Managing Director of WGC's Investment Strategy.
"Jewellery demand weakened year-on-year, but the broad, 5-year uptrend remains intact," he added.
The WGC based in London is the market development organisation for the gold industry.