The World Gold Council Released Gold Demand Trends For 2017

The World Gold Council released its Gold Demand Trends Full Year 2017 report noting a 6.6% decline in overall demand for the year with 4,072 tons, down from 4,363 tons previously. The largest sector of demand, jewelry consumption, rose 4.0% last year to 2,136 tons largely on increased offtake from China (+2.8%) and India (+11.5%). Technology demand also increased in 2017, up by 3.1% due to continued growth in electronics particularly for use in cell phones, tablets and laptops.

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However, sharp losses were recorded in investment demand (-22.8%) where ETF inflows and coin sales dropped off considerably in 2017 to 1,232 tons. Central bank demand was also lower last year, falling 4.9% to 371 tons. Total supplies fell 4.2% for the year largely on a 10.4% decline in recycling to 1,160 tons, more than offsetting primary mine growth which rose to a record 3,269 tons (+0.2%) despite a 9% decrease in Chinese output.

With data from consultancy Metals Focus, the WGC did note that overall demand for the December quarter grew 6.2% y/y, on continued improvements in the jewelry and electronics sectors and a strong turnaround in investment offtake, holding some promise for gains in physical gold consumption in the new year.

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Also in this week’s Platinum Market Review:

-North American Palladium announced a sizable increase in its palladium production for its fiscal year ending December 2017

-Platinum prices also fell in dramatic fashion last week losing some 8% in value from January highs

-Sibanye-Stillwater announced its results for the year ending December 2017
-Rhodium prices appeared unfazed by the gyrations in the bond and equity markets as the metal held on to most of its recent gains at $1,840 an ounce

Click HERE to read the February 12, 2018 Platinum Market Review

Disclaimer: 

Material contained in this report is based upon publicly available market data believed to be accurate and reliable and is presented for informational purposes only. KMR assumes no warranty or liability for its completeness, nor guarantees future market performance. Further, KMR assumes no liability for direct or indirect loss or damage from the use of information contained in this report, or from any unforeseen errors or omissions.

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About the author

Patrick Magilligan

PGM sales veteran Pat Magilligan is the Director of PGM Marketing at Key Metal Refining LLC. Magilligan has over three decades of experience in commodities trading, sales, and research, working with the likes of Merrill Lynch, Prudential Securities, and A-1 Specialized Services & Supplies Inc.