2006 Gold Demand Record $65.3 Billion
(February 22, '07, 3:32 Edahn Golan)
Record high gold prices during the year drove 2006 demand for gold to a record of $65.3 billion. However, the high price also caused a drop in purchases of gold in terms of weight by central banks. At $44 billion, gold jewelry sales also set a record high.
In 2006 jewelry demand rose 14%
in value, but fell 16% in weight
Despite a fall in production and reduced supply, industrial demand was the highest ever at 458 tons, according to figures released by the World Gold Council. Supply fell 13 percent by weight.
Jewelry demand rose 14 percent in dollar terms in 2006 as a whole, but fell 16 percent in weight due to a volatile gold price in the first half of the year. Demand for investment gold increased 7 percent over 2005 to 637 tons and 45 percent in value.
The WGC reported that 2007 has begun with brisk demand in most jewelry markets in January, while investor interest has also remained positive. Market research findings show that sentiment towards gold jewelry in key markets remains strong. Prospects for both jewelry and investment demand in the first half of the year are good, WDC predicts, although any return of excessive price volatility could hinder jewelry purchases.
