Global gold demand dips 4% to 3,924 tonnes in 2014: WGC

Jewellery remains biggest user of gold, with strong demand from UK and US, up 18% and 9%, respectively

The global gold demand in 2014 declined marginally by 4 per cent to 3,924 tonnes compared to the previous year even though 2013 was an outstanding year where the consumer demand had reached a record high, says the World Gold Council (WGC).

The overall gold demand stood at 4,087.6 tonnes in 2013, according to WGC 'Gold Demand Trend 2014' report.

"The year 2014 was a year of stabilisation and innovation in the gold market with annual gold demand down by just 4 per cent at 3,924 tonnes after the record-breaking level of buying seen in 2013.

It was a standout year for Indian jewellery despite government restrictions on gold imports, reinforcing the nation's affinity with gold," WGC Managing Director, Investment Strategy, Marcus Grubb said.

Meanwhile, Chinese gold demand returned to levels last seen in 2011 and 2012 as consumers and investors took time to digest the substantial volumes accumulated in 2013, he said.

The WGC Gold Demand Trend 2014 further revealed that jewellery remained the biggest component of demand for gold.

Indian demand for jewellery was up 8 per cent to 662 tonne, the best year of jewellery demand since records began in 1995 and China's jewellery demand, while down by 33 per cent, was still the second best on record, it said.

There was also strong jewellery demand in the UK and US, driven by improved economic performance, up 18 per cent to 28 tonne and 9 per cent to 132 tonnes, respectively.

However, overall jewellery demand fell by 10 per cent to 2,153 tonne as China digested the record breaking levels of jewellery accumulated in 2013.