The data of the recently published report of the World Gold Council (WGC) on the trends of demand for gold (Gold Demand Trends) for the period from January to March 2014 indicate the return of long-term trends in the average consumption of gold that have been established over the past five years. In the first quarter of 2014, the demand for gold remained virtually unchanged compared to the same period last year and remained at 1074 tons - "a clear demonstration that the fundamentals of the gold market remain strong," the report said.
The global demand for jewelry (the most significant component in the total demand for gold) amounted to 571 tons in the first quarter, which is 3% higher compared to the same period in 2013 - "the strongest indicators of the beginning of the year since 2005".
The report notes that demand for jewelry in China has increased by 10%. Last year, China became the world's largest market for demand for gold.
World investment demand for gold decreased by 6 tons: from 288 tons in the first quarter of 2013 to 282 tons in the reporting period. The demand for gold bullion and coins fell by 39% and amounted to 283 tons. The most noticeable drop in gold consumption in this form occurred in India, where demand fell by 54% to 45 tonnes. This is due to the high import duty and the restriction of the import of gold into India.