Gold prices have soared to all-time highs despite a demand paradox
Consumption in Asia has slumped but investment and speculative demand in the west has soared
London
INVESTMENT and speculative demand mainly in the US and Europe have pushed the gold price to all-time heights of almost US$2,000. In contrast, consumption in India, China and the rest of Asia has slumped.
The result is that gold is flowing from booming mines through to refiners towards the west instead of the east, historically the bulwark of gold demand.
The latest demand trends of the World Gold Council (WGC), a mine producer funded lobby and research group, illustrate the consequences of Covid-19 and high prices. Jewellery, bars and coins demand in China, the world's biggest consumer, slumped 48 per cent to 243.7 tonnes in the first half of the year from 468.5 tonnes in the same period in 2019. India, the second biggest gold jewellery, bars an…
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