The global gold market decreased by 21% to 869t in the third quarter of 2013, compared to 1,101.4 tonnes in the same period in 2012, according to a new report from the World Gold Council.
The average gold price for the quarter was $1,326/oz, 20% lower when compared to the same period last year, which pushed the value of gold down to $37bn in Q3, a decline of 37%.
Gold-backed exchange traded funds (ETFs) had net outflows of 119t in Q3, compared to 402t in Q2 2013.
The report said that jewellery and bar and coin demand increased 26% to 2,896t in the quarter.
Global demand for jewellery increased 5% to 487t in the quarter, compared to 462t in the same period last year.
Global bar and coin demand grew 6% to 304t in Q3, which took overall investment in bars and coins so far in 2013 to 1,252t, an increase of 36% compared to the first three quarters of 2012.
World Gold Council managing director for investment Marcus Grubb said, "The growth we are seeing in jewellery, bars and coins in particular, demonstrates once again the unique diversity of gold demand, as different sectors increase in prominence at different points in the global economic cycle, clear evidence of the ebb and flow of what is an extremely liquid market."
The report noted that the restrictions introduced by the Indian Government on importing gold through official channels had the intended effect of supressing demand.
Total gold consumption in India stood at 148t in Q3, compared to 310t in Q2 of this year.
Grubb noted that the intervention of the Indian Government in restricting gold imports to the country is reflected in the official levels of demand this quarter but by no means indicates that the appetite for gold in India is waning.
"We have seen some increases in demand in other countries that have close links with India, some of which may be making its way back to the country through illicit channels, which have reopened in recent quarters following a long period of inactivity," Grubb added.
Image: Third quarter gold demand of 869t was 21% lower than Q3 2012. Photo courtesy of freedigitalphotos.net.