Emma Wall: Global Demand For Gold Grows!

Gold demand grew 16pc over the past 12  months, with $59.7bn spent globally on the precious metal. The figure was boosted by China upping their investment by 10pc in a bid to hedge inflation.Gold demand globally hit 1,o98 tons in the first three months of the year, 5pc off the record high, but a significant increase on the same period in 2011. The World Gold Council's Gold Demand Trends report cited increased investment into the precious metal in China, as investor's continue to hedge against feared inflation. Jewelry demand in China also increased to 156.6 tons, 30pc of the global appetite. This increase places China as the largest jewellery market for the third consecutive quarter. Central banks across developed and emerging markets purchased 80.8 tons of gold in the first three months of the year, at an average price of $1,691, 22pc more expensive than in a year ago. Retail and institutional investors buying exchange traded funds (ETFs) accounted for $1.4 tons of gold purchased in the three months to the end of March, at a total value of $2.4bn. The World Gold Council stated that this movement was in stark contrast to the first quarter of 2011, when the ETF sector witnessed net outflows. How would a euro collapse hit us in the pocket? The only market to experience a downturn in gold demand was India, as high gold prices and the introduction of import taxed curbed appetites. Jewellery demand in the region fell 19pc and investment demand fell 19pc and investment demand fell a considerable 46pc. Marcus Grubb, from the World Gold Council said, "China and India have seen continuing economic growth, and while China's economy is expected to slow, it will nonetheless surpass the rates of growth in the West.