Gold recycling falls 3 percent in Q2, 2011: WGC

Gold  |  2011-08-18 08:22:15   |   By

Despite the higher prevailing prices, Q2 2011 witnessed a continuing downtrend in recycling of gold and gold supplies have also fallen on increased Central Bank buying

LONDON (Commodity Online): Gold recycling has fallen in the second quarter of 2011 at 429.3 tons, 3% down from 44.3 t in the second quarter of 2010, according to World Gold Council. In its Gold Demand Trends for Q2 2011 report, WGC said that gold supply was 1,058.7t in the second quarter of 2011, which was a 4% decline from 1,108.3t in the same period in 2010, as a result of an increase in net purchasing by central banks. Mine production rose by 7% to 708.8t from year-earlier levels of 659.4t in 2010.

The fall in recycling is a continuation of a trend that was visible from Q4, 2010, analysts said. Technology demand was up by 2% at 117.9t from 116.1t in the second quarter of 2010, generated by an increase in demand from the electronics segment. In value terms this was a quarterly record of US$5.7bn, up 28% from the next highest in Q4 2010 of US$4.5bn.

Second quarter 2011 global investment demand was 359.4t, 37% down year-on-year from 574.2t in the second quarter in 2010, which was the second highest quarter ever.
ETFs witnessed solid net inflows of almost 51.7t during the second quarter of 2011, which compared well to the previous 12 quarters (excluding two record peaks) where ETF inflows have averaged 41.4t.

Global gold demand in the second quarter of 2011 totalled 919.8t, down 17% from the remarkably strong levels of 1,107t in the second quarter of 2010. Gold demand in value terms grew by 5% year-on-year reaching US$44.5bn up from US$42.6bn in the second quarter of 2010. This is the second highest quarterly value on record, only fractionally below the US$44.7bn record that occurred in the fourth quarter in 2010.