Data released by the World Gold Council (WGC) shows that despite a rally in gold demand in Q4 2017, with demand rising 6% year-on-year to 1,095.8 tonnes, full-year demand fell by 7% to 4,071.7 tonnes.
Annual gold ETF (exchange-traded fund) in 2017 added 202.8 tonnes to demand – around one-third of 2016 . According to a press release, “European-listed ETFs accounted for 73% of net inflows, with investors keenly attuned to geopolitics and negative interest rates”.
Bar investment was stable, but coin investment fell 10%, mainly due to “a sharp drop in US demand to a 10-year low of 39.4 tonnes, which exceeded strong gains in both China and Turkey”. In 2017, the jewelry sector experienced its first annual increase in jewelry demand since 2013 (+4%). India and China led the demand in jewelry. Additionally. increased use of gold in smartphones and vehicles “sparked the first year of growth in technology demand since 2010”. Finally, mine production reached 3,268.7 tonnes, while recycling fell 10%.
