Friday, 24th February 2006 (3407 views)

Gold sales hit a record level of $53.6 billion last year, World Gold Council figures reveal.

In terms of dollars, this represented double-digit growth in all demand categories – jewellery, industrial and investment.

Last year was described as "momentous" for gold demand by World Gold Council chief executive James Burton.

He said: "It is clear both from the success of the gold backed ETFs as well as our own marketing to financial audiences that long-term investors are increasingly taking advantage of the investment benefits of gold."

One reason for the increased demand was investors turning away from shares and bonds over concerns about terrorism.

Another was growing demand from India, which saw 14 per cent growth in tonnage terms. Gold is an important commodity in India, where gold jewellery is particularly popular.

Demand in Saudi Arabia and China also grew significantly, by 12 and eight per cent respectively.

The news comes as producer Barrick Gold posted a 12 per cent increase in fourth quarter earnings from a year previously and as the Swiss watch industry reported record sales of gold watches.

 

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