Quote of the Month – Mr. Marcus Grubb
Consumers around the world bought gold in record amounts in 2013, led by demand in China and India, with China becoming the world’s biggest gold market, according to the latest World Gold Council Gold Demand Trends report. Marcus Grubb, Managing Director, Investment Strategy at the World Gold Council said, “2013 has been a strong year for gold demand across sectors and geographies, with the exception of western ETF markets. Specifically, it was the year of the consumer. Although demand has continued its shift from West to East, the growing demand for gold bars, coins and jewellery is a global phenomenon. Taken together, the statistics demonstrate the resilience of the gold market and the unique nature of gold as an asset class, rebalancing to reflect the economic environment.
Consumers remain key drivers in the demand for gold. China and India both recorded increased demand in 2013. Global consumer demand strengthened and Indian demand remained strong as well. In 2014, China will exceed or equal the record 2013 figure. Because we had a third growth in the market—over 30 percent demand growth. And, of course, part of that was related to the price drop in gold last year. In India, there’s a chance of an upside surprise there if import controls get abolished later in the year. If that happens, it’ll have a big impact on the gold market; there’s no doubt about that.”