Last week, the World Gold Council released its latest Demand Trends report for the third quarter, which showed that interest in the metal was much higher on the back of lower gold prices. According to the report, global gold demand rose 8% year-over-year in Q3, while global investment demand rose 27% and gold coin and bar demand in the U.S. surged 207%, its highest level in five years. Commenting on the findings, Juan Carlos Artigas, director of investment research for the WGC, told Kitco News that longer-term fundamentals remain positive for the yellow metal. ‘We do think there are good signals in the long run for the demand and for the balance of demand and supply in the market,’ he said. The higher interest in gold during Q3, according to Artigas, was due to the lower gold price, adding that interest was not only coming from consumers but also from the official sector. ‘Interestingly enough, central banks this quarter had a very strong performance. It was actually the second-strongest net buying that has occurred,’ he noted. Looking at gold supply, Artigas said he expects mine production to move lower, which eventually should be price supportive. ‘The reality is that from the supply side, it’s not only mine production, it’s a combination of mine production and recycling, and that, overall, has been fairly constraint,’ he said. ‘We expect mine production to taper off over the next year or two.’
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