Gold Investment Demand Up As QE Fears Grow – ETF’s Rise 56% In Q3

Tyler Durden's picture

From GoldCore Gold Bullion

Gold Investment Demand Up As QE Fears Grow – ETF’s Rise 56% In Q3

Today’s AM fix was USD 1,723.50, EUR 1,351.45, and GBP 1,087.66 per ounce. 
Yesterday’s AM fix was USD 1,724.50, EUR 1,353.08, and GBP 1,085.21 per ounce.

Silver is trading at $32.53/oz, €25.60/oz and £20.52/oz. Platinum is trading at $1,573.50/oz, palladium at $627.75/oz and rhodium at $1,100/oz.

Gold was relatively unchanged up $0.50 or 0.03% in New York yesterday and closed at $1,725.00. Silver fell to a low of $32.36 and recovered to $32.908, but slipped downward and finished with a gain of 0.65%.

XAU/USD Currency 1 Year – (Bloomberg)

Gold edged down on Thursday, but the looming US fiscal cliff, Eurozone debt problems and rising Middle East tensions continue to enhance the yellow metal’s safe haven appeal.

Yesterday, Israel launched its most ferocious assault on Gaza in four years after persistent Palestinian rocket fire, hitting at least 20 targets in aerial attacks and killing the top military commander of Hamas. The U.N. Security Council held a private(closed door) emergency meeting on Wednesday evening to discuss Israeli strikes against the Gaza Strip, since Israel threatened a wider offensive. Brent oil prices were holding above $109 per barrel. 

Minutes released from the US Fed’s October 24th meeting showed that “a number of participants indicated that additional asset purchases would likely be appropriate next year after the conclusion of the maturity-extension program.”

Today, the US Weekly jobless claims report is published at 1330 GMT.

The London Bullion Metal Association said that it expects gold bullion to reach $1,843/oz by September 2013, and forecast silver to reach $38.40.

The World Gold Council issued a report “Global gold demand reflects challenging global economic climate: ETFs up 56% and India up 9% in Q3 2012”  which showed that global gold demand fell 11% in the three months to September from record levels seen during the same period last year, which was curbed by a sluggish Chinese economy and stronger Indian demand limited the drop. 

In Q3 2012, gold investment demand (total bar and coin demand plus ETFs and similar products) was 429.9 tonnes down 16% from Q3 2011. Although the year-on-year snapshot for investment demand suggests falling interest, this is not the case. Rather, it highlights the strong demand seen in Q3 2011.

Interestingly, demand for ETFs rose 56% to 136t, compared to Q3 2011. Demand for gold-backed ETFs in Q3 grew significantly in the quarter partially due to institutions responding to the additional QE measures in the US and Europe.

XAU/EUR Currency 1 Year – (Bloomberg)

At 87 tonnes, Q3 2012 investment demand for gold surged from 78 tonnes in Q2, a rise of 12%. Examining this over the longer term, Q3 represents the first quarter-on-quarter increase in Indian investment demand since Q2 2011.

This ramp up in Indian demand has been driven, in part, by investors moving into the medals and imitation coin market, which was up 59% and the build-up to the wedding and festival season. The stabilization of the market, an increase in the retail outlet network and a gradual recovery of the rupee has helped cement this demand to result in India being the strongest performing market overall in the quarter.

In China, investment demand dropped between Q32011 and Q32012 and is down 8% year-on-year, due to dampened sentiment in response to the on-going regional economic slowdown. Compared to Q3 2011, investment demand in China is down 16%; however, current demand does remain well above the longer term average wrote The World Gold Council.

Despite the impact of wider economic events, Chinese consumer sentiment towards gold has not waned and it expects demand for gold in the country will increase.

In Q3 2012, jewellery demand increased was down 2% from Q3 2011figures to 448.8 tonnes. The ongoing slow down in China – the second largest jewellery market – has impacted global demand in the sector across 2012 to date.

Jewellery demand in China fell by 6% to 123.8tonnes in Q3 2012 due to the ongoing economic growth slowdown and the resulting dampened sentiment. Despite this, however, as consumers adjust to the change in Chinese trajectory we expect that demand will notably increase.

Indian consumers resumed purchasing gold jewellery as gold prices stabilised prior to the key wedding and festival seasons. Demand for gold jewellery increased 7% to 136.1 tonnes in Q3 2012 as the rupee recovered and consumers adapted to pricing levels.

During Q3 2012, gold demand in the technology sector fell by 6% year-on-year to 108.0 tonnes, equivalent to a value of $5.8 billion.

Not all areas of the technology field suffered from declines during the quarter, however, with the use of gold in electronics continuing the incremental growth seen in 2012 so far. Use of gold in electric goods such as tablets, mobile phones, fuel cells and medical diagnostic equipment increased, helping to sustain overall demand figures. We expect this trend to continue, as evidenced by the increasing number of new technology patents involving gold components.

Stephen Flood, GoldCore CEO commented "The World Gold Council’s Quarterly Gold Demand Trends report provides interesting reading. Global Investor demand for gold has not at all wilted; investors still feel that inflation pressures are significantly to the upside. Quantitative Easing or Money Printing may afford short term relief to contracting economies but in the long run, and throughout history, it leads to massive economic dislocations. Gold remains the ultimate safe haven asset for investors who seek a reprieve from these uncertain times.”

For breaking news and commentary on financial markets and gold, follow us on Twitter.         

Cross Currency Table – (Bloomberg)


Gold Demand Down, World Gold Council Says – Nasdaq

India gold demand reverses trend, rises 9% in Q3: WGC
– Money Control

Hong Kong Gold and Silver Exchange seeks warehouse in China - Reuters

New silver trading platform to lift HK's hub – China Daily

Gold retreats but remains near key level – Market Watch

Gold slips as oil pares gains;eyes on Middle East - Reuters

Gold ends higher, back above $1,730 an ounce – Market Watch


Video: Gold Demand Trends Q3, 2012 – The World Gold Council

Video: Gold Loses its Shine as Demand Falls - Bloomberg

A Change is Coming – Gold 2013 & Onwards – 24H Gold

Gold and the Cold War - GoldSeek

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GetZeeGold's picture



Damn.....I hope the kids at the 7-11 store don't find out about this. It could turn into bedlam.


Good thing most people think the financial cliff is a vacation spot in Yellowstone Park. There's really no reason you shouldn't be front running the masses.


quasimodo's picture

I quit reading after I saw the "ETF's"

The other day I read demand was down over which is it? 

GetZeeGold's picture



ETF's make you feel good.....the same way heroin does.

new game's picture

certainly a distortion of reality! i guess the grasp of control might be slipping thru the geasy hands as market of phys will prevail.

but for now we watch patiently as the relic has no life cycle.... 

Stock Tips Investment's picture

With so many dangerous elements for the global economy, you can expect gold prices continue to rise. By the nature of this investment, is known its high volatility. However, all indications are that gold will continue to be a very profitable investment in the long term. Not only because of the demand that India and China can generate. It is likely that every day, more investors and traders include gold as part of their positions. That will generate a much greater demand than its price could lead to unimagined levels.

jjsilver's picture

Everything is rigged, there is no way of knowing. Anyone who buys these paper etf's are enabling the satanic bankers in their efforts to suppress the price of gold and silver.

tmorris's picture

I think the author said "physical" ETF's are up - big difference!

fonzannoon's picture

I am all ears if someone would like to try to rationally explain the selloff this morning to me.

GetZeeGold's picture



What did you think they were going to do with all that hot QE cash?


Welcome to the mind screw. I'm just being very quiet and taking the subsidized gold.....trying not to make a scene

fonzannoon's picture

Judging by your posts every morning I imagine you make a scene everwhere you go.

that's a good thing.

peekcrackers's picture

Paper humpers alway's blow there load quick and fast !

PM PHYS holders stay Long and hard !


peekcrackers's picture

CFTC Commissioner Bart Chilton can give you a 4 year answer . I would say at that rate , i would set a side 6 years just to get proper understanding

Anasteus's picture

The selloff this morning is nothing dramatic, it's a standard low-scale profit taking. The fact that gold price is still stumbling despite the pile of positive fundamentals is more surprising and virtually inexplicable as far as the manipulation efforts are not considered. Gold cannot jump too high under any circumstances for obvious reason as it would undermine the illusion of strong (or at least valuable) dollar. If this happens an imminent free fall has to be orchestrated via paper gold gambling or by cranking up the swap/lease carousel (see gold lease rates on occasion and notice the correlation between negative rate dips and gold price dips). Another important aspect of the manipulation is to scare off investors and to undermine the credibility of gold trading as such. That's why gold investors are expected to have nerves of steel, or even of tungsten.

But these days, as it seems to me, we are witnessing a slightly different scenario. Despite the strong fundamentals (one can hardly imagine stronger) gold price overall is tenaciously constant. I guess the suppression scheme today serves Western central and private banks as well as hedge funds to help them pile into gold for affordable prices to meet the upcoming Basel III collateral requirements. This all likely goes hand in hand with hidden agreement between the USA and China (because of various possible reasons) as China has joined the party as well. The paper market is thus completely decoupled from the physical metal in favor of strong and cheap physical deliveries running silently behind the scenes. In my opinion, the trend will continue for a while, the price can even temporarily turn south but after certain period the suppression will become unsustainable or even undesirable. After then we'll very likely see prices skyrocketing.

Bansters-in-my- feces's picture

fonzannoon. Do you mean rational to you or rational to the ESF and the PPT..?

iM TINKIN its tImMy.


Quinvarius's picture

We just pretty much had QE4 announced.  No doubt GS is laying on the algos they bragged they could take down the market with.  But you have to load up on their dime.  Pretty much everything is a buy.  The risk is 100% upside, not 20% downside.  All that matters to the markets is easy money.

fonzannoon's picture

Quinvarius it seems to me with the previous QE's that were announced it was all about the run up prior to the announcement. They seem to be flailing now. No rumors anymore, just flat out announcements, and it ain't working. Sure we could see a bounce but it will be sold.

Quinvarius's picture

We haven't even seen the effect of the first QE getting loaned into the economy yet.  Do not get tricked or Kaminskied by the clownstreet clowns.  This dip is as fake as the one that happened just after QE1 was announced.  You gotta buy it.

TrumpXVI's picture

I bought another half ounce gold Eagle yesterday along with another 10oz silver bar.

Just keep stackin'.

edb5s's picture

About time for a boating trip, eh?

apberusdisvet's picture

There's been a lot of news lately, directly from the miners, that global production will drop; higher costs, lower grades.  Many marginal projects have been shelved.  Then there's resource nationalism and labor strikes to add to the mix.  Also, there is a lot of truth to the theses of geologists that we've already passed peak gold (also silver) on the planet.

Both the World Gold Council and the Silver Institute are bankster controlled entities; their disinformation/propaganda should be totally ignored.  Keep stacking.

fonzannoon's picture

So when do the miners say "hey, we thought about it....and we'd like a lot more for this stuff!"

Bansters-in-my- feces's picture


We all know how pro gold the WGC is.

About as pro gold as Jon Nurdler.....

Ps.....Fuck you Nadler

akak's picture

I have seriously considered attending one of those Cambridge House Investment Conferences at which Nadler has occasionally shown his face just to meet him in person and then punch the mother fucker in the face with all my strength, that is, after kicking him as hard as I possibly can in his nadless nads.

new game's picture

not sure which is a better use of fiat- m4 or au. both are fun to look at; perfect compliments, like decorating...

BBullionaire's picture

Todays the buying opp I'd put money on it infact I will here at 1717

BBullionaire's picture

and whoosh 1722 what just happened?

slackrabbit's picture

aaaannnnddd iiiiittttttt'ssss ggggoooonnnneee

slackrabbit's picture

I enjoy the propaganda.

So long at the sheeple aren't buying there is more for us......long live the slow burn till Guy Folks day.

Im actually hopeing they can spin this thing another 5 years.

Keep on stacking...

e-recep's picture

i tought screwing the sheeple was a sin, no?

Stuart's picture

These ETFs, all this paper gold being taken off the market.



noses's picture

Seriously... where *is* all the paper-gold (I'm not talking about real gold here) backing the paper gold circulating in the market? Even adding up all documented gold in the funds the ETFs are based on I can't see enough virtual gold to cover all the paper being bought and sold in circles. How heavily overcommited is this market (and what will happen if unwinding is needed)? Will someone hire Corzine to just vaporize all the paper or will the fund employees have to be indentured to print shops to produce the certificates? And if they all are busiy printing paper gold – who will be sent to the mines for digging out the stuff al that paper is based on?

peekcrackers's picture


magic kingdom park


3111 World Drive
Orlando, FL

Should be there.. ask for a gentleman name Peter Pan .. He might have the answers

Bansters-in-my- feces's picture

ETF's are not Gold.

Bansters-in-my- feces's picture

What the hell is an "imitation coin market"?

Kinda like an ETF...???