U.S. demand for gold increases despite global shortcomings

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While the international demand for gold jewellery is lagging, U.S. demand continues to increase.

In its latest quarterly report, the World Gold Council (WGC) revealed that Mother’s Day helped boost the U.S. gold jewellery demand 1 per cent in volume to 25.9 tons. This was the market’s 10th consecutive quarter of year-over-year growth. Demand for the first half of the year totaled 48.6 tons, the market’s strongest first half since 2009.

“Consistent, if moderate, economic growth and improving employment levels are supporting demand, although enthusiasm in the sector can be expected to wane over the coming months as the elections draw nearer,” the WGC said in its report.

Globally, the demand for gold jewelry fell 14 per cent in the second quarter and is down 17 percent year-to-date due to the metal’s rising price. According to Kitco.com, gold started out the year with an average price of $1,097.37. By June, it had risen to $1,324.55 and is at $1,363.75 for August.

As such, those struggling to sell gold in the Canadian market or overseas should turn their attention to the U.S. market. At a time when other countries are losing interest in the yellow metal, America is looking like a lucrative market.

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