Global Gold Demand Up; World Gold Council Establishes Conflict-Free Gold Standard, proposes gold collateral plan for Eurozone members
The global demand for gold in 2012 has remained more consistent as compared to 2011. The demand for the yellow metal in the third quarter of 2012 was significantly higher than the quarterly average of the past five years, according to the Gold Demand Trends Report released by the World Gold Council.
Worldwide demand for ETFs in Q3 2012 rose by a whopping 56% as compared to Q3 2011. To take things further, there was a substantially higher demand for gold as an investment option rather than jewellery. While investment demand spiked by 12% in 2012 as compared to 2011, jewellery demand went up by 7% in the same time frame.
The story, however, was different in China. Gold demand decreased by 8% in Q3 2012 as compared to Q3 2011. The cause of this was the largely negative outlook on the nation’s economy.
In other news, the World Gold Council recently published the Conflict-Free Gold Standard with comprehensive inputs by gold mining conglomerates, supply chain representatives, members of civil society, and governments. This was undertaken in an effort to address and combat the misuse of mined gold being used to fund civil unrest and conflict in politically unstable regions.
The Conflict-Free Gold Standard strives to ensure transparency and institute trust in gold supply chains. It also outlines principles that require mining companies to refrain from causing or escalating violent, armed conflict and other human rights atrocities. The Standard elaborates on the fact that gold mining can contribute to social and economic development worldwide if undertaken responsibly.