This growth was largely due to inflows into gold ETFs (Exchange Traded Funds, ETF), which amounted to 532 tons, which is the second highest value on record. Thus, investors reacted to concerns about the future of monetary policy, geopolitical uncertainty and negative interest rates in the various regions of the world. On this background the investment demand for gold jumped 70% to a four-year high in 1561 tons.
Alister Hyuitt (Alistair Hewitt), Head of Research at the WGC, said: "In 2016 we have seen an unprecedented degree of political uncertainty, which has led to huge investments in gold by institutional investors Retail investors, who for most of the year were not particularly active. quickly responded to the fall in prices in the fourth quarter, which is reflected in the jump in demand for physical gold market. We expect that investment demand for gold will remain high on the background of Neoprene delonnosti, which is likely to continue in 2017. "
While overall demand for gold from investors has increased dramatically, the consumption of gold jewelry dropped sharply, falling by 15% in 2016 to 2042 tonnes. Purchases by central banks also declined. Central banks are faced with a difficult situation, and the pressure on their foreign exchange reserves led to a drop of gold consumption by 33% last year to 384 tons. Despite this, in 2016 for the seventh consecutive year, the banks collectively bought, not sold gold.
Despite the strong consumer demand for gold in the fourth quarter of 2016, the two leading market for gold - India and China - experienced a drop in consumption in the last year, respectively, 21% and 7%. In China, demand for jewelry was lower due to high gold prices for most of the year, combined with a limited supply in the fourth quarter due to the tightening of exchange control in the country.
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The Executive Committee of the World Federation of Diamond Bourses (WFDB) will meet on November 1-2 in Idar-Oberstein, Germany, to discuss the current state of the global diamond industry and approve a new strategy. The meeting will take place in the building of the German Stock Exchange of Gems and Diamonds (Germany's Gemstone and Diamond Exchange).
"We have made very serious progress in developing a new and very active approach to the work of the WFDB," said WFDB President Ernest Blom, "We have approved our plan and will discuss it at the meeting."
Since the organization plays such an important role in representing the interests of the diamond industry, Blom believes that a clearer definition of the organization's strategy, mission, vision and values is critical. "We also agree with proposals to increase the number of our members by expanding the benefits of membership in the WFDB," he added.
"We will also discuss strengthening ties with industry and the media, trade organizations in major diamond centers, mining companies and laboratories," Blom said. "The meeting undoubtedly promises to be a major milestone in the development of WFDB leadership in addressing the issues facing the diamond industry."
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