Global gold demand soars
New York - The global demand for gold climbed to a record level of $53.6bn in 2005, a 17% leap from the $46.1bn in the previous year, the World Gold Council said on Wednesday.
The increases were fuelled by demand in India, China, the United States, the Middle East and Turkey, the marketing organisation of gold mining firms said.
Gold demand in Europe, on the other hand, was relatively stagnate, with demand in Italy and Britain actually falling compared to 2004, the council said.
In tonnage, overall demand was up 15% to 3 859 tonnes, a figure that was lower than the increase in monetary value because of soaring gold prices.
Investment demands had climbed by 26% to 600 tonnes over the previous year. Jewellery demand was up by 5% to 2 736 tonnes. Industrial demands were up 2% to 419 tonnes.
Momentous year for gold
"2005 has been a momentous year for gold demand, with record levels of consumer demand in dollar terms and a simultaneous surge in institutional investment," said James Burton, chief executive of the council.
"We have built up real momentum in 2005 and must continue our marketing and promotional work in the future to ensure that similar levels of growth are seen in 2006 and beyond."
The increasing demand for gold has pushed mining companies to ever greater means to retrieve the metal, and has provoked concern among environmentalists about the lasting damages of arsenic and other toxic metals that are released through mining and smelting into groundwater and surface waters.
The calculations were provided by the London consulting firm GFMS Ltd.
2006 has begun similarly to the end of 2005, with "price volatility leading to strong demand" for institutional investment but a "cautious approach" to jewellry purchasing, the council said.
In December, the price of gold surged above $500/oz for the first time in 18 years, and reached $554 at the end of trading on Tuesday.
Gold prices were $347 in December 2002. Gold's all-time high of $847 an ounce was reached in 1980, which adjusted for inflation since then, translates to about 2 000 dollars in current terms.
