It's been a tough time for investors in the yellow metal.
However, committed investors would have found the last quarter a good time to add to their holdings.
Prices were weak. Demand was low.
The global situation to June 30 has been released in a report released by the Gold Council today.
That report shows:
• Jewellery demand was down -14% year-on-year mainly because key markets in India and China pulled back. In fact demand was at its lowest level since September 2012.
• Demand from investors for coins and bars was down -11% to only 201 tonnes, the lowest level since March 2009, and 66% lower than demand from investors in the June quarter in 2013.
• Hedge funds are still net sellers, quitting another 23 tonnes in Q2. That makes a total of 1,096 tonnes they have sold since December 2012.
• The only buyers were central banks, not all central banks but especially those from countries of the former Soviet Union. They bought a net 137 tonnes. Goodness only knows what would have happened to prices if Russia, Kazakhstan, and Belarus hadn't bought their 82 tonnes, supported by Jordan's 13 tonnes in the first half of 2015. How long the Russian buying can continue given the sharp decline in the ruble is a worrying question.
Low prices also discourage sellers, especially those offering the metal into scrap markets. Only 251 tonnes were offered in the June quarter, the lowest level since September 2008.
Overall, demand fell -12% year on year and supply fell -5%.
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Here are the Demand trends (in tonnes of gold globally sold per quarter):
Here are the Supply trends (in tonnes of gold supplied globally per quarter):