Identifiable gold demand fell 34 percent year over year in tonnage terms during the third quarter according to a report from The World Gold Council.
However, gold demand rose 10 percent during the third quarter over the preceding three months as investors bought gold and sales of jewelry grew.
In part, report attributed the overall drop to the fact that investors sought refuge in during the third quarter of 2008 because of the global financial crisis, and noted that on a 12-month trailing basis, gold demand has risen 2 percent over the preceding 12-month period.
“In the U.S, total gold off-take in the third quarter was 17 percent below the levels of Q3 '08, equivalent to a fall of 9 percent in U.S. dollar value terms,” the report said.
Additional gold statistics show that the total supply of gold contracted slightly in the third quarter, coming in at 8 percent lower than the second quarter and 5 percent below year earlier levels.
The key factors weighing on supply were an increase in producer de-hedging and a negative contribution from the official sector in addition to lower levels of scrap than previous quarters.
However, mine production showed a firm improvement during the quarter, reaching 670 tons.
Hedge fund manager and Paulson & Co. head John Paulson plans to launch a new gold fund dedicated to buying shares of bullion-relayed investments, The Wall Street Journal reports.
The new fund will aim to outperform gold prices by investing in gold-related shares and derivatives.
Paulson currently has more than 10 percent of the approximately $30 billion he manages in gold-related investments.
© 2017 Newsmax. All rights reserved.