Global gold demand up

Global demand for gold in 2011 rose to 4,067.1 tonnes worth an estimated $ 205.5 billion — the first time that global demand has exceeded $ 200 billion and the highest tonnage level since 1997, according to the annual report of World Gold Council.
The main driver of the increase was the investment sector where annual demand was 1,640.7 tonnes, up by five per cent, on the previous record set in 2010 and with a value of $ 82.9 billion.
The pre-eminent markets for investment demand in 2011 were India, China and Europe. Central banks continued the trend established in 2010 of being net buyers of gold.
“From the figures of 2011, we can see that there were two main factors driving the results: Asian growth and optimism on one hand, and western desire to protect assets against uncertainty on the other," managing director of Investment Marcus Grubb has been quoted as saying. "Looking particularly at Asia, there was a major boost to the overall figures from the increase in Chinese demand, which is a trend that we see continuing over the next year."
It is likely that China will emerge as the largest gold market in the world in terms of demand for the first time, in 2012. "What is certain is that the long-term fundamentals for gold remain strong, with a diverse and growing demand base, coupled with constrained supply side activity," the report quotes him.