Overall demand grew by 9% to reach a 10-year high on increased jewelry demand, with strong momentum in key Asian markets and a paradigm shift in the official sector, the WGC says.
Demand for jewelry was the biggest contributor to gold demand, accounting for 54% of the total. That's a 17% rise despite gold prices jumping 26% in many currencies.
Gold demand for technology increased 12%. Surprisingly, investment demand declined 2% as investment in gold ETFs dropped 45%. Even with the drop, 2010 was the second-highest year on record in terms of investment demand.
India led the world in gold jewelry demand with more than 745 tons. China was a distant second at just under 400 tons and the U.S. third at 128 tons. While the pace of consumption has slowed in several countries, gold consumption for jewelry remains at elevated levels around the world.
The story behind the rise in demand is one you've heard from us before. The WGC's data is validation that the love trade is firing on all cylinders.
