Gold investment demand in tonnage terms may outpace jewelry usage due to investor concerns about the global economy and desire to diversify portfolios, the World Gold Council said Thursday.
“The structure of the gold market is changing,” WGC managing director Marcus Grubb told an audience at an ETF securities seminar here.
In 2008 gold investment accounted for 30% of total gold demand and jewelry accounted for 58% of total gold demand.
“In the first quarter I think investment demand could be higher than 30%” of total gold demand, Grubb said.
Grubb said jewelry demand from the world’s largest consumer, India, is suffering due to the effects of the recession.