Global gold demand declines 15 percent in 2013 -WGC

According to the latest data from the World Gold Council (WGC) report, global demand for gold in 2013 fell by 15 percent. Nonetheless, the WGC expects gold consumption to be heading towards a recovery point, and such a crushing drop like last year will not happen again.

According to the WGC, gold liquidity was undermined in 2013 by the return to the market of 881 tons of exchange-traded gold bullion. This indicates a 51 percent decline in investment demand, which reached 773.3 tons last year.

Meanwhile, according to a WGC report, consumer demand for gold items rose 21 percent amid the largest drop in the precious metal ounce in 32 years. The demand for gold products reached 3 thousand 863.5 tons.

In 2014, analysts expect a significant improvement in investment demand for gold. After a 4-year low in 2013, demand will recover in order to balance the improvement in global market sentiment. Thus, the WGC sees a positive return on gold at the end of 2014.

At the same time, the market notes a "massive and inconsistent" growth in demand for gold in China, emphasizing that in 2013 the Central Bank of China did not replenish the zloty stock.