Gold Demand Climbs 11% as Investment Drives Prices to Record, Council Says

Gold demand rose 11 percent in the first quarter as China helped boost investment and jewelry usage, while demand will remain "firm" throughout this year,
Global demand gained to 981.3 metric tons in the quarter, compared with 881 tons a year earlier, the London-based industry . China's consumption surged 47 percent in the quarter and may double before 2020 as the growing population's wealth increases and near-term concerns about faster inflation spur investment, the council predicts.
Consumers in China and India "continue to view jewelry not just only as an adornment, but as a good investment.

In the history of gold "Inflation pressure is still an ongoing issue. These concerns are not going away." Prices averaged $1,387.67 in the first quarter, up 25 percent from a year earlier and 1.3 percent more than the fourth quarter.Central banks are adding to their reserves for the first time in a generation, helping prices extend a 10-year rally, the longest run of gains in at least nine decades.

Central bank and government institution purchases doubled to 129.3 tons in the first quarter, exceeding the amount bought in the first three quarters of last year, the council said. Countries will remain net buyers this year, it said.
Total supply declined 4.4 percent to 872.2 tons in the first quarter from a year earlier as central banks purchased the metal and as scrapping fell 6 percent to 347.5 tons, the council said. Mine output rose 7 percent to 663.9 tons.