Saudi gold demand up 18% in Q3  

(MENAFN - Arab News) The World Gold Council (WGC) Regional Office in Dubai has released its quarterly 'Gold Demand Trends' report, which reflects record figures for the third quarter (Q3) of the year. The report says that gold demand in Saudi Arabia increased by 51 percent in terms of value and 18 percent in terms of tonnage in Q3, 2008 compared to the same period of last year.

Total demand in the Kingdom in Q3 reached around 41 tons at a value of $1.5 billion. In the UAE, the increase was 22 percent in tonnage terms or 56 percent increase in value terms. Gold sales increased in other GCC countries and other Arab states as well.

Internationally, the dollar demand for gold reached an all time quarterly record of $32 billion in Q3, as investors around the world sought refuge from the global financial meltdown and gold jewelry buyers returned to the market in droves on a lower gold price. This figure was 45 percent higher than the previous record in Q3. Tonnage demand was also 18 percent higher than a year earlier.

The gold consumption figures for the world show retail investment demand (retail sales of gold coins and bars) rising by 121 percent to 232 tons in Q3, with strong gold bar and coin buying reported in Swiss, German and US markets.

The quarter also witnessed widespread reports of gold shortages among bullion dealers across the globe as investors searched for a haven. Overall, Q3 saw Europe reach an all time record of 51 tons of bar and coin buying and France became a net investor in gold for the first time since the early 1980s.