Vietnam jewelry consumption slumps 17%, gold investment up 25% in Q3

Jewelry consumption in Vietnam in the third quarter slumped by 17% on year while investment demand soared by 25%, according to the World Gold Council (WGC)’s Gold demand trend report for Q3 2010 published on November 17.

Vietnam’s total jewelry consumption was 22.9 tons in the third quarter, of which identifiable investment accounted for 87.3%.

Global jewelry consumption was 529 tons while global identifiable investment was 281 tons in the third quarter, representing corresponding year-on-year increases of 8% and 19%.

However, total gold ETF demand fell by 7% from Q3 2009 to 39 tonnes. Following a remarkable surge in the previous quarter, which was supported by heightened sovereign risk and currency worries, this quieter period for ETFs reflects consolidation in the market, as it contemplated the prospect of QE2.

It is worth noting that global central banks hiked their gold holdings in Q3 2010, the report showed, in which Russia and Thailand raised its gold holdings by 7% and 19%, respectively.

The WGC forecasts investment demand for gold will continue to be supported by concerns over fiscal imbalances, the weakening greenback and associated fears of inflation and higher gold price expectations.

Read more: Gold Demand Trends Q3 2010

Posted by VBN on Nov 18 2010. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry