Market panic and gold price fall sparks buying frenzy in China
Duncan Richardson, News Editor
12 Nov 2015, 4:21 p.m.
Following China’s decision to devalue the yuan in the summer demand for retail gold bars and coins has surged according to the World Gold Councils (WGC) latest report.
Coupled with a falling gold price in the third quarter global demand rose by 8% when compared to the same period last year to 1,121 metric tonnes. The prospect of a U.S. interest rate rise drove the gold price to a five year low sparking a global buying frenzy.
Global coin and bar demand rose 33% in the third quarter to 295.7 tonnes, led primarily by the Chinese. According to the WGC’s report gold demand in North America rose significantly to levels last seen during the 2008 economic crisis.
In Europe, physical demand for gold also spiked as investors turned to the yellow metal for protection against the Greek debt crisis.