LONDON (Scrap Register): European Gold bar and coin demand slipped 15% year-on-year to 33.5 tons during the second quarter of this year, according to the World Gold Council.
Germany, which accounts for the lion’s share of the European market, saw demand fall 9% year-on-year. This combined with a relatively soft Q1 to produce the weakest H1 since 2008.
Bullion dealers in the region noted that retail investors were less concerned than ETF investors about the impact of the Italian elections and European Central Bank interest rate rises, and that a gold price above €35k/kg for much of Q2 (due to euro weakness) was perceived as relatively expensive.
Some dealers reported an upturn in activity as the euro-denominated price fell sharply towards the end of the quarter, but it was too little too late for Europe’s Q2 Gold bar and coin demand estimate
