Continued growth in Q2 2016 (+15%) brought total H1 gold demand to 2,335t – the second highest first half on record. Huge ETF inflows during the first six months (+579t) were counterbalanced by anaemic jewellery demand in an environment of sharply rising prices. In fact, the gold price posted the strongest H1 performance (+25%) for more than 35 years.

Record H1 investment demand of 1,063.9t was 16% higher than the previous H1 high from 2009. Investment was the largest component of gold demand for two consecutive quarters (Q1 and Q2) – the first time this has ever happened.

Total supply increased by 10% year-on-year in Q2, to 1,144.6t vs. 1,041.7t in Q2 2015. First half supply is just 1% higher year-on-year, the slowest rate of H1 growth for 8 years. The main contributors to this growth have been recycling and hedging, both of which have been supported by higher gold prices.