Demand for gold is soaring among investors, but hard-up consumers are shunning gold jewellery, figures from the World Gold Council show.
Total demand for gold hit 1,016 tonnes in the first three months of 2009, up 38% from a year ago. Demand for gold as an investment rose 248% to 596 tonnes.
Gold is often seen as a safer investment in times of turmoil, and a way to guard against future inflation.
But demand for gold jewellery fell 24%, the council said.
It added that consumer spending on non-essential items such as jewellery had been hit hard by the recession.
However, Chinese demand for gold jewellery increased by 3%.
“This reinforces the view that China’s economy, although unquestionably suffering from a sharp deceleration, nonetheless remains resilient,” the council said.
Industrial demand for gold, which is used in the production of electronics like laptops and mobile phones, fell by 31% from the first quarter of 2008.
The gold price has risen from about $700 an ounce in November last year to above $900 an ounce.
