Feb. 18 - Gold demand fell 15 percent in 2013 as huge outflows from physically backed investment funds outweighed record consumer demand. Ivor Bennett looks at how the gold market is changing and why?
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Rock bottom prices, sky high demand.
2013 was gold's year of the consumer - demand for jewellery, bars and coins soaring by over 20 percent to its highest on record.
But despite the surge in the shops, overall demand still fell by 15 percent.
The huge outflows from exchange traded funds dragging demand down to its lowest in 4 years.
Marcus Grubb from the World Gold Council.
SOUNDBITE (English) MARCUS GRUBB, MANAGING DIRECTOR OF INVESTMENT STRATEGY, WORLD GOLD COUNCIL, SAYING:
"What you'll see now is the market moving back towards an equilibrium. It's pretty much there already. Looking forward, mine production is going to be pretty flat this year. Recycling is probably going to be very weak. Demand looks like it's going to stay strong. So overall you see a market this year where you're probably going to get a positive year for gold."
Prices fell by 28 percent last year - gold's first annual drop in 12 years and its biggest in over three decades.
Fed tapering was one of the main drivers.
But with that now priced in, prices are on the rise, gaining 10 percent since the start of the year.
According to Scotiabank's Sunil Kashyap though, it may be short-lived.
(SOUNDBITE) (English) SCOTIABANK MANAGING DIRECTOR, SUNIL KASHYAP, SAYING:
"I don't think most people expect this rally to continue too much more. The next sort of target is about 1350 at which point you should see some selling coming back. So, right now it's more of a pullback from the lows that we saw last year."
Last year also saw China become the world's biggest gold consumer.
A 29 percent rise in demand for jewellery helping it knock India off the top spot.
But it's not just Asia where demand is strong, it's across the board.
And as the global recovery begins to take hold, it's only expected to increase.