JOHANNESBURG (miningweekly.com) – Both gold demand and supply were down in the three months to September 30, the World Gold Council said on Thursday.

The council’s latest gold demand trends report stated that third-quarter (Q3) gold demand had declined by 2% to 929 t and supply had fallen by 7% to 1 048 t on recycling’s lowest contribution in seven years.

Mine production edged 1% higher, however, to exceed 800 t for only the third time ever.

World Gold Council market intelligence head Alistair Hewitt reported a 4% lower jewellery demand at 534 t and said investment in gold bars and coins had fallen by 21% to 246 t, reflecting a return to normality after last year’s unprecedented surge.

Central banks bought 9% less gold at 93 t and substitution again eroded the use of gold in technology, where demand fell by 5% to 98 t.

Indian jewellery demand’s seemingly huge 60% increase to 182.9 t needed to be viewed against India’s decidedly weak Q3 performance of 2013, which was complicated by government measures that curbed gold imports and which contrasts sharply with the current economic optimism under new Indian Prime Minister Narendra Modi.

While US jewellery demand grew 4% to 34 t and UK jewellery demand had its fifth consecutive quarter of year-on-year growth, China’s jewellery demand fell 39% to 147 t, Middle Eastern demand was 14% weaker at 36 t, Turkey’s 19.2 t was the lowest Q3 on record, and Indonesia saw its Q3 jewellery demand dip below 10 t.

Investment demand also fell in India, Indonesia, Thailand, Japan, the US and Europe, as did gold use in electronics, dental applications and other industrial pursuits.

While the supply of fresh gold swelled on output from mines developed during the bull run of the last decade, 25% less old gold – 250.5 t – was recycled in an industry where jewellery again entrenched itself as the overwhelming component of overall demand.