the gold market in the third quarterremained resilient and was boyed bystrong consumer demand figuresparticularly in Asia ETF outflows werelower than in previous quarters whileCentral Bank buying and demand in thetechnology sector remained steady totalGlobal gold demand in Q3 was 869 tonsdown 21% against the same period lastyear year- on-year demand in China grewby 18% to 210 tons this was driven byparticularly strong demand for jewelrywhich grew 29% to 164 tons investmentdemand for gold in China this year hasrisen on the back of subduedperformances by stocks and property thetwo other main investment channels inChina the world gold Council carried outa sentiment survey earlier this yearwhich revealed that 82% of consumers inIndia and China believe that over thenext 5 years the price of gold willincrease or be stable gold demand inIndia fell by 32% to 148 tons howeverthe country posted strong year-to-dategrowth in jewelry and bar and coindemand up 133% and 30% respectively theintervention of the Indian government inrestricting gold Imports is obviouslyreflected in the official levels ofdemand this quarter however this by nomeans indicates that the appetite forgold in India is waning as premiums haveremained very high we have seen bigincreases in demand in other countrieswhich have close links with India someof the gold is making its way to thecountry through elicit channelsyear-to-date demand for jewelry is1,645 tons up 20% versus the same periodlast year aside from the major marketsof China and India we also saw verysignificant growth in jewelry demandthis quarter in the Middle East otherAsian countries and in the United Stateswhich saw its third third consecutivequarter of growth at 35 tons Q3 hasshown an increasing Global Trend towardshigher carrot jewelry people are lookingto combine investment with a desire forluxury and value meanwhile bar and coindemand grew 6% globally compared to thesame period in 2012 year to dat demandfor bars and& coins has grown by aremarkable36% turning to central banks gold demandremained steady at 93 tons with thisperiod being the 11th consecutivequarter in which they have been netpurchases of gold following theuncertainty about QE tapering and thedebt sealing issue in the US centralbanks continue to diversify away fromthe dollar and sovereign debt andrecognize Gold's qualities as a reserveasset meanwhile modest growth in demandwas seen in the technology sectoraccounting for 103 tons in the quarterdriven in part by unrelenting popularityof smartphones andtablets there was a Slowdown in outflowsfrom goldback ETFs this quarter 119 tonsexited compared to 402 tons last quartersince the failure of Leman Brothers in2008 gold has acted as a store of valueand hedge against risk for investorsconcerned about the health of thefinancial system many of those investorshave now exited long-term holders ofgold remain invested in ETFs for thediversification and risk- hedgingbenefits of gold in theirportfolios now looking at Supply it wasdown 3% this quarter at1,146 tons although increases in mineproduction were recorded in China theDominican Republic Brazil andAustralia 385 tons of gold were recycledthis quarter an 11% drop versus the sameperiod last year however because ofdomestic issues recycling in Indiaincreased 5-fold to 61tons globally as economic indicatorsimprove and the gold price remains belowits previous Peaks there is lessincentive to recycle gold the figuresfor Q3 reinforce Gold's Contin strengthdiversity and enduring appeal theysuggest that in what has been achallenging year the market is returningtobalance