Gold’s Rout Spurs Surge in Indonesian Demand: Southeast Asia

That’s a 30 percent increase from 30.8 tons in 2012, and the most since 41 tons in 2009, data from the London-based World Gold Council show.

Gold fell into a bear market in April as haven demand waned and sales from exchange-traded products reached a record, spurring increased buying from India to China, the world’s two biggest consumers. President Susilo Bambang Yudhoyono forecast a jump in per capita incomes this month even as stocks dropped and the rupiah tumbled. Southeast Asia’s largest economy has more than quadrupled in the past 10 years to $878 billion.

“Gold jewelry is all about lifestyle and saving,” Husin said in an interview in Jakarta. “It’s a market driven by the increase in GDP and modern Indonesian women, who are following the trends in fashion and design.”

Bullion for immediate delivery has declined 18 percent to $1,377.50 an ounce this year on concern that the U.S. Federal Reserve will taper stimulus as the world’s largest economy strengthens. The precious metal, which dropped to a 34-month low in June, has lost 28 percent since reaching a record $1,921.15 in September 2011.

Read More: www.bloomberg.com/news/2013-08-22/gold-s-rout-spurs-surge-in-indonesian-demand-southeast-asia.html