The global gold demand in 2013, declined by 15% to 3,756 tonne compared to 2012, mainly due to large-scale outflows from electronic traded funds (ETFs) to the equity markets, according to the World Gold Council report.
In 2012, the global gold demand stood at 4,415.8 tonnes, the WGC 'Gold Demand Trends 2013' report said.
There was a net outflow from ETFs of 180 tonne in Q4 as investors continued to re-evaluate their portfolios in response to market conditions.
Overall, investors redeemed 881 tonne from ETFs in the full year, the report said.
However, the gold market saw 21% growth in demand from consumers, the report said.
"2013 has been a strong year for gold demand across sectors and geographies, with the exception of western ETF markets. Specifically, it was the year of the consumer. Although demand has continued its shift from west to east, the growing demand for gold bars, coins and jewellery is a global phenomenon," WGC managing director, Investment Strategy, Marcus Grubb said in a release issued in Mumbai.
Jewellery demand for the year rose 17% to 2,209 tonnes, while investment in bars and coins was up 28% to 1,654 tonnes.
China and India both recorded increased demand in 2013, while consumer demand in China rose 32% to a record level of 1,066 tonnes, in India demand rose 13% to 975 tonnes.
The report further said, across the world there was huge rise in consumer appetite for gold in both emerging and developed markets.
Demand in Turkey was up 60%, Thailand up 73% and the US up 18%.
The sustained environment of lower prices, coupled with improving consumer sentiment and the onset of the main Q4 buying season resulted in a pick up across a number of western markets, the report said.
The annual imports of gold jewellery into the US increased for the first time since 2005, with significant volume increases in imports from India, China and Italy.
The report further revealed that Central banks continued to be strong buyers of gold and saw net purchases in all four quarters totalling to 369 tonne in 2013, even as it was down by 32% from 2012.
The total supply for the year declined by 2% to 4,340 tonnes compared to 2012.