Global gold demand has declined sharply in the third quarter of 2017 due to declining interest in India, according to a report released today by the World Council on Gold. The demand for precious metal between July and September 2017 shrank by 9% compared to the third quarter of 2016, reaching 915 tonnes or the lowest since the third quarter of 2009.

“India is the main reason for this weak result, with a 25% decline in demand for jewelry compared to an year earlier and a 23% drop in demand for whole gold pieces and bullion”, said the senior representative of the World Council on Gold, John Mulligan.

India is the second largest gold buyer in the world after China, but the local industry has been hampered by a number of measures to fight the black market.

Stock markets have been setting one record high after another this year, so investors have seemingly decided they don’t have much need for gold, often bought as a hedge during downturns. Total investment demand for gold dropped 28% in the third quarter, to 241 metrics tons, compared with a year earlier. Gold-backed ETFs recorded a severe drop in inflows, down 87% from last year.