Ongoing financial crisis directly impacted the global gold market in the third quarter of 2007, with investors rather than jewelry buyers pushing total demand to a new record of $20.7 billion, up 30 percent over the same period last year, according to Gold Demand Trends, released today by the World Gold Council (WGC).

The figures, compiled independently for the WGC by GFMS Ltd., showed that global gold jewelry demand was also strong in the third quarter, but was heavily impacted in key markets in September due to steep price hikes. All the same, global gold jewelry demand increased by 6 percent in tonnage terms and by 16 percent in dollar terms over the same period last year.

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