Gold demand fell 16 percent in the second quarter of 2014 from the same period the year before, according to the World Gold Council. In addition, gold prices dropped 9 percent, reports the WGC, with the London PM fix at $1,288 per ounce in the second quarter, down from $1,415 per ounce in the second quarter of 2013.

The culprit was a drop in demand attributed to lowered interest from the jewelry industry (generally the largest segment of demand, and representing 53 percent of gold demand). Additionally, gold supply increased by 10 percent, and mining production was up 4 percent year-over-year in the second quarter.

Central banks continued to be a strong source of demand in the second quarter, representing 12 percent of the market, with a 28 percent increase in demand year-over-year.