Chat with us, powered by LiveChat

Global Gold Demand Is At A Record High

Derek Wolfe

Updated: November 3, 2022

global gold demand
Editor’s Note:

EDITOR'S NOTE: According to the World Gold Council, global gold demand is soaring as central banks scooped up a record 399 tonnes of gold—worth an astounding $20 billion—in the third quarter of this year. Aside from central banks, gold demand was strong among jewelers, coin collectors, and investors purchasing bullion bars. Read on for a more detailed breakdown of who's buying, where they’re from, and the products being sold. As a reminder, now seems like an ideal time to purchase the yellow metal as prices remain depressed and buyers worldwide are beginning to sense a potential price floor.

LONDON, Nov 1 (Reuters) - Central banks bought a record 399 tonnes of gold worth around $20 billion in the third quarter of 2022, helping to lift global demand for the metal, the World Gold Council (WGC) said on Tuesday.

Demand for gold was also strong from jewellers and buyers of gold bars and coins, the WGC said in its latest quarterly report, but exchange traded funds (ETFs) storing bullion for investors shrank.

Gold is typically seen as a safe asset for times of uncertainty or turmoil, but many financial investors sold shares in gold-backed ETFs as interest rates rose and pushed up returns on other assets.

Offloading of bullion by ETFs helped push gold prices down 8% in the third quarter, but this price fall helped stimulate demand for jewellery, the WGC said.

In total, the world's gold demand amounted to 1,181 tonnes in July-September, up 28% from 922 in the same period in 2021, the WGC said.

Demand in the year to September had recovered to pre-pandemic levels, it said.

Charting global demand for gold for the first nine months of every year since 2010.
Charting global demand for gold for the first nine months of every year since 2010. (Source: Reuters)

Buying by central banks in the third quarter far exceeded the previous quarterly record in data stretching back to 2000 and took their purchases for the year to September to 673 tonnes, more than the total purchases in any full year since 1967, according to the WGC.

Among large buyers were the central banks of Turkey, Uzbekistan, Qatar and India, but the WGC said a substantial amount of gold was also bought by central banks that did not publicly report their purchases.

It did not give any details on which countries these could be, but banks that do not regularly publish information about their gold stockpiles include those of China and Russia.

Purchases of gold bars and coins also surged in Turkey to 46.8 tonnes in the quarter, up more than 300% year-on-year, as people bought gold to shield themselves from rampant inflation.

"Looking ahead, we anticipate central bank buying and retail investment to remain strong," said WGC analyst Louise Street.

"We also expect to see jewellery demand continue to perform strongly in some regions such as India and Southeast Asia," she said.

Following are numbers and comparisons.

GOLD DEMAND (tonnes)*

 
Q3 2022
Q3 2021
% change
SUPPLY
 
 
 
Mine production
949.4
927.7
2%
Net producer hedging
-10.0
-12.4
-19%
Recycled gold
275.8
292.8
-6%
Total supply
1,215.2
1,208.2
1%
 
 
 
 
DEMAND
 
 
Jewellery fabrication
581.7
515.1
13%
Technology
76.7
83.4
-8%
- of which electronics
62.8
69.0
-9%
- other Industrial
11.3
11.6
-2%
- dentistry
2.5
2.8
-11%
Investment
123.8
232.8
-47%
- Of which bar and coin
351.1
258.9
36%
- - Of which bars
220.4
177.5
24%
- - official Coins
100.2
57.5
74%
- - medals/imitation coins
30.6
23.9
28%
- ETFs & similar products
-227.3
-26.0
773%
Central banks & other inst.
399.3
90.6
341%
GOLD DEMAND
1,181.5
921.9
28%
 
 
 
 
OTC and other
33.8
286.3
-88%
TOTAL DEMAND
1,215.2
1,208.2
1%

Source: World Gold Council, Gold Demand Trends Q3 2022

Reporting by Peter Hobson Editing by Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

Originally published on Reuters.

No Investment Advice

GSI Exchange is a publisher and precious metals retailer. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Content on the Site is provided for information purposes only, and none of the information contained on the Site constitutes an offer, solicitation or recommendation to buy or sell a security. You understand that the GSI Exchange receives neither monetary or securities compensation for our services. GSI stands to benefit from the sell of retail cost precious metals on this site. To avoid hidden costs all prices are listed live 24/7 on this site. Read the full disclaimer

GSI Exchange Infokit - evergreen

GET YOUR FREE

GOLD SILVER INFO KIT

Precious Metals and Currency Data Powered by nFusion Solutions