GOLD DEMAND reached a record during 2024, supported by substantial central bank purchases and stronger investment activity.
The World Gold Council’s report released yesterday put total annual demand, including over-the-counter transactions, at approximately 4,974 tonnes.
Combined with record prices, that volume lifted the value of annual demand to approximately US$382 billion.
Central banks purchased an estimated 1,045 tonnes, exceeding 1,000 tonnes for the third consecutive year. Buying strengthened in the final quarter, when purchases reached approximately 333 tonnes.
Investment demand increased 25% year-on-year to 1,180 tonnes, its highest level in four years. Renewed interest in gold-backed exchange-traded funds during the second half contributed to the increase.
Bar and coin demand remained broadly stable at approximately 1,186 tonnes.
However, higher prices weighed on jewellery consumption, which declined 11% to 1,877 tonnes. Chinese demand weakened considerably, while the decline in India was more modest.
The figures show that record overall demand did not mean growth across every sector. Strong official-sector and investment buying coincided with consumers purchasing less jewellery in a higher-price environment.
Disclaimer
This publication is for educational purposes only and does not constitute financial advice. It does not take into account any person’s investment objectives, financial situation or needs. Before making an investment decision, consider whether the information is appropriate to your circumstances and seek advice from a licensed financial adviser where necessary. Past performance is not a reliable indicator of future performance.