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By Peter Hobson
LONDON (Reuters) – Global demand for gold rose 10% last year, but remained low below the COVID-19 pandemic amid slow investor demand, the World Gold Council (WGC) said in a report on Friday.
The rise in jewelry purchases at the end of 2021 pushed demand to its highest level in the fourth quarter from April to June 2019, the WGC said.
Central bank buying of gold revived last year and purchases of small bars and coins were the largest since 2013, but investors traded more bullion in bullion-denominated funds than they bought, weakening overall demand.
The total demand for gold in 2021 was 4,021 tonnes, more than 3,659 tonnes in 2020, but well below the average of around 4,440 tonnes in the 2010s.
In 2020, the pandemic caused a collapse in jewelry sales, but it led to storage by investors looking for a safe place to store their wealth. This was reversed as economic growth revived, boosting consumer spending and weakening investor appetite.
(Chart: Global Gold Demand, https://fingfx.thomsonreuters.com/gfx/ce/lbvgnwnwjpq/WGC%20GDT%20Q4%202021.JPG)
Gold has fallen from a record high of more than $ 2,000 an ounce by 2020 on the verge of investing around $ 1,800, and most analysts expect lower prices.
“Investments (in gold) may be struggling with competing forces in 2022,” the WGC said, pointing to rising interest rates on rising assets such as gold-plated bonds and high inflation, which could boost bullion demand as a hedge for inflation. .
The WGC said it would maintain strong demand for jewelery, small bars and coins in 2022 and that central banks would “continue to buy gold but at a slower pace than in 2021”.
In 2021, jewelry manufacturing rose 67% from 2020 to 2,221 tonnes, the highest since 2018, the WGC said. Demand for the fourth quarter, 713 tonnes, was the strongest since the second quarter of 2013.
Purchases of bars and coins preferred by small investors rose 31% last year to an eight-year high of 1,180 tonnes.
Central banks bought 463 tonnes of gold in 2021, more than 255 tonnes in 2020 but less than 600 tonnes bought in 2018 and 2019.
Exchange-traded funds fell 173 tonnes in 2021 after accumulating a record 874 tonnes in 2020.
Below are the numbers and comparisons.
ANNUAL REQUEST (T) *
2021 2020% change
Jewelery 2,220.9 1,327.4% 67
– Jewelery consumption 2,123.6% 1,401.1% 52
– Jewelery inventory 97.3 -73.7% – 232%
Technology 330.2 302.8% 9
– Electronics 272.0 249.3% 9
– Other industries 46.8 41.6 12%
– Dentistry 11.4 11.9 – 4%
Investment 1,007.1 1,773.6 – 43%
– Bar and coin 1,180.4 899.6% 31
– ETFs and similar products -173.3 874.0 – 120%
Central banks and other institutions 463.1 255.0% 82
TOTAL ORDER 4,021.3 3,658.8% 10
QUARTERLY GOLD ORDER (T) *
Q4 2021 Q3 Q4 ama yoy
2021 2020%%
change change
Jewelery 713.0 514.2 485.2% 39% 47
– Jewelery 712.7 472.2 510.2 51% 40
consumption
– Jewelry inventory 0.3 42.0 -25.1 – 99% – 101%
Technology 85.9 83.4 84.0 3% 2
– Electronics 70.6 69.0 69.2% 2% 2
– Other industries 12.5 11.6 11.8 8% 6
– Dentistry 2.7 2.8 2.9 -% -4% -7
Investment 300.2 235.0 138.0% 28% 118
– Bar and coin 317.8 261.5 269.2% 22% 18
– ETFs and similar -17.6 -26.5 -131.2 – 34% – 87%
Central banks 47.7 91.4 61.0 – 48% – 22%
TOTAL ORDER 1,146.8 924.1 768.3% 24% 49
* Source: World Gold Council, Gold Demand Trends Q4 2021
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