Gold Price | Last year saw a storm of gold buying, broke the 11-year record, know what is the reason
The total demand for gold last year was 4,741 tonnes. This is the highest demand since 2011. This means that the gold purchase record of last 11 years was broken last year.
New Delhi: Last year gold price was around 50 thousand rupees per 10 grams. But still people bought gold. According to the World Gold Council’s new Gold Demand Trends Report, the annual demand for gold (excluding OTC) is expected to grow by 18 percent annually in 2022. The total demand for gold last year was 4,741 tonnes. This is the highest demand since 2011. This means that the gold buying record of last 11 years was broken last year.
Buying expensive gold too
In the fourth quarter of last year, the price of gold was increasing steadily, but still the demand for gold was also increasing. At that time, the central banks bought a lot, focusing on buying gold. A lot was invested in gold.
Central banks’ gold purchases hit 55-year high
Gold purchases by central banks doubled in 2022. A year ago, central banks bought 450 tonnes of gold, which will increase to 1,136 tonnes in 2022. This is the highest level of gold buying in 55 years. According to the information received, 417 tonnes of gold was purchased in the fourth quarter of 2022 alone. Also, 800 tonnes were purchased in the second half of 2022.
Investment demand increased
Last year i.e. in 2022 the investment demand for gold increased by 10 percent compared to last few years. There are two reasons for this. First is the slowdown in ETF outflows and second is the high demand for gold coins and gold bars during this period. According to the World Gold Council, demand for gold bars and coins among investors in many countries around the world has increased. This made it easier to face the downturn in the Chinese market. Investment in gold bars and coins in Europe has crossed the 300 tonne mark in 2022. The main reason was the increasing demand in Germany. Gold demand in West Asia also grew by 42 percent on an annual average basis.
Low demand for jewellery
Jewelery demand to decline in 2022. It was 2,086 tons. The main reason for this is said to be the decline in demand for jewelery in China. This demand decreased by about 15 percent.
During the same period, annual gold supply increased by 2 percent to 4,755 tonnes. Apart from this, production in gold mines increased to 3,621 tonnes. This was the highest production in the last four years.