The World Gold Council’s latest Gold Demand Trends report reveals that annual gold demand (excluding OTC) in 2022 increased by 18% year-on-year, hitting 4,741t, the highest annual total since 2011. Boost by a record fourth quarter, demand for gold was propell by hefty central bank-buying and persistently strong retail investment.
Annual central bank demand more than double to 1,136t in 2022, up from 450t the year before and to a new 55-year record high.
Purchases in Q4 2022 alone reach 417t, bringing the total for the second half of 2022 to more than 800t.
Investment demand (excluding OTC) in 2022 was up 10% on the previous year.
The increase was the result of two factors: a notable slowdown in ETF outflows and strong gold bar and coin demand.
Gold bars and coins continue to hold favour with investors in many countries around the world, which help to offset weakness in China.
Total European gold bar and coin investment for 2022 surpass 300t, aid by persistently robust German demand.
There was also significant growth in the Middle East, where annual demand increased by 42% year-on-year.
Jewellery demand soften slightly in 2022, down 3% at 2,086t.
This weakness was largely driven by the mark drop in Chinese annual jewellery demand, down 15% as consumer activity was curtail by ongoing COVID-19 lockdowns for most of the year.
The gold price rally in Q4 also contribute to the annual decline in jewellery demand.
Total annual supply in 2022 continue its gentle upwards trajectory, up by 2% y-o-y to 4,755t and remaining above pre-pandemic levels.
In particular, mine production increase to 3,612t, a four year high.
Louise Street, Senior Markets Analyst from the World Gold Council, Said :
The Gold Demand Trends Q4 and FY 2022 report, which includes comprehensive data provide by Metals Focus, can be view here
The World Gold Council is celebrating 30 years of Gold Demand Trends.