Gold Demand Surge in 2021 Driven by Strong Q4

SEATTLE (Scrap Monster): The World Gold Council (WGC) Gold Demand Trends Report 2021 indicates that gold demand in 2021 bounced back from Covid-19-induced losses in 2020. The strong Q4 gold demand lifted the full year demand by almost 10%, making it to touch highest levels in nearly 2 years.

According to WGC, the full year gold demand in 2021 stood at 4,021 tonnes. The demand from consumer-driven jewellery and technology sectors recovered throughout the year. The jewellery consumer demand surged higher by 52% during the previous year to total 2,124 tonnes. This was mainly driven by the strong demand of 713 tonnes seen in Q4 2021.

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The gold bar and coin demand surged higher by 31% over the previous year to hit 1,180 tonnes, which itself is the highest level in almost eight years. The Q4 investment demand totalled 318 tonnes.

Meantime, the world central banks accumulated 463 tonnes of gold during the previous year, thus lifting the total global central bank reserves to the highest level in almost three decades. Also, the gold used in technology surged higher by 9%, said the WGC report.

The only notable exception was gold ETFs, which recorded net annual outflows in 2021. The global holdings in gold-backed ETFs have declined by 173 tonnes in 2021. This compares with net inflows of 874 tonnes in 2020.