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Gold February 01, 2019 10:30:31 AM

Robust Central Bank Buying Boosts Gold Demand by 4% in 2018

Paul Ploumis
ScrapMonster Author
Gold-related ETFs and similar products reported annual inflows of 68.9 tonnes in 2018.
Robust Central Bank Buying Boosts Gold Demand by 4% in 2018

SEATTLE (Scrap Monster): The World Gold Council (WGC) yesterday announced publication of the Gold Demand Trends Report for Q4 and Full Year 2018. As per the report, the annual gold demand posted growth by 4% over the previous year, aided by several favorable factors including highest gold purchases by central banks in the past five decades.

The annual gold demand totaled 4,345.1 tonnes in 2018, as compared with the demand of 4,159.9 tonnes in 2017. The central banks across the world added 651.5 tonnes to official gold reserves during the year, as part of its diversification drive. This is the highest in over 50 years and is the second highest buying activity on record after 1971.

The WGC report notes that gold mine production, supported by a healthy production pipeline, recorded marginal growth of 1% during the year. The mine production touched a new record high of 3,347 tonnes in 2018.

Gold-related ETFs and similar products reported annual inflows of 68.9 tonnes in 2018. However, this is substantially lower by 67% when compared with the net inflows of 206.4 tonnes reported a year before. However, the fourth quarter of 2018 reported strong ETF inflows of 112.4 tonnes.

The annual gold jewellery demand remained more or less stable at 2,200 tonnes, down by just 1 tonne from 2017. The Indian demand stood flat, whereas the demand plunged in the Middle East region. China, the U.S. and Russia reported rise in demand during the year, said the WGC Gold Demand Trends report.

The coin demand totaled 236 tonnes, surging to its highest level since 2013. Meantime, the demand for gold bars held steady at 781.6 tonnes.

The annual gold supply held firm at 4,490.2 tonnes, with mine production touching a new high of 3,364.9 tonnes.

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