Research by the World Gold Council (WGC) shows retail gold investors regained their appetite for official coins in 2018. While demand for gold bars remained stable at 781.6 tonnes for the year, annual coin demand surged 26% to 236 tonnes, its highest since 2013.
The WGC said demand was boosted by the fall in gold prices across most currencies and heightened equity market volatility during the second half of the year, with buyers from Iran and South Africa notably active in the market.
Gold-backed exchange traded funds (ETFs) experienced strong inflows in Q4 in an otherwise lacklustre performance. Annually, inflows reached 69 tonnes, 67% lower than in 2017. Nevertheless, the total value of all gold ETF holdings finished the year above $100 billion for the first time since 2012, the WGC said.
Total global demand gained 4% to 4,345.1 tonnes on the back of soaring gold purchases by central banks, it reported. Up 74% on 2017 at 651.5 tonnes, net purchases reached their highest level since 1971 with Russia, Turkey and Kazakhstan leading a growing number of central banks buying gold.
Annual jewellery demand was virtually unmoved with consumption down just 1 tonne from 2017.
For the full picture, read the World Gold Council’s
Gold Demand Trends Full Year & Q4 2018.
