Global Appetite for Gold Hits Historic Peak
This assessment was outlined in a Thursday release issued by the World Gold Council.
"Combined with the record-breaking run in the gold price—setting 53 new all-time highs during the year—this yielded an unprecedented value of $555 billion (+45% year-on-year)," the council said.
Gold investment interest surged sharply over the year, with demand jumping 84% compared to the previous year to a total of 2,175 tons.
Notably, capital flowing into exchange-traded funds (ETFs) climbed to 801 tons, overtaking jewelry consumption for the first time on record. Demand for gold jewelry declined by 18% over the year as soaring prices dampened consumer appetite, while China’s jewelry purchases slid 24%, marking their weakest level since 2009.
Buyers also stepped up acquisitions of physical gold. Worldwide demand for bars and coins advanced 16% to 1,374 tons, with China and India delivering the most significant growth, together representing more than half of the total increase in this segment.
Overall gold supply expanded by 1% during the year, setting a fresh record of 3,672 tons. Recycled gold contributed to this rise, increasing by 3% to 1,404 tons, a response viewed as relatively modest given that gold prices in US dollar terms soared by 67%.
"Technology demand was stable despite disruption in the consumer electronics space, supported by continued growth in AI-related applications," it noted.
Looking ahead, the council stated that persistent geopolitical risks are likely to support another year of strong ETF inflows alongside solid demand for bars and coins, bolstered by sustained buying from central banks.
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