According to the report published by the World Gold Council for the second quarter, the record demand from central banks in the first half of the year was the highest in this century! The data prompts reflection on investment gold. Currently, due to the increasing number of companies competing in the precious metals market, and a comfortable opportunity to buy gold online, physical bullion is effortlessly accessible for all those who want to acquire it. However, keeping in mind primarily safety considerations, as well as economic ones, one needs to know what to watch out for – advice is provided by an expert from Tavex.
Market Reports Historic Demand for Gold
The highest demand for gold from central banks since 2000 (according to the second quarter report, published on July 30, 2024 by the World Gold Council) has aroused curiosity and prompted thoughts about investment gold. No wonder, as the total demand for gold reached a level of over 1258 tons. The WGC asked the banks about the reasons for such actions. The most common arguments from the central banks were: long-term preservation of value, bullion resistance to inflation and crises, no third-party risk, liquidity and its long history as a hedge.
On our domestic market, the situation is not different from the observed world norm. The National Bank of Poland currently has 377 tons of gold, which constitutes 13% of the total reserve assets, while the declaration of directing this share towards 20% remains in force. It is also worth mentioning that the demand for gold generated by central banks in the first half of this year was the highest since 2000, beating even memorable periods for the gold market in the first half of 2022 and 2023.
Gold Reaches Historic Heights
Already in the first half of the year, gold was hitting historic peaks, approaching the price of 2500 USD per ounce. According to data from the World Gold Council, in the second quarter, the total demand for gold increased by 4% compared to the same period last year – says Tomasz Gessner, chief analyst at Tavex. In terms of the structure of investment demand for coins and bars in different parts of the world, Asia still leads. Interest in gold has increased significantly especially in China and India, by 46% and 62% respectively in the second quarter. This situation is causing the demand for the precious metal to also increase in the USA and Europe – he adds.
Source: https://managerplus.pl/swiatowy-popyt-na-zloto-osiaga-historyczne-szczyty-77943
