In the third quarter of this year, global demand for gold bars and bullion coins amounted to 269 tonnes, marking a 9% decrease compared to the relatively strong third quarter of 2023. However, the average gold price quoted by LBMA set another record during this period, rising by 28% year-on-year to reach 2474 USD per ounce. It’s also worth noting that mining gold around the world is on the rise. According to data from the World Gold Council, the third quarter of this year saw another sequential increase in demand for gold bars and coins in Central and Eastern Europe, although this represents a nearly 19% drop in sales compared to the same period last year. During the same time, the Mint Treasury sold 786 kg of investment gold compared to 675 kg in the comparable period of the previous year, marking a growth of 16%. The company’s board believes that this year will continue to see an increased sale of investment gold.
The global demand for gold bars and bullion coins for the first three quarters of 2024 totaled 859 tonnes, similar to the levels from the same period over the last four years. However, it reached a record in terms of value, which amounted to 63 billion USD. In the third quarter of this year, the average gold price quoted by LBMA set another record at 2474 USD per ounce, marking a 28% year-on-year increase. Demand for gold bars and bullion coins during this time was 269 tonnes, signifying a 9% drop compared to the relatively strong third quarter of 2023. Limited gold purchases in China, Turkey, and Europe were the main factors contributing to the year-on-year slowdown. The biggest decline was recorded in Germany, where demand for physical investment gold decreased by 70% year-on-year.
“In our part of Europe, the sale of investment gold in the third quarter of this year was 19% lower compared to the corresponding period last year. However, it must be admitted that the demand for this metal was higher than in the second quarter of this year. Our company has already sold over 2 tonnes of gold this year compared to 1945 kg from the same period last year, marking an increase of 6.4%. We estimate that the ongoing wars in Ukraine and the Middle East will continue to increase the sale of investment gold in Poland. Small grammage gold products, such as 1-ounce bars or bullion coins, are still the most popular among Poles. These products can be easily sold worldwide or exchanged for other goods, and coins are an official means of payment,” comments Adam Stroniawski, Sales Manager at Mint Treasury.
This year, Mint Treasury generated a cumulative sale of 639.4 million zlotys compared to 539.7 million recorded in the comparable period of last year. The company generated a net profit of 9.8 million zlotys compared to 1.6 million zlotys from the previous year.
According to the World Gold Council, it should be noted that, similar to the previous quarter, Western investors continue to show considerable interest in gold. However, this was offset by increased selling interest when the price reached record levels, resulting in a significantly lower level of net demand. Investments in bars and coins, while fundamentally stable on a quarterly basis, were significantly weaker compared to the third quarter of 2023. Sales declines in China, Turkey, and Europe were the main factors contributing to year-on-year slowdown, neutralizing higher gold demand in India and several smaller markets in Asia.
“It is also worth noting that central banks around the world continue to invest heavily in gold. They purchased over 186 tonnes of this metal in the third quarter of this year, and the National Bank of Poland was once again the largest buyer, adding 42 tonnes to gold reserves,” adds Adam Stroniawski from the Mint Treasury.
As the World Gold Council data shows, from the beginning of the year, central banks have already bought 694 tons of gold products, below the record from 2023, but in line with the same period last year. However, analyzing the last four quarters, net purchases amounting to 909 tonnes of gold are considerably above the long-term average levels. It should be emphasized that total gold sales (including bars, coins, jewelry, industrial products, and ETFs) in Q3 2024 increased by 5% year-on-year to a record 1313 tonnes. Meanwhile, mining production increased by 6%, marking another quarterly record. There was also an 11% year-on-year increase in volumes of gold from the secondary market being recycled.
Source: https://managerplus.pl/wydobycie-zlota-w-kopalniach-coraz-wieksze-w-europie-srodkowej-i-centralnej-popyt-na-zloto-spadl-o-19-82589
