Colossal central bank purchases, aided by vigorous retail investor buying and slower ETF outflows, lifted annual demand to an 11-year high. Annual gold demand (excluding OTC) jumped 18% to 4,741t, almost on a par with 2011 – a time of exceptional investment demand. The strong full-year total was aided by record Q4 demand of 1,337t.

Physically-backed gold ETFs saw their holdings fall by 110t in 2022, down 3% y-o-y and equivalent to outflows of US$3bn. This reflects an interesting year for gold ETFs, in which demand surged during the first four months – as geopolitical risk took centre-stage – before steadily giving back these gains as aggressive rate hikes dominated the narrative. At the end of 2022, global gold ETF holdings stood at 3,473t (US$203bn), 11% off the all-time month-end tonnage high of 3,919t in October 2020.

India, the world’s second-largest consumer of gold jewellery, has experienced rapid change over the last few years due to evolving demographics.  Weddings and festivals remain the most important drivers of Indian gold jewellery demand: bridal jewellery alone accounts for at least half of the market share.