Our latest Gold Demand Trends report takes a detailed look at the global gold market in the third quarter.
The fact that gold demand so far this year is down 9%, while the average gold price over the same period was 4% higher, exemplifies gold’s diversification benefits, thanks to its varied roles as an investment, consumer good and a reserve asset.1
Gold demand (excluding OTC) for Q3 was 871t, compared with 894t in Q3 2020. That 7% drop was primarily due to ETF outflows, which had a disproportionate impact owing to last year’s record inflows. Bar and coin investment partly compensated, reaching record levels in some markets. Consumer-led sectors saw demand continue their sharp recovery from last year’s weakness, although jewellery has yet to return to pre-COVID levels. And central banks continued to buy at a healthy pace. On the supply side, another sharp y-o-y contraction in recycling supply outweighed a rise in mine production to a record quarterly level.
These broad shifts demonstrate why gold’s performance can benefit from its unique demand structure, as gains in some areas of the market often offset declines in others.