When considering the factors driving up gold miners’ All-in sustaining costs (AISC), Q3’24 was a busy period. AISC rose to US$1,456/oz (up 4% q/q and 9% y/y), the highest point in our data series back to Q1’10.
Central banks continued their strong interest for gold in January with reported net purchases of 18t. The sustained buying highlights the strategic importance of gold in official reserves, particularly as central banks navigate heightened geopolitical risks.
With our latest Gold Demand Trends report citing that total annual gold investment grew 25% in 2024, many investors are exploring what gold ownership entails and whether their investment should be actively or passively managed.
Traders and speculators often borrow shares of such a gold-backed ETF through standard securities lending relationships, which involve the ETF’s shareholders, and do not involve the London gold lease market, or the trust, itself.
Even with a price moderation in November and December, gold surpasses other key asset classes to lead returns in 2024. Jewellery demand slowed amid high prices and an inauspicious period on the Hindu calendar.
China’s wholesale gold demand sees a seasonal rebound in December yet the 2024 total remains weaker than 2023. Meanwhile, gold ETFs experienced unprecedented inflows in 2024. And China’s official gold holdings have increased two months in a row now, ending the year with reported gold purchases of 44t.
Based on available reported data, central banks bought a net 53t in November. The National Bank of Poland (21t) was the biggest buyer, while the People's Bank of China reported its first addition (5t) since April.
Central banks reported 47t of net purchases this month – the highest amount recorded y-t-d. The Central Bank of Turkey led the field, adding 17t of gold to its reserves, followed by India and Poland – 14t and 8t respectively.
