In this episode, hosts John Reade and Joe Cavatoni from the World Gold Council interview Sakhila Mirza, Deputy Chief Executive and General Counsel at the London Bullion Market Association (LBMA) to learn more about the LBMA’s role in the global gold and precious metals industry.
China’s official gold holdings rose four months in a row, adding another 5t in February. And Chinese gold investors bought gold ETFs at a record pace in the month, pushing both AUM and holdings to unseen levels. However, gold jewellery demand weakness, amid seasonality and the rising gold price, weighed on total wholesale gold demand in the month.
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.
Gold began 2025 with vigour: the LBMA Gold Price PM and the Shanghai Gold Benchmark Price PM both saw their strongest January in years, rising by 8% and 5% respectively.
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.
