Central banks continued to bolster gold reserves in 2017. Total global gold reserves increased by 73.1t in Q4, bringing full-year net purchases to 371.4t (-5% y-o-y). The 38% y-o-y decline in demand in Q4 was entirely driven by Venezuela’s swap deal lapsing. The agreement with Deutsche Bank was valued at US$1.7bn, which represents approximately 45 tonnes of gold.1 The transaction lapsed in October and is accounted for as a sale in our Q4 figures.
Gold Demand Trends Full Year 2017
6 February, 2018
Central Banks and other institutions
Eighth consecutive year of central bank net purchases, marginally down on 2016
- Central bank net purchases totalled 371t in 2017, 5% lower than 2016 demand
- Q4’s 38% y-o-y decline was entirely driven by the lapse of sizeable Venezuelan swap
- Russian gold reserves increased 224t – the third consecutive year of +200t growth
|Central banks & others||389.8||371.4||-5%|
For the compilation of our central bank demand statistics, we have assumed the swap represents 45t.
All country-level data is taken from the IMF's International Financial Statistics (IFS), February 2018 edition.
Excluding commercial bank gold holdings held at the central bank as part of the reserve option mechanism.