Gold investments up 132 per cent year-on-year

Global gold demand for investment purposes amounted to 156.8 tonnes in Q3 2023. According to the recently published ‘Gold Demand Trends’ of the World Gold Council, that demand rose to above 364 tonnes in the third quarter of 2024, an increase of 132 per cent. Total demand for gold in Q3 2024 amounted to 1,313 tonnes, a record for a third quarter. The US dollar value of gold demand rose by 35 per cent year-on-year this year due to the development of the gold price, thus breaking through the US$100 billion barrier for the first time.

Higher demand for gold ETFs/ETCs, lower demand for bars and coins

At 95 tonnes, net inflows into gold funds and gold-backed ETCs were important drivers of the strong increase in gold investments in Q3 2024. By comparison, this asset class saw net outflows of 139 tonnes in the same quarter of the previous year. As in previous quarters, the development of inflows and outflows in the individual regions varied greatly.

Demand for gold coins and bars among private investors was, however, slightly down. Around 270 tonnes were purchased in Q3 2024, a decline of 9 per cent compared to the previous-year period. This was likely due to the gold price trend, as demand for gold jewellery, which is not considered a gold investment by the World Gold Council, was also down 12 per cent year-on-year.

Gold production: recycling growing faster than mining

Over the same period, gold supply also reached record levels, with 1,313 tonnes produced in the third quarter of 2024, an increase of 6 per cent. The production of gold through recycling grew significantly faster than mining, increasing by 11 per cent. This is not least due to the high gold price, giving owners of jewellery and gold watches strong motive to part with their old gold. According to the LBMA, gold has appreciated by 28 per cent from Q3 2023 to the same quarter in 2024.