{"id":1181685,"date":"2020-04-30T14:24:05","date_gmt":"2020-04-30T19:24:05","guid":{"rendered":"https:\/\/www.mining.com\/?p=1022308"},"modified":"2020-04-30T14:24:05","modified_gmt":"2020-04-30T19:24:05","slug":"gold-investment-demand-surges-80-in-q1-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1181685","title":{"rendered":"Gold investment demand surges 80% in Q1"},"content":{"rendered":"<p>Massive stockpiling of gold by investors during the covid-19 pandemic kept global demand stable for the first three months of 2020, offsetting marked weakness in consumer-focused sectors of the market, the World Gold Council <a aria-label=\"reported on Thursday (opens in a new tab)\" href=\"https:\/\/www.gold.org\/goldhub\/research\/gold-demand-trends\/gold-demand-trends-q1-2020?utm_source=twitter.com&amp;utm_medium=referral&amp;utm_term=organic&amp;utm_campaign=gdt-q1-2020\"  rel=\"noreferrer noopener\">reported on Thursday<\/a>.<\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>In the first quarter, global demand for the yellow metal inched up 1% year-on-year to 1,083.8 tonnes, in large due to an 80% surge in total investment demand (to 539.6 tonnes) as investors look for safe haven assets to hold over the long term.<\/p>\n<p>Gold-backed ETFs attracted huge inflows with 298 tonnes added, which pushed global holdings to a new record high of 3,185 tonnes, the Council said. Amid the economic uncertainty and financial market volatility, this was the highest quarterly inflow in four years.<\/p>\n<p>These investment inflows helped <a aria-label=\"push gold price (opens in a new tab)\" rel=\"noreferrer noopener\" href=\"https:\/\/www.mining.com\/monetary-madness-lifts-gold-price-to-7-year-high\/\" >push gold price<\/a> to a seven-year high during the quarter. Consequently, global gold demand in value terms reached $55 billion \u2013 the highest since Q2 2013.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/04\/chart.jpeg\" alt=\"\" class=\"wp-image-1022331\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/04\/chart.jpeg 800w, https:\/\/www.mining.com\/wp-content\/uploads\/2020\/04\/chart-300x225.jpeg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2020\/04\/chart-768x576.jpeg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure>\n<\/div>\n<p>However, lockdown measures around the world shuttered the two biggest consumer markets in China and India, causing a 39% decline in jewellery demand to 325.8 tonnes \u2013 the lowest in at least a decade. <\/p>\n<p>\u201cThis is the biggest change to the market that I can remember,\u201d said John Reade, the WGC\u2019s chief market strategist, commenting on the current shift in gold demand trends.<\/p>\n<p>\u201cThere\u2019s a lot of potential for investment demand to be strong,\u201d Reade added. \u201cWhether it turns out to be big enough to compensate &#8230; remains to be seen.\u201d<\/p>\n<p>Bar and coin investment fell 6% to 241.6 tonnes, as a 19% drop in bar demand (to 150.4 tonnes) overpowered a sharp jump in demand for gold coins, up 36% to 76.9 tonnes, as a result of safe-haven buying by Western retail investors.<\/p>\n<p>Technology demand also fell 8% to 73.4 tonnes, the lowest level recorded since WGC began collecting data.<\/p>\n<p>Central banks continued to amass gold, although at a lower rate compared to Q1 2019, and the Council expects net buying to slow sharply. Russia announced that <a aria-label=\"it would suspend (opens in a new tab)\" href=\"https:\/\/www.mining.com\/web\/russia-worlds-biggest-buyer-of-gold-will-stop-purchases\/\"  rel=\"noreferrer noopener\">it would suspend<\/a> long-term buying from April, signalling a sharp slowdown in global net buying.<\/p>\n<p>Total supply of gold decreased to 1,066.2 tonnes, down 4% from 2019, as lockdowns around the world hit mine production and gold recycling, the WGC added.<\/p>\n<p>Spot gold has since traced back below the $1,700\/oz mark, down nearly 2% to $1,686.80 as of 1 p.m. EST Thursday. Gold futures for June delivery dropped 1% to $1,694.90 on the Comex. However, the metal is still on course for its best month in almost a year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold-backed ETFs attracted huge inflows with 298 tonnes added, pushing global holdings to a new record high.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1181685"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1181685"}],"version-history":[{"count":6,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1181685\/revisions"}],"predecessor-version":[{"id":1181716,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1181685\/revisions\/1181716"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1181685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1181685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1181685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}