Global demand for gold coins and bars at its highest since 2016

The latest World Gold Council report explains that in the first quarter, global gold demand is broadly normalising, with less investment demand and more jewellery and industrial demand. One overall pattern stands out: since the fourth quarter of 2016, demand from private individuals for gold bars and coins has been at its highest. In China, sales of bars and coins reached 86 tonnes in the first quarter, an increase of 133% in a year and of more than 20% compared with 2019 levels. For India, it is the best start to a year since 2015. In Turkey, demand has doubled in a year against a background of political and economic uncertainty. In the United States, the 26 tonnes bought are twice the average of the last five years. Sales of the American Eagle by the US Mint thus reached their highest level since 2010 in the first quarter. The explanation looks straightforward: with the economic and health situation still uncertain, private buyers took advantage of the fall in the gold price to buy.