China News Service, Beijing, January 28 (Reporter Yan Xiaohong) The "Global Gold Demand Trend Report" released by the World Gold Council on the 28th shows that the total global gold demand (excluding over-the-counter transactions) in 2021 will reach 4,021 tons. It has gradually recovered from the impact of the new crown pneumonia epidemic in 2018.
Report data shows that global gold demand in the fourth quarter of 2021 was 1,147 tons, the highest quarterly level since the second quarter of 2019, and an increase of nearly 50% year-on-year.
Global demand for gold bars and coins rose 31% year-on-year to an eight-year high of 1,180 tonnes as retail investors sought safety amid rising inflationary pressures and ongoing economic uncertainty caused by the COVID-19 pandemic, the report said.
In terms of consumer demand, the global gold jewellery consumer demand will recover in 2021, which is basically the same as the total volume of 2,124 tons in 2019 before the epidemic.
This was helped by a strong fourth quarter, when global consumer demand for jewellery reached its highest level since the second quarter of 2013.
Notably, the average gold price in 2021 is 25% higher than in the second quarter of 2013, further underscoring the strong demand in the most recent quarter.
In 2021, demand for technology gold rose by 9% to a three-year high of 330 tonnes.
Although compared with the demand for gold in other fields, the overall scale of gold used in technology is small, but it is widely used, and gold has been widely used in the electronics industry.
Wang Lixin, CEO of the World Gold Council China, said that in 2021, the overall demand for gold in China will show a strong trend, and the demand for gold investment in the Chinese market will also increase significantly.
Gold ETFs (exchange-traded funds) are in stark contrast to the net outflows from Western markets. The net inflow of 14.4 tons throughout the year pushed the total holdings of gold ETFs in China to a record high.
Gold's performance in 2021 does underscore the value of its unique dual attributes and diverse demand drivers, the World Gold Council said.
Jewellery demand has reached its highest level in nearly a decade as key markets such as China and India revive their economies.