Brandon Sauerwein, Editor
Let’s dive into what made 2024 truly exceptional for gold investors. The World Gold Council’s latest report reveals some remarkable trends:
Investment Demand Soars
Investment demand hit a four-year high in 2024, driving gold to an impressive 26% annual return. Investors poured $90 billion into gold, with total investment reaching 1,180 tonnes. This surge was particularly notable in the second half of the year, as U.S.-listed ETFs attracted significant inflows. While European and American bar and coin demand softened, strong buying in India and China kept overall physical investment stable.
Central Banks Appetite for Gold Grows
Perhaps the most striking story of 2024 was central banks’ continued appetite for gold. For the third consecutive year, central bank purchases exceeded 1,000 tons – a remarkable achievement that’s transformed the gold market. Some key highlights:
- Net purchases reached 1,045 tons in 2024
- The National Bank of Poland led with 90 tons
- Q4 saw an extraordinary surge with 333 tons of purchases
- This marks 15 straight years of central bank net buying
This buying spree isn’t just impressive – it’s driving the gold market higher. The annual average between 2010-2021 was 473 tons, making recent years’ purchases more than double the historical norm.
Looking Ahead: 2025 Forecast
The World Gold Council’s outlook for 2025 remains bullish, with several key drivers:
- Central banks expected to maintain their strong buying momentum
- ETF investors likely to increase their positions
- Mining supply projected to remain robust
- Jewelry demand may face continued pressure from high prices
- Recycling could see further growth
What’s particularly encouraging is the broadening base of buyers. While the National Bank of Poland made headlines, emerging market central banks have been consistently adding to their reserves, suggesting this trend has staying power.
These fundamentals point to another potentially strong year for gold, especially given ongoing global economic uncertainty and geopolitical tensions.
Gold & Silver Market Update
- Gold continues its record-breaking streak, surging to $2,877 per ounce on Wednesday morning. This latest rally is fueled by escalating US-China trade tensions driving safe-haven demand, while dealers accelerate bullion shipments to the US ahead of potential tariff implementation. View Gold Prices
- The silver market is also showing some life, climbing to $32.55 per ounce with an impressive 12.8% gain year-to-date. The metal’s significant daily moves higher suggest growing momentum in the precious metals sector. View Silver Prices
Want deeper insights? Dive into our market analysis on the Hard Assets Alliance blog 2024 Year in Review to better understand the key factors precious metals performance.
Bullion Fact of the Week
It is rarer to find a one-ounce nugget of gold than a five-carat diamond. On a volume-for-volume basis, gold nuggets are estimated to be more than 10 times as rare as diamonds.
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