Global demand for gold fell to its lowest mark in 11 yrs in Y 2020 on significant stockpiling by investors and collapsing sales of jewelry.
The China Virus chaos transformed the geography of the gold trade, driving gold from Asia to Europe and the US, where investors are the dominant consumers.
That action drove the value of gold up 25% in Y 2020.
Global demand for gold fell to 3,759.6 tonnes last yr, down 14% from Y 2019 and the 1st yr below 4,000 tonnes since Y 2009, the WGC said in its most recently Quarterly report.
The yr ended with demand over October to December at 783.4 tonnes, down 28% Y-Y and the lowest of any Quarter since 2008, the WGC report said.
Gold is traditionally used as a safe store of wealth, and investors bought 1,773.2 tonnes in Y 2020, up 40% from Y 2019 and the most for any yr on record, that is about $100-B worth of the precious Yellow metal.
ETFs like GLD holding gold for larger investors added a record 877.1 tonnes to their stockpiles, but those inflows reversed late in the yr as money flowed back to assets that benefit from strong US economic growth.
Demand for gold bars and coins bought by smaller retail investors picked up towards the end of the year, lifting annual buying to 896.1 tonnes, up 3% from Y 2019.
Consumption of gold by jewelers, typically the biggest source of demand, dominated by China and India fell to 1,411.6 tonnes as The China Virus lockdowns closed stores and put people out of work, also, the higher prices curbed interest among buyers.
World central banks bought just 273 tonnes of gold in Y 2020, down 59% from Y 2019..
Supply of gold fell 4% to 4,633 tonnes last year as The China Virus chaos disrupted mining activity, the WGC report said.
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