# The Gold Report

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Last modified: 2023-02-03

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By Shayne Heffernan · 2023-02-03
Tags: Shayne Heffernan on Investments, Metals, Gold, Silver, Todays Trade Ideas, Featured
Signed: no (published before platform launch).
Nothing in this article is investment advice.

### Colossal central bank purchases, aided by vigorous retail investor buying and slower ETF outflows, lifted annual demand to an 11-year high  

Annual gold demand (excluding OTC) jumped 18% to 4,741t, almost on a par with 2011 – a time of exceptional investment demand. The strong full-year total was aided by record Q4 demand of 1,337t. 

Jewellery consumption softened a fraction in 2022, down by 3% at 2,086t. Much of the weakness came through in the fourth quarter as the gold price surged. 

Investment demand (excluding OTC) reached 1,107t (+10%) in 2022. [Demand for gold bars and coins grew 2% to 1,217t](https://www.goldheadlines.com/), while holdings of gold ETFs fell by a smaller amount than in 2021 (-110t vs. -189t), which further contributed to total investment growth. Quarterly fluctuations in OTC demand largely netted out over the year. 

A second consecutive quarter of huge central bank demand (417t) took annual buying in the sector to a 55-year high of 1,136t, the majority of which was unreported. 

Demand for gold in technology saw a sharp Q4 drop, resulting in a full-year decline of 7%. Deteriorating global economic conditions hampered demand for consumer electronics. 

Total annual gold supply increased by 2% in 2022, to 4,755t. Mine production inched up to a four-year high of 3,612t. 
 

### 2022 gold demand almost matched the 2011 record

![](https://livetradingnews-media.nyc3.digitaloceanspaces.com/wp/placeholder.svg)

Sources: Metals Focus, Refinitiv GFMS, World Gold Council; [Disclaimer](https://www.gold.org/terms-and-conditions#proprietary-rights)

Data to 31 December 2022.

### Highlights

**2022 saw a record annual average LBMA Gold Price PM of US$1,800/oz. **The gold price closed[ the year with a marginal gain](https://www.gold.org/goldhub/research/gold-market-commentary-december-2022), despite facing notable headwinds from the strong US dollar and rising global interest rates. Although the Q4 average price was slightly weaker both q-o-q and y-o-y, a sharp November rally was followed by continued recovery throughout the closing weeks of the year. 

**Brisk retail investment lifted bar and coin demand to a nine-year high**. Strong growth in Europe, Turkey and the Middle East offset a sharp slowdown in China, where demand was affected throughout the year by COVID-related factors. 

**Indian gold demand remained robust compared with longer-term pre-pandemic levels**. Despite a fairly soft start to the year, Indian consumer demand recovered and only just fell shy of the strong levels of demand seen during 2021. Continued recovery from COVID-19 boosted yearly comparisons, although the sharp local price rally choked off demand in the closing weeks of December.  

**Total gold supply halted two years of successive declines in 2022, lifted by modest gains in all segments**. Full-year mine production grew 1% but failed to match its 2018 peak. Annual recycling supply made only marginal gains, despite strong local currency price rises in many markets.

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