World Gold Council: Central bank gold buying up 470% in 2011
The World Gold Council are out today with an interesting piece of research. They note that global demand for gold in 2011 once again rose, the main driver of this demand being investment demand which increased 5% in 2011.
From the release:
Global demand for gold in 2011 rose to 4,067.1 tonnes (t) worth an estimated US$205.5 billion – the first time that global demand has exceeded US$200billion and the highest tonnage level since 1997, according to the World Gold Council’s Gold Demand Trends. The main driver for this increase was the investment sector where annual demand was 1,640.7t up 5% on the previous record set in 2010 and with a value of US$82.9 billion. The pre- eminent markets for investment demand in 2011 were India, China and Europe.
[emphasis ours]
Also of note was demand in China increased by 20% in 2011. Germany and Switzerland also saw a surge of demand in 2011.
But the really interesting information is on central bank buying of gold – who clearly didn’t want to be outdone by private investors 2011. Back in September 2011 we reported that central bank buying of gold was expected to increase some 336% in 2011.
Well now we have the full-year figure in and central bank buying grew at an astonishing 470% in 2011 – that’s 130% more than was expected just 6 months ago:
Central banks continued the trend established in 2010 of being net buyers of gold. Purchases by central banks soared from 77.0t to 439.7t. This reflects the need to diversify assets, reduce reliance on one or two foreign currencies, rebalance reserves and ultimately protect national wealth.
[emphasis ours]
(Click for sharper image)
Demand for gold bars and coins was also sharply up in 2011 – some 24%:
Demand for gold bars and coins continues to be robust and was another major contributor of the increase in investment demand, which climbed 24% to 1,486.7t.
Read the full World Gold Council release here.
Related posts:
- Central bank gold buying expected to increase 336% in 2011
- Gold supply drops 4% in Q1 because of central bank buying as demand increases 11%
- More central bank buying of gold – this time Korea
- World Gold Council
- World Gold Council Reports Figures
Link to this article: : http://www.goldmadesimplenews.com/gold/world-gold-council-central-bank-gold-buying-up-470-in-2011-6165/
Posted by Thomas Paterson on Feb 16 2012. Filed under Analysis, Gold News, Markets.
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