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Global gold demand in the first quarter of 2024 was 1,238 tonnes, up 3%

July 22, 2024

The global gold demand including extra-bur acquisitions (OTC) is of 1,238 tons for the first quarter of this year, up by 3% year in, year out according to the most recent data of the World Gold Council, quoted in an analysis made by a metal precious dealer.It has been the strongest first quarter for global yellow metal demand since 2016 to the present and the main factor is represented by the acquisitions of gold consumers, investments under the form of bullion and coins, which has increased by 3%, shows Tavex Romania. At the same time, the acquisitions of central banks increased by 1%.The price of gold has seen an impressive rise since the beginning of the year, from around $2,020 per ounce in February to almost $2,430 on 21 May. Since then, the price has gone through a correction, but has stabilised around $2,300 per troy ounce in the last month. "The reasons for this significant increase in recent months are logically to be found in the global dynamics of demand for gold for investment, both at the institutional level, from central banks to accumulate reserves, and at the consumer level, from individuals to save," Victor Dima, manager of the Treasury Department of Tavex Romania, said in the statement. The gold reserves of the National Bank of Romania are 103.6 tons, which places our country the 39th in the world. Out of the countries in the former communist bloc in Eastern Europe, Romania has the second largest gold reserve after Poland.   ”When we compare the gold reserves of Romania, we have to adjust the values depending on the number of the population. Per inhabitant capita, Romania has approximately 5.45 gold grams. Poland, in exchange, has 9.75 gold grams. So, even if the net gold reserves of Poland are almost twice and a half higher than Romania’s, per inhabitant capita, the difference is 1.8 times. The last change in the gold reserves of Romania happened in October 2007 when BNR sold one ton of gold’, added Victor Dima.   According to the quoted source, the Gold World Council does not have specific data regarding the gold demand on the part of the consumers in Romania. The country is part of the category “other European countries” which excludes the main gold markets such France, Germany, Italy, the UK, Switzerland and Austria. In this category which includes Romania, the general demand of the gold investment consumers is only 24.3 tons in 2023, dropping significantly from 41.9 tons in 2022. In general, although the specific data are missing, the consumption market for investment gold in Romania is at the beginning.The central bank of Poland occupies the second place as regards gold acquisitions in 2023, after China and before India. Thus, it is the central bank with the most consistent gold acquisitions in Europe. At the end of last year, the gold reserves were 130 tons higher than at the end of 2022 getting to 359 tons, the equivalent of a growth of 56.9%. Their share in the total of central banks reserves is 12%.According to the analysis, India, China and Turkey have been the main buyers of gold among central banks in recent years. The People's Bank of China increased its gold reserves by 27.06 tonnes in Q1 2024, reaching a total of 2,262.4 tonnes at the end of the quarter. In 2023, China's gold reserves increased by 11.2%, while a year ago the increase was much lower at 3.2%. Thus, 2023 marks the largest increase in China's gold reserves since at least 1977 (the earliest year for which data are available). Data for the first quarter of 2024 show that the upward trend in China's gold reserves continues. Currently, China is the sixth-largest nation in the world in terms of gold reserves held.   In terms of consumer demand for gold for investment, China (excluding Hong Kong) ranks first. In Q1 2024, China's consumer gold purchases reached 308.8 tonnes, up from 245.9 tonnes in the previous quarter. However, the first place is occupied by Turkey, whose central bank increased its reserves by 30.12 tonnes to 570.3 tonnes.   This is the third consecutive quarterly increase in Turkey's gold reserves. In 2023, the dynamics of the country's gold reserves are mixed. After a significant drop in the second quarter by almost 130 tonnes, Turkey started buying, and now its gold reserves have returned to almost the same level as at the beginning of last year.   In terms of private purchases, Turkey ranked third, with 55.7 tonnes of purchases in Q1 2024, compared to 40.5 tonnes in Q4 2023. India was the third largest contributor to the increase in gold reserves in Q1 2024, with an 18.5 tonne advance to a total of 822.1 tonnes. This is the largest increase in India's gold reserves in a single quarter since Q3 2021. India ranked second, with 136.6 tonnes of private purchases in Q1 2024, up slightly from Q1 2023, when consumer demand reached 126.3 tonnes.   Tavex opened its doors in Romania in 2019 and already has three offices in Bucharest and one in Cluj. Tavex offers high-quality investment products in physical gold, silver and foreign exchange. The company specialises in offering investment gold, including gold coins and gold bullion, as well as investment silver, while having attractive exchange terms for over 55 types of coins.  

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