In 2011 the situation was different: physical demand reached a peak. China and India were strong gold buyers. Today supply and demand from the Asian region dominate less, but the environment – negative and falling real interest rates, weak US dollars, uncertainties – are driving the gold price through Western investors. Gold jewelry is currently not in great demand, but the price of gold has increased by more than 34 percent since the beginning of the year. The physically deposited gold ETFs in particular grew strongly.
Gold bars and coins are not in great demand in certain countries
It is investor interest that grows and is responsible for price increases. The World Gold Council published data in this sense in a report. Gold bars and coins have not been as popular in India, the Middle East and China in recent months. Economic uncertainties sparked gold sales, mind you, it’s about physical gold. In contrast, gold was in demand in Turkey, Europe and the USA in the first half of the year. After all, the demand here was around 40 percent higher than in the first half of 2019.
Europe as the main buyer
Europeans in particular, mainly from Germany, Austria, Great Britain and Switzerland, bought up to 137 tons of gold in the first half of the year, the largest sum since the euro crisis. In the USA, around four times as much gold went over the counter in the same period than in the previous year (first half of the year). The interest of institutional investors has increased significantly. Because they too have recognized that gold is ideal as a diversification for portfolios. Two gold stocks with great potential are Tarachi Gold and Skeena Resources.