(London) Global demand for gold hit its highest level since 2011 in 2022, driven by record purchases by central bankers, which more than doubled in a year, according to a report by the World Gold Council (CMO) published on Tuesday.
Gold demand for the full year 2022 came in at 4,740.7 tonnes, up 18% from 2021, propelled by a robust fourth quarter.
“The big surprise of the year was obviously the record demand from central banks, which reached its highest level in 55 years, with the second half of the year alone generating purchases of more than 800 tons,” says the AFP Louise Street, analyst within the organization.
These institutions indeed rushed for gold during the year, with demand having more than doubled in one year, reaching 1135.7 tonnes in 2022 against 450.1 the previous year.
Gold is highly valued by central banks, who use it “as a long-term store of value” in particular, because it does well in times of crisis by serving as a bulwark against inflation, explains the analyst .
Purchases of gold bars and coins held up, continuing to attract investors in several countries, compensating for weak demand from China. In total, investments in bars and coins totaled 1217.1 tonnes in 2022, compared to 1190.9 in 2021.
Lagging behind, the jewelery and technology sectors saw a slight drop in demand, down 2% and 7% respectively over the year (2,189.8 tonnes for jewelery and 308.5 tonnes for technology). .
The slowdown in demand from the technology sector is mainly explained by the persistence of supply chain problems since the COVID-19 pandemic. And the global economic slowdown has weighed on consumer demand.
Regarding gold jewelry, the markets of India and China are capital. Traditionally, families take advantage of weddings and other celebrations to save part of their savings by changing them into ingots, necklaces, rings, bracelets and other gold objects, the ultimate safe haven.
But until December, China applied a very strict health policy, called “zero-COVID-19”, which imposed in particular generalized screening tests, strict monitoring of movements, but also compulsory confinements and quarantines from the start. case finding.
The abandonment of this policy then caused a sharp upsurge in contamination.
Result: the demand for jewelry in China fell by 15%, and investments in bullion and coins by 24%.
