Demand for US investment gold to highest level since 2011

Demand for investment gold in the United States last year reached its highest level since 2011. Americans bought $3.8 billion worth of money because of the corona crisis Gold Coins and gold bars. This year, too, the precious metal is in short supply, as the American mint sold 220,000 troy ounces of investment coins in January. That was the highest volume in a month since December 2009 and the best January of this century. February's figures are also promising, as halfway through the month the counter was already at 118,500 troy ounces.

According to the World Gold Council there were four different reasons for the flight to gold last year. In addition to economic uncertainty, there was also low interest rates, positive momentum in the gold price and an increase in savings in search of yield. Research by the World Gold Council shows that most people buy gold to protect their wealth or to earn returns. Few people buy the precious metal as a short-term speculative investment. This applies not only to coins and bars, but also to investment instruments such as ETFs and Gold in combination with storage.

Demand for investment gold in the US at highest level since 2011 (Source: World Gold Council)

Why do people buy gold? (Source: World Gold Council)

What will the gold market bring in 2021?

Due to the expected upturn in the global economy expected the World Gold Council will not repeat 2020 this year, but despite this, the organization remains positive about the precious metal. Not only because of the monetary policy of central banks, but also because of the recovery of the gold market in China and India. Last year, demand in these countries almost completely dried up, as many people had to sell their precious metal to make ends meet. As these economies continue to open up, interest in gold jewelry will increase. This could give the gold price a new stimulus.

This contribution was made from Geotrendlines