According to Reuter Gold market insight, On January 27 of this year (2022), the World Gold Council (WGC) reported a 10% global increase for gold compared to 2020 at the same period. However, the growth is still below the pre-COVID-19 level. The WGC also reported that the end of 2021 brought a drastic increase in jewellery purchases that contributed to the boost to reach the highest level since April-June 2019. Gold buying by central banks rebounded while purchases of small bars and coins were the highest since 2013, but investors in exchange-traded funds sold more bullion than they bought, weakening overall demand.

ETF Outflows Only Exception in robust Gold Demand Recovery Graph

In 2020, the pandemic caused a collapse in jewellery sales but prompted stockpiling by investors seeking a safe place to store wealth. That reversed as economic growth recovered, boosting consumer spending and weakening investor appetite.

The WGC said, pointing to rising interest rates which lift returns on assets like bonds that compete with gold, and high inflation, which could fuel demand for bullion as an inflation hedge. However, somehow very early in the cycle to predict r anticipate any central bank’s move on actually rising interest rates.
Either way that speculation goes, Gold investment regardless of the price stays a strong safe shelter with the demand for jewellery, small bars and coins to remain strong in 2022. According to WGC central banks will continue buying gold though at a slower pace than in 2021.
In 2021, jewellery manufacturing grew 67% from 2020 to 2,221 tonnes, the most since 2018, Fourth-quarter demand, at 713 tonnes, was the strongest since the second quarter of 2013.
Purchases of bars and coins preferred by small investors rose 31% last year to an eight-year high of 1,180 tonnes.
Central banks bought 463 tonnes of gold in 2021, up from 255 tonnes in 2020 but below the more than 600 tonnes bought in 2018 and 2019.
At Express Gold refining we stay close to each direction prices go as it presents an opportunity for our investors with guidance to reflect their investment road map.