Investor demand for gold coins and bars rose sharply in the third quarter, unlike jewelry, in an uncertain economic context triggered by the Covid-19 pandemic which favors safe-haven stocks, according to the World Gold Council (CMO).
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It reached 222.1 tonnes between July and September 2020, 49% more than the same period last year, according to a quarterly report from the organization released on Thursday.
"
Demand from private investors in gold bars and coins has picked up, and quite strongly,
" CMO spokesman John Mulligan commented to AFP, "
especially in China, Turkey but also in Europe.
"
The risk aversion of this type of investor has been one of the main drivers for these investments in favor of gold, as a safe haven, he said.
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This status of the yellow metal is also at the origin of the levels reached by the prices this quarter, which pulverized on August 8 their all-time high at 2,075.47 dollars an ounce and are still evolving these days around 1,900 dollars.
In the wake of coins and bullion, listed financial securities (ETFs) indexed to the price of gold also attracted significant flows over the quarter, reaching a total of 272.5 tonnes over the period, a marked increase "
Although at a slower pace than in the first half of the year
", qualify the authors of the report.
Falling demand for jewelry
However, this good performance failed to offset the drop in demand for jewelry, which fell to 333.0 tonnes between July and September 2020, or 29% less than last year during the same period.
India, which accounted for nearly a quarter of jewelry demand last year in the third quarter, has seen it melt due to the Covid-19 pandemic which has severely affected the country and resulted in the postponement of many weddings, events conducive to the purchase of gold by families.
China, the cradle of the pandemic, retains its position as the leading jewelry market, but its demand has also slowed, by around 25% year on year.
The two countries "
were mainly responsible for the drop in volume but this weakness was global
", commented the authors of the report, who point the finger at the economic slowdown and the high price of gold, a deterrent for many buyers of gold. jewelry.
Central banks sold gold
Industrial demand also stalled, with a volume decrease of 3% compared to the third quarter of 2019. All market segments taken into account, the total demand for gold decreased by 19% compared to the third quarter of 2019, at 892.3 tons.
Central banks, on the front line since the start of the crisis to defend their currencies, for their part sold more gold than they bought in the third quarter, a first for nearly ten years.
With -12.1 tonnes, the net balance is negative for the first time since the third quarter of 2011.
Two countries are mainly responsible for this result: Turkey and Uzbekistan, which respectively fell by 22.3 and 34.9 tonnes of gold.
Nevertheless, "
central banks have remained net buyers since the start of the year, with demand for the first three quarters reaching 220.6 tonnes,
" the study said.
On the supply side, the Covid-19 pandemic has also affected mining, down 3%, which has not been exempt from a decline in activity or even occasional closures in some producing countries.
The sustained prices however encouraged the gold recycling industry, up 6%.