sector dominated by countries such as Egypt and Turkey. While 29% lower than Q1 2021, central banks continue to value gold’s performance during times of uncertainty. Total gold supply increased by 4% year-on-year. This was driven by strong mine production, which hit 856 t. In addition, recycling rose 15% on the previous year, reaching 310 t in response to higher gold prices. Louise Street, senior analyst EMEA at the World Gold Council commented: “The first quarter of 2022 has been a turbulent one, marked by geopolitical crises, supply chain difficulties and surging inflation. These global events and market conditions have solidified gold’s status as a safe haven holding, not just for investors but also for retail consumers thanks to its unique position as a dual-natured asset class. “Given the current market dynamics, investment demand is expected to remain strong as the combi- nation of high inflation and heightened geopolitical tensions will likely fuel demand for gold amongst investors. On the other hand, consumers are fac- ing the global cost of living crisis, meaning many will reconsider how they spend their money. While consumer demand has been recovering from covid- inflicted weakness, continued growth in jewellery demand could be stifled by rising costs and a gen- eral economic slowdown.”
Gold bar and coin demand was 11% above its five-year average.
World Gold Council The World Gold Council is the market development organisation for the gold industry. Its purpose is to stimulate and sustain demand for gold, provide indus- try leadership and be the global authority on the gold market.
May 2022 MODERN MINING 11
Made with FlippingBook flipbook maker