In 2021, consumer demand for gold in Russia increased by 34% to 46.8 tons due to the recovery of the jewelry market. This is stated in the report of the World Gold Council (WGC), published on website organizations on Friday, January 28th.
In the fourth quarter, consumer demand for this precious metal increased by 28% to 13 tons.
The jewelry market grew over the year in physical terms by 39%, to 41.5 tons.
Global demand for gold rose by 10% last year to 4,021 tons.
The demand for gold for the production of jewelry for the year turned out to be 52% more than in 2020 and almost coincided with the data for 2019.
Louise Street, senior analyst for Europe, the Middle East and Africa at WGC, noted that demand for jewelry reached its highest in almost a decade, as key markets, China and India, recovered economic activity.
Retail demand for gold bars and coins increased by 6% in physical terms and now stands at 5.3 tons.
Sales of gold bars and coins in 2021 increased by 31% in the world, to 1180 tons and broke the record eight years ago. The report indicated that retail investors were looking for safe haven amid rising inflation and negative real rates.
“Central banks accumulated 463 tons of gold in 2021, which is 82% more than in 2020,” the report says.
At the same time, there was an outflow of gold from ETFs (exchange traded fund, exchange-traded investment funds backed by gold), which amounted to 173 tons. Because of this, gold reserves accumulated in ETFs decreased by 5% in 2021, to 3570 tons.
WGC predicts that consumer demand will increase in all sectors related to gold in 2022, and investment demand will face problems due to rising reserve rates. The fund added that gold production will grow at the same pace against the backdrop of a fall in recycling.
In December last year, it was reported that against the backdrop of rising inflation and a pandemic, the population of Russia bought the maximum amount of bars and coins since 2014. In the first nine months of 2021, demand was 4 tons, 8% more than in the same period last year.
Director of Public Policy and Interaction with Central Banks of the World Gold Council Tatyana Fitz told Izvestia that investors often use this protective asset to save money during social and economic crises, as well as to reduce the risks of inflation and currency fluctuations.
Interest in physical gold also rose that year in the US by 79%, in China by 54% and in India by 24%. In Russia, demand is curbed by a 20% VAT tax on gold bars.
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