Post by account_disabled on Feb 18, 2024 4:45:14 GMT -5
Net purchases in 2023 almost equaled the previous year's record, the World Gold Council said. According to the World Gold Council (WGC), total gold demand reached its highest level on record last year, at 4,899 tonnes, amid global uncertainty and continued massive purchases by central banks. In its report on gold demand trends for the full year 2023, the industry group said central bank purchases remained at a stable level. “a frenetic pace” reaching 1,037 tons, almost equaling the record of 2022. “Even if it [central bank purchases] is not as strong as it was in 2022, it is significantly higher than before 2022 and exceeded our expectations.” said John Reade, market strategist at WGC. “This is a very impressive figure,” he added. Central bank purchases are expected to slow by around 200 tonnes in 2024, but will still be higher than before 2022, according to Reade. The strategist noted, however, that demand for gold among central banks could even accelerate. The WGC report highlights that global gold jewelry consumption remained stable in 2023 (at 2,092 tonnes) due to a 17% increase in demand in post-Covid China and despite high gold prices.
At the same time, purchases of gold bars and coins fell 3% as European demand continued to decline. The report also shows that global gold exchange-traded funds (ETFs) experienced a third consecutive annual outflow in 2023, losing 244 tonnes. According to the WGC, annual mining production increased last year to 3,644 tonnes, but remained below the 2018 record. MORE INFORMATION: Gold will reach new highs in 2024 – Reuters Gold prices hit an America Mobile Number List all-time high of $2,135.4 an ounce in December and have remained above the psychological level of $2,000 so far this year. Experts believe the recovery will continue as continued uncertainty over the outlook for the global economy, following recession fears and rising geopolitical tensions in the Middle East, boosts demand for the safe-haven metal. Do you agree with that perspective? -I care more about what inflation will be in the last 4 months. If in the end, for example, we have 20% in December, 20 in January and 20 in February (because gas and electricity are also adjusted) and then we have 18 in March, there we already accumulate 60% inflation.
If then in the rest of the months we go to an average inflation of 12% or 10, we are at 150%. But if in the last 4 months we have an average annualized inflation of 60%, Argentina starts 2025 with high inflation, but all the adjustments have already been made and within whose levels economies such as Colombia, Chile or Mexico managed to stabilize. I think that is viable, but it is important that at the end of the first quarter and the second we see a monetary policy. In addition, economic authorities need to communicate a little more about what they are doing to guide expectations after this shock. What the exchange rate policy will be will also be key because a movement of 2% of the official dollar will be devoured very quickly by inflation. If they want to continue accumulating reserves, an exchange rate is needed that does not lose competitiveness in three months. -Is it possible to radically cut the fiscal deficit in one year without having a tremendous social impact? -It is very important that social spending items are increasing and schemes are being designed not only to serve and compensate people who were already receiving programs but also the population that is fragile and above the poverty line.
At the same time, purchases of gold bars and coins fell 3% as European demand continued to decline. The report also shows that global gold exchange-traded funds (ETFs) experienced a third consecutive annual outflow in 2023, losing 244 tonnes. According to the WGC, annual mining production increased last year to 3,644 tonnes, but remained below the 2018 record. MORE INFORMATION: Gold will reach new highs in 2024 – Reuters Gold prices hit an America Mobile Number List all-time high of $2,135.4 an ounce in December and have remained above the psychological level of $2,000 so far this year. Experts believe the recovery will continue as continued uncertainty over the outlook for the global economy, following recession fears and rising geopolitical tensions in the Middle East, boosts demand for the safe-haven metal. Do you agree with that perspective? -I care more about what inflation will be in the last 4 months. If in the end, for example, we have 20% in December, 20 in January and 20 in February (because gas and electricity are also adjusted) and then we have 18 in March, there we already accumulate 60% inflation.
If then in the rest of the months we go to an average inflation of 12% or 10, we are at 150%. But if in the last 4 months we have an average annualized inflation of 60%, Argentina starts 2025 with high inflation, but all the adjustments have already been made and within whose levels economies such as Colombia, Chile or Mexico managed to stabilize. I think that is viable, but it is important that at the end of the first quarter and the second we see a monetary policy. In addition, economic authorities need to communicate a little more about what they are doing to guide expectations after this shock. What the exchange rate policy will be will also be key because a movement of 2% of the official dollar will be devoured very quickly by inflation. If they want to continue accumulating reserves, an exchange rate is needed that does not lose competitiveness in three months. -Is it possible to radically cut the fiscal deficit in one year without having a tremendous social impact? -It is very important that social spending items are increasing and schemes are being designed not only to serve and compensate people who were already receiving programs but also the population that is fragile and above the poverty line.