WGC – Gold Demand Trends, 3Q 2023

In the third quarter of 2023, the demand for gold remained above the long-term average. Central banks continued to buy gold at a historic pace, although it fell short of the record set in the third quarter of 2022. Jewelry demand slightly decreased due to high gold prices, while the investment sector showed mixed results. Gold demand, excluding over-the-counter transactions, was 8% higher than the five-year average but 6% weaker compared to the same quarter last year, reaching 1,147 tons. Including over-the-counter and stock flows, total demand increased by 6% year-on-year, reaching 1,267 tons. Net central bank buying during the quarter amounted to 337 tons, the third highest in the reported period, but it did not match the exceptional buying in the third quarter of 2022 (459 tons). However, central bank demand year-to-date is 14% higher than the same period last year, reaching a record 800 tons. Investment demand in the third quarter was 157 tons, a 56% increase compared to the previous year but below the five-year average of 315 tons. Global gold ETFs experienced a smaller outflow of 139 tons in the third quarter compared to the same period in 2022, and bar and coin investment declined by 14% year-on-year to 296 tons, mainly due to decreases in Europe. OTC investment amounted to 120 tons in the third quarter, contributing to the overall demand for gold. Jewelry consumption decreased by 2% year-on-year, reaching 516 tons, reflecting the impact of high gold prices. However, jewelry fabrication remained relatively resilient, declining by just 1% to 578 tons due to inventory build-up. Demand for gold used in consumer electronics continued to decline, falling by 3% to 75 tons. Mine production reached a record high of 971 tons in the third quarter, contributing to a total gold supply of 1,267 tons, a 6% increase compared to the previous year. Recycling also increased by 8% year-on-year, reaching 289 tons.