Page 21 - Bullion World Issue 3 July 2021

Bullion World | Issue 03 | July 2021

When you look at fundamentals, we 815.7t, down 23% compared with Q1
see a beginnings of return to the 2020 Jewellery demand of 477.4tons,
normal of the Gold market. That a strong improvement from the very
means, as 2020 was categorised by weak Q1 2020, the demand was mainly
extra ordinary investment flows and from China and India. The coin demand
extraordinary weak consumer demand helped as well. Bar and coin investment
particularly in the middle of the year, of 339.5t was buoyed by bargain-hunting
as at the end of the year, we saw and inflationary pressures. Negativity
consumer demand recovering and in ETF’s as Gold ETFs* lost 177.9 tons
somewhat less investment in ETF’s. and net buying by central banks totalled
Gold demand (excluding OTC) was 95.5ton.

Jewellery demand growth in China and India
underpinned global strength
Quarterly jewellery demand in tonnes

Note: Data as of 31 March 2021. For an explanation of jewellery demand, please see the Notes and definitions download: www.gold.org/goldhub/
research/gold-demand-trends/gold-demand-trends-q1-2021/notes-and-definitions.
Source: Metals Focus, World Gold Council

See Gold Demand Trends: Q1 2021 for more details.

There was a continued recovery in the likely impact on weddings and The second wave of coronavirus has
jewellery demand in Q1. Q1 2021 was discretionary purchases been effecting countries and has created
less than Q4 2020 that is very much a • 2021 is, however, slightly different a lot of impact in the Gold market. The
seasonal effect. Year on year it was a from what happened last year: interesting thing to discuss here is,
very strong performance. India, China • No complete lockdown How Gold demand will perform. Q4 will
and RoW is contributing to its improved • Massive push to large scale give a decent indication. So when the
performance. vaccination economic condtions get better with the
• Trade better equipped through cases of covid falling sharply, we expect
India demand outlook digital and omni-channel retail a resumption and strong recovery.
for Q2 is cautious strategies
with second wave of • Softer prices amidst uncertainty
COVID-19 should support investment

buying
• Indian demand in Q1 2021 grew – • Trade aware and concerned not
showed us what to expect once the to lose personnel
pandemic is truly behind • Comparison to lower base in
• Outlook for Q2 cautious – high 2020 due to strict lockdown from
uncertainty following spike in cases, April till mid-May last year

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