Page 23 - Bullion World Issue 3 July 2021

Bullion World | Issue 03 | July 2021

About the Central Banks story. It year. We have seen it already and we
has become quite interesting in last will continue to see it. Probably, it will be
few quarters. We saw a negative net level to level like 2020. The consumer
purchases and net sales of the central demand will recover from the disruption
banks in the Q3 2020. That became of corona virus. Moderate rather than
a concern amongst the media. We super strong net central bank purchases
continue to expect the central banks should continue.
as net buyers of Gold but not in strong
numbers as we saw in 2018 and 2019. On the supply side, we saw a very
Net purchases continued in Q1. strong performance on the Q1 of 2021

Central banks bought a healthy 95t in Q1 2021

Quarterly global central bank demand

The outlook is one of continued particularly from Mine supply as the
normalization, as countries are expected production was record high. But that
to face outbreaks of corona virus untill was moderated by some de-hedging
we get vaccinated . India had a bad and also recycling. One component of
impact due to the second wave of Gold market which doesn’t get attention
corona virus and it seems to be easing is recycling. The flows of recycling did
now. UK also went through the third increase in 2020 but only 11%. That’s
wave. Certainly things are getting better. low considering the level of Gold price.
However, seeing the situation, it will have Of course, recycling is one essential
an impact on Gold demand and probably components when we talk about Gold
will relax the impact of supply. We expect market.
to see investment demand in Gold this

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