Page 52 - Bullion World Issue 1 May 2021

Bullion World | Issue 01 | May 2021

the world. Eight years ago, the gold ETF Looking at the first quarter, North "The full impact of the pandemic is still
market was mostly centralized in North American funds saw total outflows of unknown," he said. "We don't know the
American, Artigas noted. But the market 145.4 tonnes, representing 86% of the unintended consequences from all the
is nearly evenly split among investors in market, the WGC said. European funds stimulus that has been pumped into the
North America and Europe. He added lost 51.7 tonnes during the quarter, with global economy. We believethet thte
that Asian investment demand is also UK-listed funds accounting for most of macro-economic environment in 2021
seeing steady growth. the outflows, the analysts added. remains supportive for gold."

Source: https://www.kitco.com

Britain buys most of Russia’s

gold exports in January,
worth over $700mn

Russia exported 13.73 tons of exports in January. The metal was
rough gold in January, up 1.5 also delivered to Kazakhstan and
times year-on-year, according to Switzerland.
data from the Federal Customs
Service. In monetary terms, In 2020, Russia exported gold
exports almost doubled to $812 worth a total of $18.535 billion,
million, data shows. The customs which is 3.2 times more than during
service said that, in December, the previous year. In physical terms,
gold exports were higher – at 22 the export of gold in 2020 more
tons, worth $1.3 billion. than doubled – up to 320 tons
against 123 tons in 2019.
Supplies to the United Kingdom
accounted for more than 90% Source: https://www.rt.com
(12.9 tons) of all Russian gold

Central bank and consumer buying in
India and China arrest gold’s slide

Gold buying by central banks and Council. “It’s a reflection that demand
consumers in India and China is stirring was strong and is expected to be decent
hopes for a recovery in the market, going forward,” he said.
which has been hit by a wave of selling
this year driven by large exchange Demand for gold jewellery has also
traded fund outflows. The metal has rebounded in India, where imports
staged a tentative recovery in the hit a near two-year high in March of
past fortnight, rising about 2 per cent 98.6 tonnes, according to Bloomberg.
as a handful of bullish factors have “There’s been a sea change in sentiment after “taking into account the country’s
long-term national and economic policy
converged. in Asia,” Rhona O’Connell, an analyst at
brokerage StoneX in London, said. That strategy objectives”. “The appearance
of global spikes in government debts or
Two indicators have pointed to robust could provide a floor for gold prices if
demand in China, the world’s biggest central bank gold demand also remains inflation concerns further increase the
importance of gold in national strategy
consumer. The price of gold in the strong, she said.
country has traded at a premium to as a safe-haven asset and as a store of
value,” Hungary’s central bank said.
international prices in recent weeks, from Central banks bought 8.8 tonnes of gold
a discount in 2020. At the same time, in February, driven by India, Uzbekistan, Gold is still off about 8 per cent in 2021
the amount of gold withdrawn from the Kazakhstan and Colombia, according
Shanghai Gold Exchange doubled in to the World Gold Council, an industry despite the recent pick-up as investors
have shifted money into equities following
March from a year earlier to 168 tonnes, body made up of gold miners. Still, in
according to exchange data. Much of the first two months of the year overall, the rollout of coronavirus vaccines in
the US and Europe. The precious metal
this gold will have been used to restock central banks were net sellers of the
inventories in the manufacturing and metal, with sales totalling 17 tonnes, has fallen out of favour in part due to
rising bond yields, which make gold
retail sector following a strong period led by Turkey — the weakest start in
during the Chinese Lunar New Year in more than a decade. Hungary said last less attractive since it does not provide
investors with a fixed income stream.
February, according to John Reade, week it had increased its gold holdings
chief market strategist at the World Gold from 32 tonnes to 95 tonnes in March, Source: https://www.ft.com

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