The World Gold Council reported a total gold demand in 2023 of 4,899 tonnes. This was the highest on record and 3% above demand in 2022. Excluding what it refers to as OTC (over-the-counter) or off-exchange transactions (an estimate that captures the difference between gold supply and demand), 2023 demand was a bit (-5%) below 2022, but still very strong. 

We have been highlighting the following changing gold demand dynamics as being at play: Strong central bank buying as a dominant driver of gold prices in 2023, with demand from the official sector representing over 20% of total gold demand for the year. While net purchases of 1,037 tonnes in 2023 fell just short of the record 1,082 tonnes central banks purchased in 2022, the figure is more than double the pre-2022 annual average net purchases of about 500 tonnes of gold per year. 

This is an impressive trend. And is expected to continue in the longer term. In contrast, holdings of global gold bullion ETFs continued to see outflows in 2023, dropping by 244 tonnes, driving total investment demand to a 10-year low, another reflection of investor’s apathy towards gold as an asset class.

MVIS® Global Junior Gold Miners Index

02/20/2023 - 02/20/2024

Source: MarketVector. All values are rebased to 1,000. Data as of February 21, 2024.


About the Author:

Ima Casanova joined VanEck in 2011. Prior to VanEck, Ima was Managing Director and Senior Equity Research Analyst at McNicoll Lewis & Vlak and established the firm's metals and mining research department. Previously, she was an Equity Research Analyst at Barnard Jacobs Mellet USA and BMO Capital Markets and held positions as a Production Technologist, Offshore Wellsite Supervisor, and Petroleum Engineer for Shell Exploration and Production. Ima has both an MS and a BS (magna cum laude) in Mechanical Engineering from Case Western Reserve University.


For informational and advertising purposes only. The views and opinions expressed are those of the authors but not necessarily those of MarketVector Indexes GmbH. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts, and other forward-looking statements, that do not reflect actual results. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. MarketVector Indexes GmbH does not sponsor, endorse, sell, promote, or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. The inclusion of a security within an index is not a recommendation by MarketVector Indexes GmbH to buy, sell, or hold such security, nor is it considered to be investment advice.