Why is the demand for gold increasing?

Gold bars: a safe investment?
Image: AFP

The demand for physical gold for investment is increasing again. In other areas, global demand for gold has plummeted. Is 2020 a good or bad year for the precious metal?

D.he worries about the corona pandemic are increasing again – and this is also noticeable in the demand for gold as an investment. As Louise Street from the industry organization “World Gold Council” in an interview with F.A.Z. reported, global demand for bars and coins was 222.1 tons in the third quarter, up from 154.3 tons in the previous quarter. However, the increase was counteracted by weaker demand for gold in other areas, so that overall global gold demand in the third quarter was as weak as it has been for eleven years.

Germany is evidently a very special case, as Street continued. In this country, the demand for physical gold is still exceptional. Around 120 tons of gold were bought in Germany in the first nine months. That beats everything that has been observed in other countries, both per capita and in absolute numbers. Even in all of the United States taken together, gold was not bought as much. Analyst Street explained that, among other things, with German history – and the particular fear of inflation.


Related Articles

Back to top button