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Investing.com -- Global central banks purchased 1,045 metric tons of gold in 2024, valued at about $96 billion at Tuesday’s prices, according to the World Gold Council's (WGC) Gold Demand Trends report.
Poland, India, and Turkey were the largest buyers, contributing to what the council described as an “eye-watering pace” of gold accumulation.
The demand surge pushed total gold purchases to a record 4,974 tons, even as jewelry consumption declined due to rising prices. Central banks have now been net buyers for 15 years, but the pace of accumulation has roughly doubled since the war in Ukraine, as many sought to reduce reliance on US dollar assets.
“I think the biggest surprise on the demand side is the fact that central banks bought a thousand tons last year,” said John Reade, senior market strategist at WGC. “There’s been broad-based central bank buying, and more than we estimated at the beginning of the year.”
Despite 2023’s record-breaking purchases, the appetite for gold shows no signs of slowing, the report noted.
“Geopolitical and economic uncertainty remains high in 2025 and it seems as likely as ever that central banks will once again turn to gold as a stable strategic asset,” the council said.
Gold prices climbed 27% over the year as investors turned to the metal as a safe haven from conflicts in Ukraine and the Middle East, while central banks pivoted toward interest rate cuts.
Meanwhile, gold jewelry demand fell 11% to 1,877 tons, with China accounting for much of the decline. Jewelry consumption in China dropped below India’s for the second time in three years, reflecting weaker consumer demand amid soaring prices.
“We expect central banks to stay in the driving seat and gold ETF investors to join the fray,” the report said. “Jewelry demand will remain under pressure and we may see further growth in recycling. Mine supply is expected to remain robust.”
Reade noted that despite weaker jewelry sales, investment demand in China increased. “China remains the biggest gold market — obviously jewelry demand fell a lot, but investment demand increased,” he said. “The ratio between two could almost be used as a crude measure of economic sentiment within China.”