Historically, gold has been viewed as a hedge against inflation and a store of value while offering portfolio diversification. In the last 15 months, gold prices have been on an absolute tear driven by several factors, making the yellow metal even more attractive.
According to a World Gold Council report, global gold demand reached an all-time high of 4,974 tonnes in 2024, setting a new value record of US$382 billion. This performance was driven by central bank purchases and increased investment demand. In fact, central banks acquired 1,045 tonnes of the precious metal in 2024.
Investment in gold saw substantial growth, rising 25% year over year in 2024 to 1,180 tonnes, the highest level in four years. This increase was tied to renewed interest in gold exchange-traded funds (ETFs), while traditional investments in physical gold bars and coins remained stable.
On the supply side, total gold production reached a new record of 4,794…
