Consumer demand for gold in the world in 2020 fell to a minimum over the past 11 years (up to four thousand tons). This is stated in the report of the World Gold Council (WGC).
Against the background of the pandemic, people did not need gold, the annual demand fell by 14 percent. The sales figures for gold jewelry also fell to historic lows. At the same time, investment demand for the metal showed record values. It increased by 40 percent, reaching a new maximum of 1.77 thousand tons. The demand for bullion and coins also increased (by three percent).
The price of the precious metal in dollars has increased by 25 percent over the year. Gold supply fell by four percent. At the same time, some countries showed an increase in production, including Russia (by three percent). However, banks around the world have reduced their purchases. Russia remained the third largest buyer of gold, increasing its reserves by 27.4 tons.
According to analysts, the popularity of bitcoin may grow in the next 3-10 years, while gold, on the contrary, risks not being liked by investors. In the long term, the value of the most popular cryptocurrency in the world could exceed $ 50 thousand