Gold demand was stronger in 2022 than in more than a decade before.
Compared to 2021, demand for gold increased by about 18 percent last year to 4,741 tons, according to the World Gold Council. Since 2011, demand for gold has exceeded 4,000 metric tons every year; only in 2020 was demand lower. Supply, on the other hand, from mines is falling short. Closing the gap are scrap gold, central bank sales and, to some extent, hedging (forward or futures sales) by producers. High inflation, a weak U.S. dollar and geopolitical crises have lifted the price of gold. Gold bars and coins were very popular. Central bank gold purchases increased by a whopping 152 percent in 2022 compared to 2021, marking a new all-time record. And as long as the Russia-Ukraine war continues - with no end in sight - central banks will continue to buy heavily. China and Turkey are particularly eager to buy. Overall, it was emerging markets in particular that were among the gold buyers. Turkey recently sold three tons of gold. But this shows that the precious metal has become a fixed trading vehicle in the financial sector.
In 2022, gold-backed ETFs released about 110 tons of gold, up from 189 tons in 2021. In 2020, gold-backed ETFs still bought 874 tons of gold. This year, the majority expect gold investment to continue to rise as geopolitics and the recession make gold shine as a safe haven. So gold prices should remain well supported as global gold demand should be resilient across all major consumers. China's reopening should also have a positive impact. And if gold performs well, it usually drags the silver price along. So good also for Chesapeake Gold or Osisko Development, for example.
Chesapeake Gold - https://www.commodity-tv.com/ondemand/companies/profil/chesapeake-gold-corp/ - takes care of gold-silver deposits in North and South America. The main project is the Metates project (gold, silver, zinc) in Mexico.
Osisko Development - https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/ - has projects in Canada and Mexico (Cariboo, Tintic, San Antonio). The focus is to become a mid-tier gold producer.
Current corporate information and press releases from Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
