Asian tycoons, the real-deal "gold gluttons"!
The World Gold Council dropped their Global Gold Demand Trends Report for Q2 2024, and guess what? While overall global gold $Gold - main 2412(GCmain)$ demand grew year-on-year, it actually dipped if you take out the over-the-counter (OTC) transactions.
However, rich Asian investors are like legit "gold gluttons," driving OTC volume up a whopping 53% to 329 tonnes, more than making up for the huge drop in jewelry demand.
Let's break it down: with OTC trading booming and central banks worldwide keeping their gold buying spree alive, total global gold demand, including OTC, surged 4% YoY to 1,258 tonnes in Q2, setting a record for the strongest second-quarter demand since tracking began.
And it's all thanks to Asia's family offices hoarding physical gold bars like there's no tomorrow. Without OTC, total global gold demand was down 6% YoY at 929 tonnes.
Joseph Cavatoni, the Chief Market Strategist for the Americas at the World Gold Council, had this to say:
"Rich individuals and asset managers in China and other parts of Asia are piling into gold to ease their growing worries about credit, debt, and the overall financial landscape. In this rapidly changing world, holding physical gold gives them that 'peace of mind' vibe. And get this, over a quarter of the world's top 200 richest folks call Asia home!"
Now, why do Asian billionaires love the OTC market for gold? It's all about the mystery, baby! Most deals are done through traders or directly between buyers and sellers, no fancy trading platforms or clearinghouses required. Meanwhile, high gold prices made jewelry demand dive 19% YoY to 391 tonnes, and retail demand for gold bars and coins also slipped 5% to 261 tonnes.
Earlier this month, gold prices hit new heights, up about 15% so far this year. And the World Gold Council's crystal ball says gold prices will either hold steady or inch up a bit in the second half of the year. So, grab your popcorn, folks, it's gonna be a golden ride!
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