May 20, 2022

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Saudi Arabia buys 237 tonnes of gold in 5 years

Saudi Arabia buys 237 tonnes of gold in 5 years

World Gold Council data show that Saudis bought 237 tonnes of gold for more than 5 years, especially from the beginning of 2017 to the end of the first quarter of 2022.

The World Gold Council’s quarterly report, a copy of which was obtained by al-Arabia, found that consumer demand for gold in Saudi Arabia increased by 6% in the first quarter of 2022 to 11.7 tonnes, compared to 11 tonnes. Quarterly of the previous year.

Record consumer demand Precious metal About 44.2 tonnes last year, 31.1 tonnes in 2020, 46 tonnes in 2019, 49.6 tonnes in 2018 and 54.4 tonnes in 2017.

Demand for gold jewelery in Saudi Arabia increased by 16% from 9.1 tonnes in the first quarter of 2022 to 7.8 tonnes in the same quarter of 2021.

The report observed that demand for gold coins and bars in the country fell by 18% to 2.6 tonnes in the first quarter of the year, compared to 3.2 tonnes in the same period of 2021.

The per capita demand for gold in Saudi Arabia was 1.2 grams per person, 0.9 grams in 2020, and the pre-epidemic level in 2019 is approaching 1.3 grams.

Worldwide, demand for gold rose 34% to 1,234 tonnes in the first quarter of 2022, from 919.1 tonnes in the same period of 2021.

Amid geopolitical concerns related to the Russia-Ukraine war and rising record inflation around the world, gold ETFs led to demand growth in the first quarter.

The report points out that gold exchange-traded funds have recorded their strong quarterly receipts since the third quarter of 2020, supported by demand for secured assets.

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The reserves of ETFs rose by 269 tonnes in the first quarter of this year, outpacing 174 tonnes in 2021.

Investment in gold and coins was 282 tonnes in the first quarter, 20% less than in the first quarter of this year.

Central banks around the world increased their reserves by 84 tonnes in the first quarter of this year, doubling purchasing volumes from the previous quarter, but these quantities are down 29% from the same quarter in 2021.

In the first quarter of 2018, the technology sector recorded a demand of 81.7 tonnes of gold, due to increased use of the precious metal in the electronics sector.

Worldwide jewelry consumption lost its momentum in the first quarter, recording a decline of 4% to 517.8 tonnes per annum, and this decline is attributed to weak demand in China and India.