Why is gold high demand?

Nowadays, the demand for gold, the amount of gold in the central bank's reserves, the value of the US dollar, and the desire to keep gold as a hedge against inflation and currency devaluation help boost the price of the precious metal. Since the early 1970s, the amount of gold purchased annually has nearly tripled and gold markets have flourished around the world. This diversity in demand for gold and the self-balancing nature of the gold market underpin the strong qualities of gold as an investment asset. In the second quarter, investors got rid of their 39 metric ton gold ETF shares, according to new data from the World Gold Council.

For those looking to diversify their portfolios, investing in a Gold IRA is a great way to gain exposure to this precious metal. Juan Carlos Artigas, global research director at the World Gold Council, said in an interview with Kitco News that global gold consumption has returned to pre-pandemic levels, driven by the increase in jewelry, strong demand for ingots and coins and constant purchases from central banks. Kitco (news ): Despite persistent bearish sentiment in the future markets and the outflows of publicly traded products, demand for physical gold remained strong in the third quarter, according to the latest research from the World Gold Council.