This is how the epidemic affected gold.

Between January and March, 1,083.8 tonnes of yellow precious metal were sold worldwide, one percent more than in the same period in 2019. In contrast, supply decreased by 4 percent to 1,066.2 tonnes, as closures due to the coronavirus epidemic interrupted gold mining and recycling, Conclude Befektetési Zrt. He highlighted, presenting the latest international data according to MTI.

In the first quarter, stocks of gold investment funds (ETFs) traded in gold increased by almost 300 tons to 3,185 tons, a record level. Investment gold purchases totaled 539.6 tonnes in the first quarter, 80 percent more than in January-March 2019.

However, demand for other gold products fell, according to the announcement: jewelry lost 39 percent less, to 325.8 tonnes, a negative record. they bought 19 percent less gold bars, 150.4 tons. Overall, 567.4-ton gold retail purchases were 28 percent lower than in the same period last year.

Gergely Juhász, CEO of Conclude Investment Ltd., noted that the world’s largest consumer of jewelry is China, where purchases fell 65 percent.

According to the World Gold Council, gold consumption of 73.4 tonnes of those operating in the technology sector was 8 percent lower than in the first quarter of 2019.

Although central bank gold reserves continued to grow amid market uncertainties, net growth of 145 tonnes in the first quarter of 2020 was 8 percent less than the previous year.

He concludes that the epidemic also had a negative impact on gold supply: several mines were closed, taking production to a record low of 795.8 tons over five years, 3% less than the previous year and recycling activity. It also stopped in many places.

An ounce of gold (1 ounce = 31,1035 grams) closed the first quarter at $ 1,596.6, 23 percent more than the previous year. The exchange rate has continued to rise since then, reaching unseen heights in eight years, now almost 9 percent higher than at the end of March, at around $ 1,735.