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The World Gold Council said investor appetite for gold due to the Corona crisis offset a collapse in jewelry production, which stabilized demand for the yellow metal in the first three months of 2020.
The recent outbreak of the Corona virus has disrupted the gold trade, given the massive impact of public isolation measures on the two largest gold markets, China and India, and the disruption of supply lines.
The pandemic caused confusion in the financial markets, leading to an increase in investment in the precious metal, which is one of the assets capable of maintaining its value in the long term.
“This is the biggest market shift I know of in my memory. It is very clear that the future is much bigger,” said John Reid, chief market strategist at the World Gold Council.
The board said in its latest quarterly report that index funds that store gold on behalf of investors, primarily in The United States and Europe added 298 tons, valued at about $ 16 billion, to their stocks from January to March 2020.
Meanwhile, the use of gold in jewelry making decreased to 325.8 tonnes, down 39% compared to the first quarter of last year, at the lowest level in at least ten years.
Gold prices have risen to their highest levels in eight years this year, exceeding $ 1,700 an ounce, and also posted record levels in other currencies such as the euro, the Chinese yuan and the Indian rupee.
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