Gold Bar and Coin Demand Rises

 Investors bought gold bars and coins in the U.S. at the fastest quarterly pace in 13 years during the second quarter of 2023, according to the World Gold Council (WGC). Buyers snapped up 32 metric tons of bars and coins during the quarter, bringing demand for the first half of the year to 65 metric tons. That’s the highest first half level since the WGC began tracking investment demand for gold in 2008.

“The collapse of SVB (Silicon Valley Bank) and Signature Bank late in Q1 created shockwaves that carried into Q2, with investors scrambling to buy physical bullion products,” said the WGC.

Globally, investment in gold bars and coins rose six percent during the second quarter, compared to the year-ago period, to total 277 metric tons.

Buying was especially strong in Turkey, which has been hit by runaway inflation, loose monetary policy, and a weak currency. Demand during the second quarter was more than double the five-year average, and for the first half of 2023 buying increased five-fold to nearly 100 metric tons.

Demand across the Middle East hit a 10-year high, led by buying in Iran and Egypt, countries that are also suffering from high inflation rates.

China’s demand for gold bars and coins jumped by a third during the second quarter, compared to the year-ago period when COVID-19 restrictions limited buying.