LONDON, (Reuters) – Global demand for the precious metal fell to the lowest level since 2020’s last quarter as investors sold it off.

The WGC stated that there was strong demand from central banks, jewellers and small retail investors who were buying gold coins and bars.

According to the WGC’s latest quarterly report, total gold demand in July-September fell from 894 tonnes last year and 1 084.9 tonnes in third quarter 2019.

This shows the continued impact of coronavirus pandemic.

As the virus spread, central banks stopped buying and jewellery sales plummeted in Asia. However, the risk of economic harm prompted huge stockpiling by investors mainly from the West.

The safest store of value is gold.

As economies recover, central bank demand and jewellery consumption have partially recovered. Although smaller investors are purchasing at a quicker rate than in the past, large investors tend to be more fickle.

ETFs (exchange traded funds) that store gold were sold last year due to economic recovery and again in this year’s year, as interest rates rose which would make non-yielding metal less appealing.

Louise Street, senior market analyst at the WGC, stated that ETF losses will be mitigated by strong consumer demand and central banks for the entire year.

She stated that jewelry demand is expected to continue exceeding last year’s levels. However, overall investment demand for 2021 will decline despite strong bar and coin demand. (Graphic: Gold demand, https://fingfx.thomsonreuters.com/gfx/ce/znvnezgmxpl/WGC%20Q3.JPG)

The WGC forecast demand from jewellers at 1,700–1,800 tonnes for 2021, which would compare to 1,401 tonnes in 2020 and 2,123 tonnes in 2019.

According to the report, it said that central banks would buy more than 500 tonnes of metals this year. That’s up from 255 tons in 2020 and below the 605 tons they purchased in 2019.

Here are the numbers and some comparisons for the third quarter.

GOLD DEMAND (T)*

Q3 Q2Q3 %?%

2021-2021 2020 Changes

Q-onQ Y’on-Y

Jewellery 442.6396.6 32.9 12% 33%

Technology 83.8 80.2 77.2 4% 9%

Electronics, 68.9 66.4 63.2. 4% 9%

Other Industrial 12.0 10.9 10.9 10%

Dentistry 2.9.2.9.3.1 0% -8%

Investment 235.0 283.8 495.0

-of which bars & coins 261.7 243.1 221.0 8% 18%

– ETFs & similar -26.7 40.7 273.9

Central banks 69.3 190.6 -10.6 -64%

Demand total 830.8 951.2 894 894.4

* Source: World Gold Council, Gold Demand Trends Q3 2021