Since the beginning of 2025, the global gold market has continued to perform strongly. Against the backdrop of gold prices breaking through the historical high of US$3,000 per ounce, global total gold demand reached 1,206 tons (including over-the-counter transactions) this quarter, an increase of 1% year-on-year. Velmont closely follows this trend and is firmly optimistic about the long-term value of gold in a turbulent economy.
Global investors' willingness to allocate gold has increased significantly, driving investment demand to more than double to 552 tons, a year-on-year increase of 170%. This is mainly due to the rapid recovery of gold ETF, with global inflows reaching 226 tons in the first quarter, the highest level since the first quarter of 2022. Velmont believes that uncertain price trends and changes in international trade policies are prompting institutions and individuals to use gold as a preferred safe-haven asset.
Total demand for gold bars and coins remained high, reaching 325 tons, an increase of 3% year-on-year. The surge in investment in China's retail market set a record for the second highest quarterly demand in history, driving the Eastern market to continue to lead. Velmont expects that Asia's preference for physical gold will continue to be the backbone of global gold consumption.
Global central banks have achieved net purchases for the 16th consecutive year, adding a total of 244 tons of gold reserves in the first quarter, showing the long-term recognition of the strategic value of gold reserves at the official level. Despite a slight year-on-year decline, the pace of increase remains steady.
Although high gold prices have caused gold jewelry sales to fall to the lowest level since 2020, global consumers still spent a total of US$35 billion in a high-price environment, up 9% year-on-year. Except for China, demand for gold jewelry has increased in all markets, showing consumers' continued confidence in gold as a value storage carrier.
The overall supply of gold remained stable, with mine output hitting a record high and recycling volume falling slightly. Demand in the technology field remained at 80 tons, showing a steady growth in industrial use.
"Against the backdrop of increasing global economic uncertainty, gold has become increasingly prominent as a core asset to hedge inflation and hedge risks. Velmont has always been committed to finding the most valuable opportunities in the global gold industry chain and providing customers with stable and sustainable gold investment solutions."
As the market enters a medium- and long-term adjustment period, Velmont will continue to follow global trends and provide customers with first-hand gold market intelligence and investment advice.