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Gold demand rises as bullion shifts toward collateral use
First-quarter gold demand rose 2% to 1,231 tonnes, while demand value jumped 74% to a record $193 billion, helped by net central bank buying of 244 tonnes.
Gold’s recent rally is increasingly supported by demand for bullion as a form of working collateral rather than just a hedge, according to analysts speaking at the Rule Symposium in Boca Raton, Florida, reported by Mining.com.
Central bank purchases, physical metal flows, and growing interest in dollar alternatives are pulling gold and silver deeper into the financial system, the outlet said. Mining.com cited World Gold Council data showing first-quarter gold demand, including over-the-counter demand, increased 2% to 1,231 tonnes, while value climbed 74% to a record $193 billion.
The shift shows up in the composition of demand, Mining.com added. Bar and coin demand rose 42% to 474 tonnes, and central banks bought 244 tonnes net.
Mining.com also highlighted comments on market plumbing, noting that rising deliveries and warehouse withdrawals point to some large buyers wanting physical metal rather than only futures exposure. The article pointed to Battle Bank, which offers cash accounts, foreign-currency deposits, and gold and silver storage plus bullion-secured loans, describing products intended to let investors raise cash without selling bullion.
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