Gold has risen more than 12% year to do, continues to climb as it outpaces other assets.
A new report from the World Gold Council indicates that private purchases of gold reached 329 tonnes from April to June, a nearly fivefold increase from the previous quarter.
This surge in demand contributed to a total of 1,258 tonnes of gold being acquired during this period, marking the highest quarterly demand since records began in 2000.
Family offices, which manage the investments of ultra-high-net-worth individuals and families, are increasingly turning to gold as a way to preserve wealth in an uncertain economic environment. The report reflects a broader shift among the wealthy toward safe-haven assets driven by concerns over rising US government debt and the potential impact of interest rate cuts on bond yields.
In recent years there has been a significant increase in the population of ultra-high-net-worth individuals (those with $30 million or more in assets) has grown significantly, particularly in emerging markets such as Asia and the Middle East.
According to the World Gold Council (WGC), opaque or unreported purchases of gold bars have surged to record levels, particularly over the summer. These purchases are often made by private entities like family offices, whose transactions are harder to track compared to institutional investors.
OTC transactions in the gold market, which are often used to hedge positions in the futures market, are becoming increasingly significant. These transactions, while difficult to track, represent a growing component of overall demand for gold.
The Congressional Budget Office (CBO) has highlighted concerns that US government debt could reach levels not seen since World War II, especially if certain spending plans are implemented. This looming debt burden is another factor driving wealthy investors toward gold, as they seek to hedge against potential economic instability.
With the price of gold now over $2,500 per ounce, the price for a standard 400 oz LBMA “Good Delivery” Gold Bar is now over $1,000,000 USD.
