Rising Gold Investment Demand in 2025
Investors continue to flock to gold as a hedge against uncertainty. In our gold market outlook 2025, we note:
Record investment demand in 2023–24, expected to climb further in 2025.
Buyers include retail traders, institutional investors, and sovereign funds seeking portfolio diversification.
Driving factors: political, economic, and social anxieties that increase the appeal of gold as a safe-haven asset.
“Investment demand has been the single most important factor lifting gold prices and remains the core of our gold market outlook.”
Central Bank Gold Buying: Facts vs. Myths
A persistent myth is that central banks have stopped buying gold. CPM Group’s data shows:
Since 2008, central banks average 10 million ounces of annual gold purchases.
In 2024, they bought 8 million ounces—a modest decline driven by price sensitivity, not lack of demand.
When gold prices rose ~25%, central banks spent roughly the same amount of money, acquiring fewer ounces but maintaining reserve allocations.
U.S. Dollar & Treasury Holdings Remain Strong
Contrary to sensational headlines:
The U.S. dollar index is up versus recent years.
International holdings of U.S. Treasuries exceed $9 trillion, a record high.
Global investors are not dumping the dollar or Treasuries; they continue to view them as cornerstones of a balanced reserve portfolio.
Basel III Changes & Gold Capital Treatment
Clarifying another frequent misconception:
The July 2025 BIS rule changes are separate from Basel III capital requirements.
Gold’s regulatory treatment under Basel III remains unchanged, ensuring banks’ continued confidence in holding gold as a reserve asset.
Silver Market Overview: Surpluses & Investment Demand
Our silver market outlook 2025 reveals:
A sharp rise in investment buying in 2023–24, with even stronger net purchases expected in 2025.
No genuine “silver deficit”—minable supply and above-ground inventories are at record highs.
Fabrication demand has been healthy but is not the primary driver; investment demand is the key to recent price rallies.
“Honest analysts see silver surpluses, not deficits. Above-ground inventories remain ample, and investment buying continues to underpin prices.”
The Astrologers Fund
This presentation took place at The Astrologers Fund monthly luncheon.
Visit them at the link below to learn more or attend a future event.
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