Banyan Gold Corp. (TSXV: BYN, OTCQB: BYAGF)
The New Yukon Gold Rush
According to the China Gold Association, domestic gold consumption exceeded 1,000 tonnes in 2023, representing a year-on-year increase of approximately 9%, with sales of gold jewellery increasing by 8% and sales of gold bars and coins increasing by over 15% year-on-year.
As the Chinese Lunar Year of the Dragon approaches in 2024 (10 February 2024), the enthusiasm of Chinese consumers to buy gold continues unabated, despite the fact that the price of gold is near its highest level ever. Gold has become a very popular consumer and investment product nowadays, especially among a growing number of young people, nearly has overtaken stocks as the safest investment option.
World Gold Council released on January 31, Global Gold Demand Trends Report shows that in 2023, despite the domestic gold price soared 17%, but the total demand for gold jewellery within China still reached 630 tonnes, up 10% year-on-year. Meanwhile, due to soaring gold prices, domestic gold jewellery consumption in 2023 reached a record high of 282 billion yuan.
Shanghai broadcaster CGTN reported that all signs point to strong consumer gold sales this year, with rising gold prices actually providing an extra incentive for people to buy gold, as consumers see the precious metal as an asset that continues to appreciate in value. As a result, higher gold prices have not discouraged buyers in the run-up to this year’s festive season.
Wang Lixin, chief executive officer of the World Gold Council China, said the price of gold in yuan terms rose 16.8 per cent last year, a very attractive return compared with other mainstream financial assets.
He noted that the global gold jewellery market is still showing resilience in the face of record high gold prices, with demand for gold jewellery in 2023 essentially flat year-on-year, a small increase of 3 tonnes. China is the most important growth driver, with the post-epidemic economic recovery leading to a 10% year-on-year increase in demand for gold jewellery in the Chinese market for the full year, offsetting a 6% decline in India over the same period.
Looking ahead to 2024 global gold supply and demand, Wang Lixin believes that gold demand investment is expected to rise, driven by over-the-counter investment. Global central banks may continue their pace of significant gold purchases.
