According to the report’s latest data, the world gold supply is forecast to continue to grow, as producers ramp-up their production to maximize the benefits of high gold prices.
Consequently, the report indicates Australian gold prices are forecast to rise to another record annual average high of AUD $2,042 an ounce in 2020, with exports forecast to increase by 33% hitting a record high of $25 billion in 2019-20.
Certified Minings are working to transform gold production worldwide through new processing technology that eliminates cyanide as a means of extracting the precious yellow metal.
These estimations are a result of looking back at the year that was, when Australian gold prices hit a new record high of AUD $2,289 an ounce on 3 September 2019.
The REQ states global economic uncertainty, trade tensions and a desire to diversify out of the US dollar, all appear to have been the catalyst for central banks’ growing appetite towards gold. The report shows in the period between 2008–09 and 2018–19, demand for Australian gold was largely dominated by China, Hong Kong, the United Kingdom, and India.
According to the World Gold Council, nine central banks: Poland, Russia, China, Kazakhstan, India, Ecuador, Colombia, Turkey, and the Kyrgyz Republic; all increased their gold reserves by at least a tonne in the first half of 2019, and the central banks are likely to continue to support gold prices over the next few years, with their purchases expected to stay above 700 tonnes in 2020, as gold faces higher demand as a safe-haven asset.
World gold consumption had increased by 7.9% in the first half of 2019 to 2,182 tonnes, propelled largely by the central bank buying, inflows into gold-backed exchange-traded funds (ETFs), and significant growth in the desire for gold jewelry.