Could another record breaking year for gold be ahead

A group of 10 Chinese insurers have been cleared to invest up to 1% of their assets (approx. $27.4 billion) in bullion. At current gold prices, this equates to 295 tonnes, that's 34% of 2024’s total bar investment demand (source: World Gold Council). Bar investment demand rose 10% year-on-year in 2024, reaching 1,185 tonnes. If these insurers act on their allocation, 2025’s investment demand could surge by at least 25% if all other sources remain flat. Gold’s 39 record high prices in 2024 were supported by a 25% rise in total investment demand.

With eight new all-time highs already in 2025, further capital inflows will likely sustain gold’s bullish momentum. Moreover, trading volumes on the Shanghai Gold Exchange have surged to 44,000 tonnes over the last week, which is more than 95% of weekly volumes seen over the last four years of trading. This implies that Chinese investors and market participants coming back from the Chinese New Year holiday are not yet being discouraged by new record highs in both US dollar and yuan terms.

Could another record breaking year for gold be ahead? We'll continue to ingest and digest information to bring you insights into the OTC gold market. Allowing you to make informed decisions around your own investment journey. Get in touch for a conversation around your personal circumstances and the best strategies for investing in gold.