Last night, I attended the Annual LBMA Dinner in London, joined by representatives from central banks, refineries, depositories, and international bullion dealers such as GoldCore. This event is always insightful, but this year’s discussions were particularly compelling given the significant price movements over the past 12 months.
As expected, conversations turned to the role of gold and what demand statistics reveal about why individuals and institutions are increasing their holdings. Central bank demand, a perennial topic, stood out again. As we’ve highlighted in the past, central bank gold purchases have been unprecedented in recent years, and the trend shows no signs of slowing.
The latest World Gold Council statistics, released this week, report that central banks purchased a net 60 tons of gold in October—the highest monthly total for 2024. India, Poland, and Turkey accounted for over 60% of these purchases, driving a shift away from the Western financial system.
However, it’s not just central banks reshaping the physical gold market. U.S. states are making moves that could have a profound impact. This week, Texas proposed legislation to enable gold and silver to be used as a medium of exchange in business transactions. Two bills under consideration would allow holders of gold and silver specie and currency to use them as "legal tender in payment of debt" within the state.
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