The volume of transactions in the precious metal par excellence has exceeded 150 billion euros per day over the last twelve months, making it the most traded financial asset after currencies. Despite record highs in its price, investors are more active than ever in gold trading.

The intrinsic value of gold, which carries no credit risk, cannot be inflated, and has remained unchanged throughout history, has made it the safe-haven asset par excellence for investors in times of economic uncertainty and makes it particularly attractive when it comes to diversifying and making our savings profitable.

This characteristic has made gold more popular than ever in the economic and geopolitical context we have been experiencing in recent years. The price and demand for the golden metal have reached record highs over the last two years and show no sign of abating in 2024.

Global gold demand held firm in the first quarter of the year, rising 3% year-on-year to 1,238 tonnes and marking the strongest first quarter since 2016, the World Gold Council (WGC) announced.

More liquidity than other markets

The gold market is large, global and highly liquid. The WGC estimates that investors’ and central banks’ holdings of physical gold amount to approximately 4.7 trillion euros, to which must be added 0.9 trillion euros in open interest through derivatives traded on exchanges or over-the-counter (OTC).

“The gold market is more liquid than virtually any other financial asset,” the WGC notes. This is demonstrated by the very high trading volumes of this asset, which according to WGC data in the last twelve months have exceeded 150,000 million per day, 139,000 million on average over the last five years.

Moreover, gold trading volumes have surpassed those of German bonds and US debt. Only the S&P 500 stock index accumulates a higher trading volume: 195 billion per day on average over the last five years. As well as the global foreign exchange market, which plays in a different league and exceeds 6 trillion euros per day.

This gold boom on the international markets, thanks to the growing demand from central banks, speculative investment and the interest of individuals who want to protect their savings in the current economic context, leads many analysts to believe that the gold rush still has a long way to go.

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