Gold’s record prices are reshaping demand as investors replace jewelry buyers – Metals Focus

By Neils Christensen – Kitco News

Investment demand has been a critical pillar of support for gold in recent years and, while the unsustainable rise in global sovereign debt remains a key driver in the precious metal’s long-term uptrend, one research firm is warning investors to keep an eye on another pillar that has weakened.

In a recent report, analysts at Metals Focus warned investors that record-high gold prices are taking a significant toll on global jewelry demand, with consumption expected to fall to its lowest level since the pandemic.

The U.K.-based research firm forecasts that global gold jewelry consumption in 2026 will be more than one-third lower than in 2023. The decline is significant enough that jewelry is expected to lose its position as gold’s largest demand component, overtaken by bar and coin investment.