Gold Demand Trends: Central Banks Lead the Charge
Larry Berman marked the 55th anniversary of Nixon's decision to take the US off the gold standard in an interview on August 17, 2026. This event is often seen as the start of irresponsible government spending. Berman notes that he's not a 'gold bug' but appreciates the utility and long-term appreciation of owning gold jewelry.
In 2014, Berman gave a keynote speech at the Gold Show in Dawson City, Yukon, predicting that the gold market would go nowhere for several years. This prediction was largely correct, as the market remained stagnant for about five more years. Berman attributes this to governments' fiscal irresponsibility and the fiat money system.
Gold demand is driven by jewelry fabrication, accounting for 45% of global demand, followed by investment (28%), central banks (22%), and technology and industrial use (5%). India and China dominate jewelry consumption, while US-listed ETFs have seen significant growth in recent years. Central bank reserves now represent about 17% of all gold ever mined.
Berman predicts that central bank demand will remain strong, but industrial demand may decline as alternatives are used due to rising gold prices. Jewelry demand will fluctuate and adjust over time, depending on rates of change and general income levels. Speculative investment demand is difficult to gauge, but it drives the swing factor considerably.