The gold market is large, global, and highly liquid. We estimate that physical gold holdings by investors and central banks are worth approximately US$5.1tn, with an additional US$1.0tn in open interest through derivatives traded on exchanges or the over-the- counter (OTC) market.
The gold market is also more liquid than several major financial markets, including euro/yen and the Dow Jones Industrial Average, while trading volumes are similar to those of US T-Bills (Chart 9). Gold’s trading volumes averaged approximately US$163bn per day in 2023. During that period, OTC spot and derivatives contracts accounted for US$99bn and gold futures traded US$62bn per day across various global exchanges. Physically-backed gold ETFs (gold ETFs) offer an added source of liquidity, with global gold ETFs trading an average of US$2bn per day (Chart 10).
Chart 9: Gold trades more than many other major financial assets
Average daily trading volumes over the last year in US dollars*
Chart 9: Gold trades more than many other major financial assets
Chart 9: Gold trades more than many other major financial assets
Average daily trading volumes over the last year in US dollars*
*Based on estimated average daily trading volumes from 1 January 2024 to 31 December 2024, except for currencies that correspond to April 2022 daily volumes due to data availability, and UK Gilts and German Bunds that correspond to 2023 data.
**Gold liquidity includes estimates on OTC transactions and published statistics on futures exchanges, and gold-backed exchange-traded products.
Source: Bloomberg, Bank for International Settlements, International Capital Market Association (ICMA), Nasdaq, World Gold Council
Sources:
Bloomberg,
Bank for International Settlements,
International Capital Market Association (ICMA),
Nasdaq,
World Gold Council; Disclaimer
*Based on estimated average daily trading volumes from 1 January 2024 to 31 December 2024, except for currencies that correspond to April 2022 daily volumes due to data availability, and UK Gilts and German Bunds that correspond to 2023 data. **Gold liquidity includes estimates on OTC transactions and published statistics on futures exchanges, and gold-backed exchange-traded products.
Chart 10: Gold is liquid across key investment platforms
Average daily trading volume by point of access in 2024*
Chart 10: Gold is liquid across key investment platforms
Average daily trading volume by point of access in 2024*
Chart 10: Gold is liquid across key investment platforms
Average daily trading volume by point of access in 2024*
*Average daily trading volume from 1 January 2024 to 31 December 2024. Gold
liquidity includes estimates of OTC transactions and published statistics on futures
exchanges, and gold-backed exchange-traded products.
Source: Bloomberg, Nasdaq, World Gold Council
Sources:
Bloomberg,
Nasdaq,
World Gold Council; Disclaimer
*Average daily trading volume from 1 January 2024 to 31 December 2024. Gold liquidity includes estimates of OTC transactions and published statistics on futures exchanges, and gold-backed exchange-traded products.
The scale and depth of the market means that it can comfortably accommodate large, buy-and-hold institutional investors. In stark contrast to many financial markets, gold’s liquidity does not dry up, even at times of financial stress. Importantly too, gold allows investors to meet liabilities when less liquid assets in their portfolio are difficult to sell, or are mispriced.
