Kazakhstan halts gold hoarding amid rising prices

Between July and September 2024, Kazakhstanis purchased nearly 14,000 gold bars, a 5.5% decrease quarter-on-quarter (QoQ), according to the National Bank. By the end of September, the price of gold exceeded $2,700 per troy ounce.

A total of 475.5 kilograms of gold bars were purchased in the third quarter, reflecting a 39% or 1.6-time decline QoQ.

During the reporting period, more than half of all gold (58% or about 8,000 bars) was bought by residents of Almaty. Residents of Shymkent and Astana each accounted for around 9% of total purchases or about 1,300 bars. In the previous quarter, Almaty residents also led gold purchases, with the Zhetysu region and Shymkent taking second and third place, respectively.

Year-on-year, gold sales increased by 1.6 times, rising from 8,500 bars. The total weight of gold purchased also increased by 25%. Since the beginning of 2024, Kazakhstanis bought nearly 48,000 bars, indicating higher demand compared to 2023, when 38,000 bars were sold over the entire year.

According to the National Bank, Kazakhstan offers five types of gold bars: 5, 10, 20, 50 and 100 grams. The most popular are the 10-gram bars (about 24% of total sales), followed closely by the 100-gram bars (also around 24%). Since 2017, when the National Bank’s sale and buyback program was launched, a total of 7.4 tons of gold, or nearly 200,000 bars, have been sold.

Over the past seven years, banks and non-bank exchange offices have purchased more than 41,000 gold bars (21% of the total gold sold on the market) from the public, with a combined weight of 1.1 tons. Nearly all of these repurchased bars are resold to the public, rather than being returned to the National Bank’s branches. Gold bars can be bought and sold at certain banks and exchange offices.

The National Bank advises buyers to handle refined gold bars carefully and to avoid opening the packaging, as it serves as a quality certificate that protects the metal from damage. Each bar comes with protective features, including a mirrored surface, microtext and a milled edge.

As of Oct. 21, the price of December gold futures was $2,748 per troy ounce, marking a 0.7% increase day-on-day. Between July 1 and Sept. 30, prices rose by 13%. This year, gold futures have set over 30 price records, a milestone not seen in over a decade. As per the National Bank’s rate, the price of one gram of gold is currently $87.