Gold continues to be one of the most precious commodities on Earth, and it is also one of the most versatile. Its uses cover fields such as jewellery (e.g. wedding rings), investments, coin production, medallions, exchange trade funds, consumer electronics and dentistry. As of September 2016, the World Gold Council reported that there is a worldwide gold demand of almost 1,000 tons amounting to $42.6 billion. The numbers on their own are staggering, but what’s most interesting of all is to look beyond the figures and dig into the trends that are defining the global gold market today.
The price of gold has risen in almost every major world economy during 2016, suggesting that the dark days of the global recession are gradually fading into the history books. In the UK, the gold price is almost 40% higher today than what it had been 12 months ago.
The largest category of gold demand is investment, with a demand of 1,064 metric tons across the first six months of this year. It has been the most in-demand component of gold throughout 2016, a status that is chiefly due to upsurges in demand from Western investors.
However, gold demand within India is on the wane. With the country’s government continuing its drive towards transparency, in alliance to the volatility of gold prices in India and a reduction in people’s disposable income, the gold market has known better times in the world’s second most populous nation.
In contrast to the upsurge in gold demand for investment is the falling demand for jewellery, a victim of the continually increasing prices of the commodity. With a global demand of $36.3 billion from January to June, it is at its lowest ebb since 2010, with Asian markets especially suspect due to a combination of factors.
This infographic from Eazy Cash offers an interesting snapshot of the world’s gold industry as of the end of 2016.