The worldwide annual gold demand is approximately 3766 tons which mainly comes from jewelers, investors and industrial consumption. New gold that is brought to market comes from new mine production and gold recycling.
Asia and the Middle East take a little over two-thirds of new demand. Out of total annual demand 57% is used for jewelry, 31% are bought by investors, and 11% is used in various industries.
Gold is a desirable metal for industry because it will not tarnish or corrode. It can be made into wire, hammered into thin sheets, and used as alloys with other metals. It is used in a wide variety of applications because of its unique characteristics.
New supply of gold mainly comes from new mine production (59%), gold recycling (35%), and sales (6%) from central banks and other institutions.
Keeping up with demand is not easy - It takes an average of 10 years to bring a new mine online.
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Neal Vanderstelt
Self-Proclaimed Economist
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