Global Gold
Gold remains one of the most valuable and sought‑after minerals globally
Production, Product Types, Grades & Benefits
Gold remains one of the most valuable and sought‑after minerals globally. In 2024, total world mine production was about 3,000 metric tons, led by China (~370 t), Australia (~310 t), and Russia (~310 t). Other major producers include Canada, the U.S., Ghana, and South Africa. Figures: USGS Mineral Commodity Summaries, 2025 (Gold).
Common Gold Product Forms
Doré Bars:
Semi‑pure alloy of gold and silver poured at mine sites (typically 70–90% gold).
Refined Bullion:
Good Delivery bars (~400 oz, 99.5% minimum purity) accepted by the London Bullion Market Association (LBMA).
Kilobars:
1‑kg bars widely traded in Asian markets and investment channels.
Coins & Medals:
Investment and collector products, purity usually 22K (91.7%) or 24K (99.9%).
Jewelry & Fabricated Products:
Major demand sector, especially in India, China and Middle East.
Grades and Standards
24 Karat
(99.9% pure)
Standard for bullion, investment coins, ETFs.
22 Karat
(91.7% pure)
Widely used in jewelry (India, Middle East).
18 Karat
(75% pure)
Popular in Western jewelry markets.
LBMA Good Delivery
Standard
Ensures bars of ~400 oz meet 99.5% minimum purity, guaranteeing global acceptance.
Key Benefits of Gold
Store of Value:
Recognized globally as a hedge against inflation and currency volatility.
Liquidity:
Highly liquid market with deep trading venues (London OTC, COMEX, Shanghai).
Portfolio Diversification:
Safe‑haven asset in times of uncertainty.
Industrial & Technological Use:
Conductivity and resistance to tarnish make gold essential in electronics and medical devices.
Cultural & Jewelry Demand:
Longstanding role in tradition, marriage, and wealth preservation
Gold Market: Growth, Supply & Demand (Global View)
The global gold market is shaped by investment demand, central bank purchases, jewelry consumption, and industrial applications. Annual supply comes mainly from mine production (~75%) and recycling (~25%). Central banks have been net buyers since 2010, underscoring gold’s role in reserve diversification.
Demand Breakdown
Investment:
Exchange‑traded funds (ETFs), bullion bars, coins — sensitive to interest rates and geopolitical tensions.
Central Banks:
2023–2024 saw record purchases (~1,000 t annually), led by emerging markets seeking de‑dollarization.
Jewelry:
Roughly 45–50% of total demand, concentrated in India, China, and Middle East.
Technology:
About 8–10% of demand, driven by electronics, connectors, and medical devices.
Supply Dynamics
Mining:
Global mine production is steady at ~3,000 t/year, with few major new discoveries.
Recycling:
Acts as a flexible supply source, rising when prices increase.
Cost Pressures:
Higher energy, labor, and regulatory requirements influence output economics.
Market Outlook
Demand:
Likely supported by continued central bank purchases, steady jewelry demand, and safe‑haven flows.
Supply:
Constrained by lack of new large deposits and long project development timelines.
Price Drivers:
Interest rate expectations, U.S. dollar strength, inflation trends, and geopolitical risks will continue to drive volatility in gold prices.
Sources (selected)
- United States Geological Survey (USGS), Mineral Commodity Summaries: Gold (2025 edition) — mine production data.
- World Gold Council, Gold Demand Trends (2024–2025) — demand categories and central bank buying.
- London Bullion Market Association (LBMA), Good Delivery Rules — bullion standards.
- International Monetary Fund (IMF), Central bank gold reserve updates.