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.