Gold is rare. Today there are 165,000 metric tonnes of stocks in existence above ground. If every single ounce of this gold were placed next to each other, the resulting cube of pure gold would only measure 20 metres in any direction. The demand for this precious and finite natural commodity occurs in many geographies and sectors. Around 60% of today’s gold becomes jewellery, where India and China with their expanding economic power are at the forefront of consumption. In East Asia, India and the Middle East, gold has powerful cultural meaning, accounting for approximately 70% of the world’s gold jewellery in 2009. But jewellery creates just one source of demand; investment, central bank reserves and the technology sector are all significant. Each is driven by different dynamics, adding to gold’s strength and independence. In creating supply, gold mining companies operate on every continent of the globe. This broad geographical dispersal means that issues, political or otherwise, in any single region are unlikely to impact the supply of gold. Beyond mine production, recycling accounts for around a third of all current supply. In addition, central banks can also contribute to supply should they sell part of their gold reserves. It is worth noting that after 18 years as net sellers, collectively central banks are now effectively net buyers, causing not only a significant decrease in supply but a corresponding, simultaneous increase in demand.
That is an amazing fact about if it were all laid next to eachother it would only be 20 meters. That just does not seem too long really. It really makes you think then of how rare it really is.
It's uncommon fact Ginger but good one. Many of us don't know this part of gold in fact. Even I didnt knew it. Thanks for sharing.
One of the major supply sources is from the jewelry sector in India, especially Southern India. The average annual salaries in that part of the world are rising by an estimated 10% per year or more, so I expect the demand from India to increase proportional to it. Another factor which can drive the price of gold upwards!
