- On average more than 60 percent of gold demand is from jewelery. Investment demand accounts for 20 percent, while a little more than 10 percent is industrial. About half of the world gold jelewery demand comes from China, India, Turkey and the Middle East. When it comes to investment demand, Europe, India and the U.S. are the major players, while Japan is mostly associated with industrial demand.
- India is by far the biggest consumer of gold jewelery. Most of the gold sold in China is 24-carat gold. In the Middle East, Dubai, or the City of Gold as it is also known, has become the center of the gold trade in the region. Customers come from all over the world. Turkey is the second largest exporter of jewelery gold and the fourth largest market while in Europe Italy remains the main manufacturer.
- In most cultures people buy jewelery gold because of its intrinsic value. It is often given as a gift during weddings and other festivities. Because of Christmas and Diwali, a popular Hindu festival in India, the fourth quarter of the year records the strongest demand.
- About 12 percent of gold demand is for dental and industrial usage. In North America, Europe and Asia, it is mostly used to manufacture electronic ccomponents.
- People invest in gold for a variety of reasons. In times of global inflation, its value remains unfettered. High prices make it a choice for diversifying a portfolio. It is also used by some investors as a hedge in order to protect the overall value of their investments.
- Most gold purchases are done over the counter. It is up to the parties involved to assess the risk involved. Cases of fraud are not uncommon. The most unflexible method of gold trading is through stock or capital markets. Some dealers are affiliated with organizations such as the London Bullion Market Association, which acts sometimes on behalf of its members.
Demand for Gold
The World Market
Why People Buy Jewelery Gold
Industrial Demand
Investment in Gold
Where is the Gold Market?
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