Is Gold Consumption Pattern High Around the World?
To gain knowledge about the gold consumption pattern, the consumption pattern of other precious metals, and the reason why it is still high, we must know the types of precious metals available in the world. The list of the countries that produce these metals and the world region that consumes it high. It is a fact that highly producing countries are also the top consumers of these metals. The Middle East is considered a land of gold, but mining and production-wise, the list is different. Every year this list changes.
Interestingly if supply reduces in any of these producer countries, the prices of precious metals hike all over the world. The worry is that continuous mining is exhausting the metals. Still, the consumption pattern of these metals is rising day by day. The countries engaged in the production of precious metals are Australia, China, Russia, South Africa, Canada, Indonesia, Peru, Ghana, and the state with the largest open-pit gold mine in world-Uzbekistan.
Top 3 Precious Metals in the World
- Gold – INR: 41,580/10 gram
- Silver – INR: 44,250/ 1 kg
- Platinum – INR: 21,000/ 10 gram
Each of these metals has its specialty. The use of gold is mainly in making ornaments and different types of jewelry. It comes in the form of 24/22/18 and 14 karat. Silver metal is used in jewelry, gift articles, statues, and other decorative crafts. The metal platinum is primarily used in jewelry. The consumption pattern of the precious metals varied as per the factors given below.
- Demand-supply ratio
- Political Instability
What is the Gold Consumption Pattern Across the World?
The vast population in the world is mad over gold. Because the reason behind this is gold the metal worth value and to invest. The investment in gold is mainly to show your financial status. The countries in Asia are well known for the highest amount of consumption of gold. It is easy to buy and sell gold without losing too much.
1. In Asia, a country like China purchases gold in huge metric tons. As in it imports 2/3rd amount of the golds it requires to use in the jewelry and industrial purpose. Vietnam and Indonesia also rank in the world list in the consumption of gold.
2. The countries in the Middle East, including Iran, Turkey, Dubai, Kuwait, and Saudi Arabia, are the biggest consumer of gold, and it is mainly in the form of jewelry.
3. Wherein India, the production of gold is too much below the world average. It is the only country on the earth where the poorest of the poor you will find has some amount of gold. Because Indians consume the highest amount of gold in the form of jewelry during festivals and marriage.
It is the tradition in India to gift items of gold and silver on the occasion of childbirth, child naming ceremony, birthday, and in the marriages of a girl child. After marriage, it is tradition to gift gold or silver to a daughter-in-law. When a girl’s husband comes to his in-law’s house for the first time after the marriage, it is tradition to gift a gold ring, a gold chain, or anything that the family affords. Apart from this, there are several occasions where a married couple gets gold and silver in some other form. To wear gold in everyday life is a tradition in India.
4. The USA is the third-largest consumer of gold in the world. It consumed 34.8 tonnes of gold every year, as recorded by a GFMS Gold Survey Report
Other Countries With High Gold Consumption Pattern
In addition to India, which proudly occupies the first position in the matrix of top 10 countries for the global gold consumption pattern, there are many other countries like UAE, Indonesia, United Kingdom, Turkey, Iran, Italy, South Korea, and so on, contribute to the highest fraction of gold demand across the globe.
China is the second-largest consumer of gold jewelry in the world. In China, jewelry consumption occupies 65% of the space in the overall gold consumption pattern. However, the demand for gold in China has fallen by 8.6% by the year 2019. This decline in the demand for gold has led to a negative pattern of gold consumption in the country.
The United States is the third-largest contributor to the gold consumption pattern of the world. Though, the demand is rapidly declining in the United States because of rising gold prices and reducing the purchasing power of the US dollar.
Germany stands at the fifth position in the list of top 10 countries for the highest gold consumption rates. The country has been recorded to consume 5.4 Tonnes of gold in the last three months of the year 2019. However, the falling economy and shooting gold prices have resulted in declining gold demand in this country.
The truth is that every precious metal is a symbol of status. Among these known three, Gold is at the position of ‘King of the metals” and hence, has a very impressive gold consumption pattern. And almost everyone in some or other form invests in the gold. This makes the consumption of gold worldwide is larger than the rest two.