To gain knowledge about the consumption pattern of 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 produces these metals and the world region that consumes it high. It is a fact that highly producing countries are also the most top consumers of these metals. The Middle East is considered as 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 hikes 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 three precious metals in the world (as on 16th April 2020):
- 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. The 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 1) availability, 2) demand-supply ratio 3) pricing 4) purity 5), and the up-downs in International politics.
Let’s see the consumption pattern of precious metals across the world: with a primary focus on gold.
The vast population in the world is mad over gold. Because, the reason behind this is gold the metal worth to 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.
- 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.
- The countries from 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.
- 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 a 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.
- The USA is the third most consuming country of gold in the world.
The truth is that every precious metal is the symbol of status. Among these known three Gold is at the position of ‘King of the metals.” And almost everyone in some or other forms invests in the gold. This makes the consumption of gold worldwide is larger than the rest two.
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