How much gold is on the market
Gold is known for its stable value and has historically served as an important economic commodity. However, the gold price is not immune to volatility. This article explores the factors that contribute to fluctuations in the gold price and their implications for investors.
Home / The Spot Price of Gold
According to the World Gold Council, about 201,296 tonnes of gold have been mined in history up to the end of 2022. This gold is present in various forms: as jewellery, as private investments, as central bank reserves and in industrial applications. Most of this gold, about 92,947 tonnes, is incorporated in jewellery. The rest is divided between private investments (40,596 tonnes), official sector (central bank reserves) (34,923 tonnes), and other categories such as industry and technology (29,045 tonnes).
Annual Production
Annual gold production varies, but in 2022, approximately 3,580 tons of gold were produced.
This gold mainly comes from mining, but also from recycling. Recycling plays an increasingly important role due to its environmental friendliness and the rising costs of mining. Additionally, the price of gold also plays a significant role in recycling. The higher the price, the more individuals will recycle gold.
Supply and Demand
Annual gold production varies, but in 2022, approximately 3,580 tons of gold were produced.
This gold mainly comes from mining, but also from recycling. Recycling plays an increasingly important role due to its environmental friendliness and the rising costs of mining. Additionally, the price of gold also plays a significant role in recycling. The higher the price, the more individuals will recycle gold.
| Category | 2016 | 2024 | Difference (% Point) |
|---|---|---|---|
| Jewellery | 60% | 45% | -15% |
| Bars & Coins | 20% | 22% | +2% |
| Central banks | 10% | 17% | +7% |
| Other (tech, etc.) | 10% | 15% | +5% |
In eight years, the percentage of gold used for jewellery has decreased by 15 percentage points. At the same time, the share for bars and coins has increased by 2 percentage points, and for central banks by 7 percentage points, which is nearly a doubling compared to 2016.
The trend I see is that people are increasingly buying gold as an investment or as a store of value (like central banks) and less for jewellery. This may be partly because the rising gold price makes gold jewellery less accessible to a wider audience. On the other hand, private investors, central banks, and institutional parties are increasingly recognizing the value and strength of gold as a stable investment.
At Heritage Gold, you don’t buy gold because it’s beautiful, but because it is a proven stable investment that preserves your purchasing power (since currencies lose value). You purchase this centuries-old product as insurance and to strengthen your financial resilience through diversification.
Economic Impact
The gold price is influenced by a complex interplay of supply and demand, economic indicators, and geopolitical tensions.
An increase in demand or a decrease in supply can cause the price to rise significantly, while economic stability and abundant mining can put downward pressure on the price.
Conclusion
Gold remains an essential part of the global economy and serves as a reliable investment for both private investors and governments.
With a total supply of over 201,000 tons and consistent annual production,
gold continues to be a valuable and stable commodity in an ever-changing financial world.
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