Even many years had passed, gold remains to play a paramount role for all cultures across the globe. Whatever business sectors it may be, this precious metal is always a great demand that many owners invest in. This is the reason why it consistently belongs to the most priced markets.
The Above-Ground Gold Supply
Perhaps, some people are wondering how much gold has been mined throughout history. Before going beyond the fundamentals of this metal, it is better to know that the above-ground gold supply is limited.
The gold deposit is hard to find. The truth is that metal extraction from any gold mine is time-consuming and an expensive goal. Another interesting fact about it is that gold is found on both grounds and the ocean.
Take note that ocean water can hold about 20 million tons of gold which is even a lot more than humankind has mined. Every one liter of seawater carries almost 13 billionths per gram of gold. Indeed, it is in billionths.
Gold metal is rare and analysts have estimated that there are over 170, 000 tons total of gold supply all over the world. If this amount of gold has been melted, it is going to fit in an Olympic pool with enough room.
The Gold Price
As stated by the World Gold Council, the gold production’s annual volume has been tripled this year. Well, it has been the same amount since the 1970s and the gold purchase’s total amount gets quadrupled annually. Hence, it can be said that the gold price has increased from around $45 in 1972.
Four major factors are affecting the gold price movement in the market today. First, it is the economic data. Second, there is supply and demand. Third, it is the policies of Central Banks. Lastly, it is the financial instrument demand investing in gold.
Gold – Where Does It Come From?
Miners are extracting precious gold metal coming from the ground. They do this on all continents except Antarctica. Here are the biggest gold producers in history: China, Australia, Russia, the United States of America, Canada, Peru, South Africa, Mexico, Indonesia, and Uzbekistan. The countries with the largest amount of gold include the United States, Germany, Italy, France, and China.
Major Uses of Gold
Once the gold has been mined, there will be refiners who are going to process this metal and make them in a bar form and see each piece. Then, buyers can decide to transform the bars into jewelry pieces, electronic components, coins, or keep them as a form of investment.
When it comes to supply, the demand for the gold market remains worldwide and it has various traders and industries. Four groups comprise the main gold demand components. These include jewelry, technology, wealth funds or private investors and central banks.
Gold is a very interesting commodity to explore more than the value it offers to investors and sellers. With the information given above, understanding gold will be easier.