When people think of gold the first they think of is gold necklaces, glittering bangles, rings coins and bars. The yellow metal has been prized for centuries and has more applications and worth.
Gold is the most malleable metal in the world. It is corrosion-resistant, has excellent thermo-conductivity that makes it excellent to use in engineering and various technological applications. Gold wires are used in a lot of equipment and instruments. The metal is also used to protect astronauts. Gold nanoparticles have been used in Rapid Diagnostic Tests, fuel cell catalysts, solar cells, computers and televisions.
There are many uses for gold but there is only a finite amount of gold in the world. The price of gold is affected by the laws of supply and demand and the demand for gold is always growing. When you buy or sell bullion, knowing the price of gold and keeping track of fluctuations.
The modern gold market has been growing and diversifying since the 70s. The volume of gold that is produced triples on a yearly bases and the amount of gold that is sold has quadrupled. All over the world, gold is flourishing. Gold is bought by a diverse set of consumers now than at any previous time in history.
Quick Facts About Gold Supply
Civilization have always held gold in high esteem for centuries. The precious metal has been used for different things from currency and jewellery. Since the melting of the first gold bead in 4600 B.C. People have mined close to 190,000 tons of gold which equals to 77% of the recoverable gold in the world. Half of the gold that is still in circulation was mined in the last 50 years. According to the World Gold Council. There is still fifty-four thousand metric tons left that is recoverable at cost. The current rate of gold mining in the world is 3,100 metric tons a year. It is believe that all the gold that is left in the world will be mined in the next 20 years.
The supply of gold might be drying up but gold itself is being recycled. While mining accounts for 75% of the annual gold supply the rest comes from recycling. The recycling industry is driven by gold dealers who buy old and unused gold. Most of this gold is from jewellery (about 90%) the rest is from technology.
Since the financial crisis of 2008, people have been buying gold because it is known for its ability to protect its purchasing power and minimise financial losses during an economic crisis. Over the last ten years, the economy has recovered but the price of gold has also shot up to incredibly high levels. Gold supply increased between 2017 and 2018 but the gold demand rose even higher. When demand is more than supply the price of gold is affected. The gold from recycling supports the supply of gold. In 2018, it managed to pump the supply by up to 1%. It is important to the gold market when you sell bullion. Your old gold ensures that there is enough gold to meet the demand.