Gold is the most malleable metal. It is dense, soft and ductile and its properties remain without tarnishing when exposed to air or water.
Due to its unique properties and luster, gold has found applications in fabrication, jewelry, coinage and dentistry.
declined 21% in 2016, primarily due to lower demand from India and China.
use of gold declined a modest 2% in 2016, while it was supported by stronger demand for plating salts and a stabilizing of gold used in bonding wire production.
increased 24%, representing another year of stellar growth, largely due to stronger demand for gold as a safe haven.
demand for gold was 5% lower in 2016. Japan remains the largest market in the dentistry industry, accounting for 50% of global demand.
demand declined 7% in 2016 due to higher gold prices and fall in offtake from India.
Supply & Demand
|Net Hedging Supply||-40||-39||108||21||21|
|(+) Industrial Fabrication||429||421||403||365||354|
|Of which Electronics||307||300||290||258||254|
|Of which Dental & Medical||39||36||34||32||30|
|Of which Other Industrial||83||85||79||76||70|
|Net Official Sector||544||409||466||436||257|
|(+) Retail Investment||1,407||1,873||1,163||1,162||1,057|
|Of which Bars||1,056||1,444||886||876||787|
|Of which Coins||351||429||278||286||271|
|ETF Inventory Build||279||-880||-155||-125||524|
|Exchange Inventory Build||-10||-98||1||-48||86|
2016 Gold Demand (Tonnes)
Total physical demand declined for the third successive year, falling by 18% in 2016, largely due to decline in jewelry demand from Asia, while all areas of demand were generally weaker.
Gold Supply (Tonnes)
Mine Production by Region (Tonnes)
The top 20 gold producers registered a net year-on-year gain of close to eight tonnes with strong increases in the United States and Australia with off setting losses in Peru and Mexico.
Gold Production by Country (Tonnes)
Total identifiable investment, which includes physical bar investment, coins and changes to ETF holdings, gained 52% in 2016 to reach 1,579 tonnes, the highest since 2012. This gain was aided by the increased level of ETF holdings during the first half of the year.
Global official coin demand – Coin demand grew by 3% year-on-year in 2016, as the gold price decline towards the end of the year triggered buying activity amongst price-sensitive investors.
Physical bar investment - Demand for bullion bars decreased by 10% year-on-year to 787 tonnes in 2016.
Exchange Traded Funds - ETF holdings increased by 34% in 2016, with substantial inflows into global ETFs in the first ten months of the year. This performance was the result of strengthened gold prices following increased geopolitical uncertainty and higher market expectations for an increase in US interest rates.
Source: GFMS Gold Survey 2017