Global gold market: industrial consumption - Golden Way Group

Global gold market: industrial consumption

Gold is not only a beautiful and expensive metal that is used for jewelry. First of all, gold is in great demand for industrial purposes. In general, there are 4 main directions of gold consumption in the world:

  • jewelry production, as the largest vector of the precious metal use;
  • gold reserves of state banks, to secure budgets of countries;
  • private investment in gold;
  • industrial consumption, as gold is used in a wide variety of industries.

In our article, we want to talk about the last one.

In which industries is gold in demand?

World industrial consumption of gold reaches hundreds of tons per year – this is one tenth of the total demand for gold in the world. And if you count all the gold used in equipment, household appliances, and other human activity products, then the number will be more than 18 thousand tons!

In what industries is this precious metal used?

  • Electronics has been the main gold-consuming industry among industrial sectors for several decades. It accounts for 7/10 of all gold used for industrial purposes. If you have a smartphone, computer or tablet, be sure that there are many microscopic gold components in its “stuffing”. Gold is especially valued in the electronics industry because this metal is malleable and can be used to make tiny parts, or to apply spraying. And gold is also a very good conductor of electricity.
  • Another area where gold is in great demand is dentistry. Making dentures, crowns, and implants using gold is not an innovation, but it is still effective. Dental industrial needs annually consume about 3% of all gold mining.
  • High-precision engineering, rocket production, and instrumentation also cannot do without gold. It is one of the most essential metals for the production of complex and high-precision machines and systems.
  • Cosmetology. The demand for gold in industrial cosmetic production is also increasing. The famous “golden threads”, creams and care products that contain gold are in demand.
  • Being closely related to jewelry, the watch industry uses gold not only for decorative purposes. Some parts of clock mechanisms are made of this metal.
  • The production of glass and fabrics using gold is an innovative technology that is also gradually becoming popular in the world market.

Global gold market: industrial consumption

The possibilities of using this precious metal in the chemical industry, for example, as a catalyst in the fuel system of road transport, are also being actively considered. There are also innovative ideas on how to use it to control environmental pollution.

Which countries use the most gold for industrial purposes?

Of course, the biggest industrial need for gold is in countries with a developed electronic industry, rocket and aerospace industries. If earlier the leaders in this area were Germany, Japan and the United States, now the demand for gold is gradually growing in other Asian countries, primarily among leaders of the electronics market – China, Korea. But the largest demand in the cosmetic, dental and pharmaceutical industries, surprisingly, is in India.

Is it worth investing in gold used for industry?

The answer to this question is simple. Of course it’s worth it. It doesn’t matter how you use of your gold asset in the future – whether you store it in a bank, sell it to industrial companies or turn it into beautiful jewelry, gold will remain one of the most reliable assets. If you are just a beginner in investing in gold, Golden Way can be your effective start. We extract gold, cast it into bars and control the quality of the metal ourselves. With us, you can get your own gold reserve and later invest it in any area you like.
Global gold market: industrial consumption

 

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