Demand for Gold

Demand for Gold

Industrial Use:
In terms of industrial use, 85.3% of gold is supplied to the jewelry industry, 6.3% to the electronics sector, 2.0% to mints and 6.4% to other industries. Every year, more than half of the total demand for gold in the world is attributed to the gold jewelry industry. Since the jewelry industry accounts for such a large percentage of gold demand, investors should take note of the cyclical demand for gold by major countries such as China and India.  

Investment Needs:
Gold is an investment tool that can help investors avoid the risk of currency depreciation that comes with inflation, as its actual original value is preserved because its price will increase with inflation. Some private investors enter the market with an intention to profit from the rise of gold price; in the long run, as the supply of gold is restricted by production and costs, and the demand will continue to grow in a stable manner, gold price will grow steadily. As a result, gold has become a popular investment tool.