Gold is the most malleable metal. It is dense, soft and ductile and its properties remain without tarnishing when exposed to air or water.

Applications

Due to its unique properties and luster, gold has found applications in fabrication, jewelry, coinage and dentistry.

Jewelry fabrication
in East Asia rose by 40%, led by strong gains in China. In response to lower gold prices, jewelry demand saw an 18% year-on-year increase.
Electronics
declined by 2% in 2013. However total sales of semiconductors reached a record high, surpassing $300 billion in sales for the first time, increasing 45% on the previous year.
Official coin fabrication
posted strong growth, reaching a record high of 297 tonnes. Physical bar investment increased by 33% to a fresh record of 1,377 tonnes.
Dentistry
use of gold was 36 tonnes. in 2013, 6% lower than 2012.
Other industrial & decorative
demand increased by 1% in 2013, strengthened principally by demand from India and the Americas.

Supply & Demand

Supply 2009 2010 2011 2012 2013
Mine Production 2,613 2,741 2,839 2,861 3,022
Scrap 1,726 1,711 1,659 1,634 1,280
Net Hedging Supply -234 -106 11 -40 -48
Total Supply 4,104 4,346 4,509 4,455 4,254
Demand          
Jewelry 1,817 2,034 2,029 1,998 2,361
(+) Industrial Fabrication 414 469 458 415 409
Of which Electronics 275 326 320 284 279
Of which Dental & Medical 53 48 43 39 36
Of which Other Industrial 87 95 95 92 93
Net Official Sector -34 77 457 544 409
(+) Retail Investment 825 1,229 1,569 1,357 1,778
Of which Bars 536 935 1,242 1,036 1,377
Of which Coins 289 295 327 321 401
Physical Demand 3,023 3,809 4,512 4,315 4,957
Physical Surplus/Deficit 1,081 536 -3 140 -703
ETF Inventory Build 623 382 185 279 -880
Exchange Inventory Build 39 54 -6 -10 -99
Net balance 418 100 -182 -129 277

2013 Gold Demand (Tonnes)

 


 

Total physical demand rose by 15% in 2013 as higher jewelry offtake and retail investment countered the drop in industrial demand and was bolstered by net official sector buying.

2013 Physical Demand by Region (Tonnes)

China 1,283
India 987
USA 210
Turkey 176
Thailand 168
Germany 151
Rest of World 1,573

Consumption per Capita Rank

Hong Kong1
UAE2
Singapore3
Thailand4
Saudi Arabia5
Turkey6
Belgium7
Germany8
Canada9
Australia10

Gold Supply (Tonnes)

 

Mine Supply by Region (Tonnes)

 

Eight countries
posted gains of
over ten tonnes
with increases in
China, Canada and
the Dominican
Republic each
greater than 20
tonnes in 2013.
 

Gold Production by Region (Tonnes)

2012

 

2013

 

Investment

Official coin demand - Official coin minting posted a 43% increase reaching a record high of 297 tonnes.
Physical bar investment - Strong growth in physical bar investment which rose by 33% to 1,377 tonnes.
ETF inventory – Selling from gold ETFs during 2013 was substantial, contributing to the decline in identifiable investments.

Total identifiable investment, which includes physical bar investment, coins and ETF inventory build, fell by 45% in 2013.

Source: GFMS Gold Survey 2014