Gold Demand – A Worldwide Market
Gold demand has a large impact on the true investment value of gold at all times. If the demand is higher, the price will be higher, and once the demand declines, the value will as well. There are many different reasons that countries have a high gold demand, but usually it is for investment and jewelry purposes.
Jewelry accounts for about ¾ of the gold demand in the world, with various countries making up the demand percentages. For example, the Middle East and Eastern Asia were responsible for about 72% of the gold demand in 2007, and there are just five countries that make up the majority of gold demand. China, USA, India, Italy, and Turkey are responsible for about 55% of the demand in the market.
In 2007, jewelry demand was in excess of $54 billion US, which easily made it one of the most popular consumer goods available. The US has the largest market for gold jewelry in relation to retail value, while India holds the market for volume of gold jewelry. The demand for gold in India, however, is driven by cultural and religious traditions rather than the global economy. Jewelry consumption has faced rapid expansion in recent years, although many countries still have room for a substantial growth in the demand of gold for jewelry.
When it comes to investments, gold has definitely been in higher demand in recent years. There are many different benefits to investing in gold that have increased its popularity, but it is mostly attributed to the stable value of tangible gold as an investment, as well as the lowered risk in a market that is very volatile when it comes to intangible investments. Industrial type uses for gold generally makes up about 13% of the demand, because it is needed for so many commercial and medical goods. It is known for corrosion resistance, superior electrical conductivity, and high thermal conductivity, which make it a desirable product for electrical components and computer chip boards. Medical demand is another market that is within the industrial market. These uses range from dental fillings to various implants and other uses because of its non-toxic nature.
There are many different uses for gold, and the increasing demand reflects the amazing versatility of gold, including all of the things that it can be used for. From collecting coins to helping detect and treat prostate tumors, gold can be found all over the world. The demand for gold has not superseded the supply, so the prices are in a good spot right now. However, as long as gold continues to be this useful and effective for so many markets, it will continue to be in high demand worldwide thus making it a good investment.