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What is the state of Gold right now?

24 Nov, 2022

The deeply emotional, fiercely cultural, and highly valuable commodity of gold is an evergreen precious metal. Its surface beams with otherworldly brilliance. It is used to make jewelry all over the world. Be it a simple ring or an ostentatious Indian adornment, every occasion is incomplete without gold. It’s widely considered a surefire investment that people use to diversify their portfolios. Its physical properties like nonreactive stability make it long-lasting in nature. Similarly, its monetary value never fades and only seems to grow with time. Hence it doubles as a status symbol and as a tool to grow wealth. It is used also in prevalent technologies like semiconductors and thin bonding wires.

All these factors make gold one of the most traded materials after crude oil. Central banks also use it as security to back up their reserves. Explore our free gold import and export data and subscribe for more in-depth information.

The Trade Vision is a premier data provider and market intelligence company with decades of import-export experience. Access data on the go with our accessible and comprehensive data reports from over 100 countries.

A brief history

We have always cherished natural beauty in all shapes and forms. Especially in small objects which can be owned and possessed. This is true for gold, just as it is true for diamonds, rubies, seashells, and even colorful feathers of tropical birds. Gold has been used ornamentally and as a currency for about 6,000 years. Its use as a currency is typically associated with medieval civilizations. Yet the gold standard has also played a big part in modern financial history. At the end of WWII, the Bretton Woods system was created to promote stability and amend the Gold Standard.

Gold export analysis

Gold is traded on a large scale and is prone to fluctuations in supply and demand. Subscribe to unlock full access to our gold export data for more information. Switzerland tends to have a large reserve owing to its vast watch market and banking sector. China is one of the biggest markets for gold owing to its coveted cultural value and vast population. Other countries like UAE which have crude oil are rich economies with extensive gold reserves. Wealthy countries tend to have large gold reserves.

Top gold exporting countries (2020)

  1. Switzerland ($68.5 billion)
  2. Hong Kong ($33 billion)
  3. United Arab Emirates ($28.8 billion)
  4. Russia ($18.7 billion)
  5. Australia ($17.7 billion)

Gold import analysis

Rich countries in the west have enormous gold reserves to maintain fiscal stability. Islamic countries like UAE and Turkey, on the other hand, have a long and traditional relationship with the precious metal. These countries have a huge jewelry market that is crucial to their economy. In Turkey, oftentimes the monthly rent is charged in terms of gold. Turkey also has a growing gold mining industry.

Top gold importing countries (2020)

  1. Switzerland ($87.4 billion)
  2. United Kingdom ($83.7 billion)
  3. United States ($48.2 billion)
  4. United Arab Emirates ($38.4 billion)
  5. Turkey ($23.7 billion)

What to expect

According to the Bank for International Settlements, between the period of 2012-2020, 51% of above-ground gold was tied up in jewelry. Meanwhile, 26% was in Bars and coins, 8% in technology, 3% in securities, and 12% in central banks. Gold demand saw a sharp rise after the pandemic. This underlines its status as a secure investment.

The International Council for Mining and Metals has declared its support to decarbonize the mining industry in line with the Paris Agreement. Sustainability and responsibility principles as well as climate adaptation and resilience strategies are the topics of discussion around the precious metal. Subscribe to our service to get more insight about the current biggest importing and exporting opportunities around this valuable commodity.