Jewelry, Investment Account For 60% Of Global Gold Demand.
The reality that gold is a safe investment haven has sparked an increasing desire for the commodity which jewellery and investment account for over 60 percent of the total 5.29 million kilograms or 186.8 million ounces global demand as at this month.
The breakdown shows jewellery takes a large chunk of 37.29 percent and investment accounts for the balance of 26 percent according to data published by Buyshares.co.nz.
A further breakdown shows Central bank’s demand for gold accounts for 12.14 percent while other notable sectors in gold demand include bar demand (7.45 percent), industry (6.07 percent), electronics (4.86 percent), coin (3.85 percent), medals (1.13 percent), other (0.92 percent). Dentistry recorded the least demand at 12,587 kilograms or 0.23 percent.
In July, Nigeria’s Central Bank paid N268.6 million to purchase a 12.5kg gold bar, Nigeria’s first artisanally-mined gold processed and refined according to the London Bullion Market Association (LBMA) standards.
The Apex bank presented the cheque for the amount to Presidential Artisanal Gold Mining Initiative (PAGMI) forto boost the Naira reserves in Nigeria’s External Reserves.
This investment has now moved the government to improve gold mining operations in the country in a measure to generate no fewer than 250,000 jobs and over $500 million annually in royalties and taxes to the federal government.
The research by Buyshares.co.nz which highlighted the growth of gold as an investment avenue noted that “Gold as an investment is subject to cyclical volatility since many investors speculate on its value. The high demand for gold for investment can be linked to the fact that the precious metal is considered a safe haven in the event of market volatility. This year, the market experienced the highest volatility rate due to the economic impact of the coronavirus pandemic. In general, gold can be used in portfolios to protect the purchasing power, reduce volatility, and minimize losses during moments of market shock.”
The Buy Shares research also overviewed countries with the highest demand for gold highlighting 15 top countries with the demand totalling 2,042,725 kilograms as of September 2020.
China has the largest share at 700,442 kilograms, while India is second at 625,561 kilograms. The United States is a distant third with its goal demand almost five times less than China at 148,316 kilograms. Turkey and Germany emerged fourth and fifth at 100,380 kilograms and 90,472 kilograms.
Buyshares.co.nz
Comments are closed.