Which 5 countries have the highest gold demand?
China is the world's number one consumer of the precious metal
Rowan Dunne
Which five countries buy more gold than the others? China, India, Thailand, the United Arab Emirates and the United States are the world’s top consumers, according to a blog post on Saturday by the U.S. Gold Bureau.
The precious metals specialist says China is the world’s top buyer. It attributes this to gold’s cultural value in the country and its perception among citizens as being a sound investment. The country consumes about 984 metric tonnes of gold annually, two-thirds of which is imported.
India sits in spot number two. The U.S. Gold Bureau says the country’s gold mining industry is quite small and that India primarily relies on imports for its gold needs.
Thailand takes third place; its gold demand increased by 7 per cent in Q3 last year. The country consumes around 90 metric tonnes of the commodity per year, which is mostly used for jewelry.
The UAE is the fourth largest consumer globally. The country’s rate of gold consumption rose by almost 320 per cent after the pandemic but it has since declined. In Q3 last year, jewelry sales in the Arab nation dropped by 15 per cent.
Lastly, the U.S. took spot number five in gold demand. Similar to the UAE, gold consumption in the country rose by 18 per cent in 2022 before declining due to the metal’s rising price.
The U.S. Gold Bureau says the ongoing conflict in the Middle East is the reason why gold’s value has ascended above US$2,000 per ounce. Its price has risen by approximately 9 per cent since Hamas attacked Israel on Oct. 7 last year. Russia’s inability to export gold because of the Ukraine conflict is another contributing factor.
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Gold retains value amid economic difficulties
Overall, the precious metals distributor and analyst says gold is a worthwhile investment. It says the commodity retains its value through financial woes and political turmoil.
The U.S. Gold Bureau was established in 2003. Its parent company, Lone Star Tangible Assets, holds the only American state-administered precious metals storage facility in Texas.
The distributor sells gold, silver, platinum, palladium and an assortment of rare expensive collectible coins.
Calibre Mining is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
