Gold in the Global Economy: Market, mining and modernisation
Today, those attributes continue to define and differentiate gold. Prized by investors, cherished by consumers and deployed in a range of technological applications, gold is an asset like no other, contributing to cultural traditions, financial stability, wealth creation and industrial markets.
In recent years, recognition of gold’s unique characteristics has propelled annual consumption to record levels of almost 5,000 tonnes per annum, fuelled by demand from consumers, investors, central banks and industrial users. Around three-quarters of that demand is satisfied by newly mined gold, yet supply increases by little more than 1.5% annually, providing a favourable long-term backdrop for the market.
Supply growth is constrained for multiple reasons, not least because gold miners tend to operate in some of the most remote and challenging regions of the world. In spite of these tough operating conditions, responsible miners can make a real difference, contributing approximately US$60 billion annually to host economies, including taxes, employee wages, and payments to local communities and suppliers.
Nonetheless, producers, refiners and retailers of gold are under scrutiny like never before. Stakeholders are calling for more robust environmental, social and governance (ESG) processes and this has led to sustained and consistent progress.
This report analyses gold’s role in the global economy – from those who mine and refine it to those who cherish it, invest in it and make use of it. Analysing supply and demand trends across the globe, our report makes three central observations:
- Interest in gold is broad, deep and growing, fuelled by demand from sovereign states, investors, savers and consumers.
- Gold mining can deliver widespread social, economic and environmental benefits, when supported by advances in technology and new operational models.
- Challenges persist across the gold industry, but these present an opportunity to drive change through innovation and ensure that gold is a fit-for-the-future asset.
