Where Are the World’s ‘Gold Nations’?

(July 31,2023-Unkown)

The global gold market has made an impressive recovery after two years of successive decline from the COVID-19 pandemic. Presently, gold mining and investing have an estimated market cap of $13.2 trillion, which is great news for some of the top gold-producing countries in the world.

In this research, we will analyze World Gold Council data on central bank gold reserves and consumer demand for jewellery, ETF holdings and demand per capita at an international level. By investigating these findings, the countries with the most valuable gold reserves will be revealed.

As more and more experts and consumers remain concerned about a potential recession and an uncertain economic future, many are looking for ways to protect themselves and their savings. Living in today’s evolving world and changing economy, you may be looking at your finances and investment plan. Investing in gold is a smart choice and can help to provide stability during times of uncertainty. It is a great opportunity to protect your financial future, as well as diversifying your investment portfolio.

The USA is the Biggest Gold Nation in the World

United States

Gold Nation Score: 8.93 out of 10

The United States is the number one gold nation in the world, scoring 8.93 out of 10 in the ranking of 17 selected countries. The US had the highest volume of central bank gold reserves (8,133 tonnes) as well as ETF gold holdings (1,668 tonnes). Investopedia defines ETFs as “baskets of stocks or bonds that trade like regular stocks” which are “usually passively managed, meaning they seek only to match the underlying benchmark index.”. The largest gold exchange-traded fund is the SPDR Gold Trust, which is the go-to choice for investors looking to manage the precious metal.

Consumer demand for gold in the US is growing quickly, and CNBC has reported that bar and coin demand has strengthened by 5% year-on-year to 302 tonnes. There was a shift in key markets in March, as the US demand hit its highest quarterly level since 2010.

Germany

Gold Nation Score: 6.83 out of 10

Germany ranked second for the biggest gold-producing countries, with a score of 6.83 out of 10. Germany fell just behind the US in terms of its central bank gold reserves volume (3,355 tonnes) but recorded higher consumer demand (2.34 grams). The diversity of demand in the gold market underpins gold’s robust qualities as an investment asset.

Germany also has the third-highest volume of ETF gold holdings (401 tonnes) behind the United States and the UK. Furthermore, Investopedia reported that Germany consumed 5.4 tonnes of gold in the fourth quarter of 2019, and as of 2021, is the fifth largest consumer in Europe, behind Turkey.

Switzerland

Gold Nation Score: 6.57 out of 10

The mountainous country of Switzerland scored third place in the running for the most prominent gold nations, with a score of 6.57 out of 10. Switzerland is a wealthy country with a GDP per capita well above $80,000, so it correlates that the Swiss would also consume a lot of gold. As a major financial hub, Switzerland has among the highest ETF gold holdings (341 tonnes) as of the first quarter of 2023, and also had the highest consumer demand per capita (5.58 grams) compared to any other country, including the United States.

According to Swissinfo.ch, in September 2022, Switzerland is the top global importer of gold, purchasing CHF90 billion ($92.3 billion) of the metal in 2021. Although the country holds smaller gold reserves (60,646 million) than the US and Germany, it remains the world’s biggest bullion refining and transit hub. In February, Reuters reported that Switzerland sent 58.3 tonnes of gold worth $3.6 billion to Turkey in January, which is by far the most for any month, in records stretching back to 2012.

China is the Biggest Gold Mining Country in the World

Gold mining in China has driven the country to become the world’s largest producer of the precious metal. As of 2022, it was estimated by the World Gold Council that China’s mining industry produced over 330 tonnes of gold.

In the year 2007, gold output rose by 12% from 2006 to 276 tonnes, and China became the world’s largest producer for the first time, overtaking South Africa, which had been the largest for a continuous 101 years since 1905.

Two countries are tied as the second-largest producers of gold in 2022, with both Russia and Australia producing 320 tonnes of gold.

Demand for Gold in Egypt Increases by 55%, the Highest in the World

Egypt

Year-on-Year % Change: 55%

Egypt witnessed the highest increase in demand for gold, with a year-on-year increase of 55%. Demand in the country stood at 34.1 tonnes in 2021 before rising to 52.7 tonnes in 2022. As the Egyptian pound hit record lows and inflation accelerated, Egyptians resorted to gold to avoid uncertainty over the local currency. It was reported that gold bars and coins accounted for the bulk of purchases.

Iran

Year-on-Year % Change: 38%

Iran had the second-highest increase in its consumer demand for gold, with an annual increase of 38%. As Iran continues to battle with an uncertain economic future, people seek to ensure the value of their savings is not diminished by inflation. In the past four decades, it was reported that Iranians increased their belief and trust in gold as a method for reducing risk to their savings, which demonstrates the ongoing demand for the precious metal among consumer markets.

Vietnam

Year-on-Year % Change: 37%

Vietnam took third place with a 37% increase in consumer demand for gold. Andrew Naylor, the regional CEO of the World Gold Council, reported that due to the pandemic, many Vietnamese customers were wary of making high-value purchases. Still, sales picked up at the end of 2022. Vietnam’s strong recovery from the pandemic and its ability to handle the situation helped to increase consumer confidence, which led to an impressive rise in annual demand for gold.

Egypt’s Demand for Gold Bars and Coins Hits 693% Increase in ONE Year

Egypt

Year-on-Year % Change: 693%

Egypt also held the title for the highest increase in gold bar and coin demand, with a whopping 693% growth between 2021 and 2022. Arab Finance reported that Egyptian purchases of gold coins and bars jumped by 83% in 2022 to hit 4.4 tonnes.

Russia

Year-on-Year % Change: 374%

Russia ranked second with a growth rate of 374% in its gold bar and coin demand. The World Gold Council reported that demand for gold bars and coins grew faster in Russia in 2022 than in any other country, rising to nearly five times the level of 2021. In March, the central bank restricted sales of foreign currency, and on the same day, Vladimir Putin scrapped VAT on gold bar purchases, which sparked a surge in buying.

Iran

Year-on-Year % Change: 64%

Iran came third with a year-on-year growth rate of 64%, rising from 25.5 tonnes of gold bars and coins in 2021 to 41.8 in 2022. Similarly to the country’s consumer demand surge, the increased investment in gold bars and coins was spurred by a weak domestic currency, which resulted in soaring gold prices.

Vietnam Records Highest Demand for Jewellery in the World, with a 51% YOY Increase

Vietnam

Year-on-Year % Change: 51%

As well as ranking in the top three countries for its increase in consumer demand for gold in general, Vietnam has the highest jewellery demand for gold in the world, with a 51% increase between 2021 and 2022. According to the World Gold Council, in Ho Minh City, the jewellery output is estimated at 2,500 products per year. Since 2005, the demand for gold in Vietnam has increased rapidly.

United Arab Emirates

Year-on-Year % Change: 38%

Ranking in second place is the wealthy Middle-Eastern country of the United Arab Emirates. The UAE witnessed a 38% increase in its demand for jewellery, from 33.8 tonnes in 2021 to 46.9 in 2022. In 2022, it was reported that rising oil prices boosted sentiment among gold consumers in the Middle East. The second quarter saw an increase in jewellery purchases for the wedding and festival season among Indian customers, who make up a large proportion of the expat population in the UAE.

Australia

Year-on-Year % Change: 30%

In third place is Australia, which also made it to the top five in this index for its gold mining production. Australia witnessed a 30% increase in jewellery demand between 2021 and 2022. According to the WGC, the 30% growth in Australia’s annual jewellery demand was partly due to the base effects of the strict COVID restrictions at that time. Nonetheless, annual demand was healthy. The jewellery segment in Australia is projected to grow by 4.63% between 2023 and 2026.

Turkey’s Gold Value Soars by 142% in THREE Years

Turkish Lira

Increase 2020-2023: 142.01%

The Turkish Lira saw an increase of 142.01% in its gold value, rising from ₺14,029 to ₺33,952 per troy ounce. Many people in Turkey are turning to gold as a way to protect their savings against the lira, which has fallen 60 percent against the US dollar at a record low.

Egyptian Pound

Increase 2020-2023: 51.22%

The Egyptian pound had the second-highest increase in its gold value at 51.22%. This month, a new import scheme in Egypt was approved by the cabinet allowing incoming travellers to bring unlimited gold over the next six months, while only paying a value-added tax on it upon arrival. Prior to this, travellers to the country were banned from bringing in gold bullion. The aim of the scheme is to increase gold supplies in the local market to bring down the prices.

Japanese Yen

Increase 2020-2023: 22.80%

The Japanese Yen placed third with an increase of 22.80% in its gold value. The precious metal reached a high of 239,315 yen per troy ounce in 2022, which was higher than the previous record of 207,952 yen.

Louisiana Sees Biggest Increase in Interest for Gold Investment in the US, at 14.56%

Louisiana 

Increase in Searches Between 2022 and 2023: 14.56%

Louisiana is the US state searching for gold investment the most, with 5,700 searches in 2021 and 6,530 in 2022, up 14.56%.

Illinois

Increase in Searches Between 2022 and 2023: 12.67%

Illinois placed second out of all the US states, with an increase of 12.67% in searches for ‘gold investing’ and ‘buy gold’. Numbers grew from 21,710 searches in 2021 to 24,460 in 2022.

Arkansas

Increase in Searches Between 2022 and 2023: 12.46%

Arkansas fell just behind Illinois with a year-on-year increase in gold searches up 12.46%. Searches in Arkansas increased from 3,450 searches in 2021 to 3,880 searches in 2022.

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