An overview of gold markets in the past 30years

Back in the early 1990s gold was predominantly driven by consumers. Net fabrication demand – jewellery and technology – accounted for the vast majority of gold demand from 1992-2002. In contrast, during the past decade, net fabrication has made up a healthy but smaller 44% of annual average gold demand, reflecting developments within the gold industry, the macroeconomic backdrop, and changes in the gold price. Jewellery and technology demand also now play an important balancing counterpart to investment and central bank demand. Combined, gold’s role as a consumer good and investment asset underpin its unique dual nature and effective role as a diversifier.

The geographical spread of demand has also changed over the past thirty years. was published Asian demand made up 45% of the world total. Today, the region makes up almost 60%, led by transformational economic growth, especially in India and China. This is a clear illustration of wealth expansion as one of the most important drivers of gold demand over the long run.