While India and China dominate the demand for gold, both countries face different scenarios when comparing supply gaps.With its huge jewelry industry, India’s consumption is 50 times higher than its domestic supply. Meanwhile, China produces more than one-third of the gold it demands.This graphic compares gold demand (in tonnes) versus domestic gold production in 10 selected countries. The data comes from the World Gold Council and was compiled by The Gold Bullion Company as of 2023.
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24 sats \ 5 replies \ @Undisciplined 6h
I think "consumption" is slightly misleading, as it gives the impression that the gold ceases to exist, when in reality gold is almost endlessly recycled. There's not necessarily a better single term, but for India and some others "accumulation" is probably more accurate.
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29 sats \ 4 replies \ @0xbitcoiner OP 6h
Yeah, I get that the term can be a bit misleading. The article about India says they use a 'ton' of gold for jewelry. I don't know the exact numbers, but electronics use gold too. So, if we take out those uses, what's left is probably for store of value (CB's).
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31 sats \ 3 replies \ @Undisciplined 6h
My understanding is that Indian, and other Southeast Asian, gold jewelry is functionally used as a store of value. They often melt some down when they need to dip into their savings and they pass it down to later generations to give them a financial cushion.
Electronics and other industrial uses are what I would think of as true consumption, because it can be uneconomical to recover the gold.
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23 sats \ 2 replies \ @0xbitcoiner OP 6h
Spot on! Jewelry is definitely a good way to store value. And the whole gold-in-food thing? That's just plain weird consumption!
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32 sats \ 1 reply \ @Undisciplined 6h
Who's putting gold in their food? Based on an episode of House MD, I believe that is severely poisonous.
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20 sats \ 0 replies \ @0xbitcoiner OP 6h
This isn't the first time I've seen something like this.
https://www.indiatimes.com/trending/wtf/salt-bae-24k-gold-coated-steak-585360.html
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11 sats \ 0 replies \ @flat24 7h
One of the things that surprises me is seeing how Mexico 🇲🇽 and Brazil🇧🇷, which have a fairly wide supply against their demand, that is to say that there is a lot of gold! It is extremely difficult to buy gold in South American countries. In Peru, for example, their central bank issues silver and gold coins, but I must point out that the yellow coins are extremely expensive, with a high premium on the price of gold. And the silver coins, although also highly priced, are Ag 925. And finding any of the main silver or gold bullion coins used for long-term investment is almost impossible. When I say the main ones, I mean the Chinese Panda, the Vienna Philharmonic, the American Eagle, the Australian Kangaroo, and the English Britannia, to name a few. If it is almost impossible to see or find a "Mexican Libertad Coin" where it shows that there is a wide supply with low demand, unless you travel to Mexico it is the only option to find some hard money or pay a very high commission for a lower quality coin like the Peruvian ones or if someone offers you some of the main ones, you will assume that it is not cheap. Something that I find difficult to understand having Brazil and Mexico so close, being the main extractors of the mineral, and having a demand much lower than the supply they have available.
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11 sats \ 3 replies \ @Satosora 10h
wow, why is china and india consuming so much?
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10 sats \ 0 replies \ @flat24 7h
IMO. They have a good savings culture, they have gold very present in their culture, and finally the West has always treated them as fools, and here they show that they do know that the ancient yellow has and holds value and the papers do not 💵 💶
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10 sats \ 0 replies \ @bitalion 9h
It is rather a cultural thing, in India it is used a lot in jewelry, it is a way to show social status, the more gold you have, the more relevance you have in those around you.
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10 sats \ 0 replies \ @0xbitcoiner OP 10h
Roughly speaking, for jewelry and store of value (CB's).
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0 sats \ 0 replies \ @ibarralizt 5h
India and China are the largest consumers of gold, but they have significant differences in their supply. India consumes 50 times more gold than it produces due to its jewelry industry, while China produces more than a third of the gold it demands. A chart compares the gold demand and production in 10 countries, based on data from the World Gold Council in 2023.
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0 sats \ 0 replies \ @0xbitcoiner OP 10h
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