Gold Demanding Industries:
1. Jewelry needs
Gold jewellery is the largest source of annual gold demand in every industry. That number has declined in recent decades, but still accounts for around 50% of total gold demand.
India and China are by far the largest jewellery markets, together accounting for more than 50% of the global total. Asian and Middle Eastern markets are dominated by demand for purer, higher carat gold.
2. Investment
Gold has unique properties as an asset class. Our analysis shows that a modest allocation to gold can be shown to protect and enhance portfolio performance, reduce volatility and minimize losses during market shocks.
Investors of all kinds have come to embrace gold as a reliable, tangible, long-term store of value that moves independently of other assets.
3. Central Bank Demand
Gold plays an important role in global central bank reserves, and they are significant holders of gold. The 2008 financial crisis prompted a shift in central bank action towards gold, prompting a reassessment of its role and relevance in reserve asset management. Emerging market central banks have increased official gold purchases, while European banks have halted sales, and the industry is now a significant source of annual demand for gold.
4. Technology
Gold is used as an industrial metal in a wide range of applications, but demand is driven by the electronics industry, which accounts for about 80% of gold used in technology. This metal is ubiquitous in most consumer electronics and automotive applications, and its combination of chemical and physical properties make it irreplaceable in many high-end devices. Electrification trends are supporting the industry’s demand for gold, with most types of semiconductor chips using metal as a coating, or in the form of fine bond wires.
Reminder: The number of initial jobless claims was less than expected, other US economic data performed poorly, and the dollar fell and non-US currencies rose. For specific operations, please pay attention to the https://reelfinancial.com/ . The market is changing rapidly, investment needs to be cautious, and the operation strategy is for reference only.