What factors affect the value of gold?
GOLD INVESTMENT QUESTIONS ANSWERED
How much gold is produced each year?
Gold, the malleable yellow metal found in jewelry, technology, dentistry, and in bars held by central banks or traded by investors, is a limited natural resource in high demand. 2,500 to 3,000 tons of new gold is mined each year, which makes up 75% of the annual gold supply. Recycled gold contributes the remaining 25%.
Where is gold mined?
Gold mining takes place on every continent except Antarctica, but the top global gold-producing countries are China, Russia, Australia, the United States, and Canada.
What is gold used for?
Just under half of the gold mined today is made into jewelry. The global demand for gold comes from diverse segments of the economy and is affected by macro-economic drivers as much as by socio-cultural factors or geo-political forces. The gold market is said to be self-balancing, which contributes to gold’s desirability as an investment asset.
What is the outlook for sustainably produced gold?
Since the 1970s, the amount of gold purchased each year has grown by 200% and gold markets continue to flourish – especially the market for gold that is demonstrably produced with minimal negative impacts on people and the environment. That makes responsible, efficient gold mining in a pro-mining jurisdiction a worthwhile investment.
15 Year Change (AS OF Nov 15, 2021)
|USA||Gold in USD||201.5%|
|Europe||Gold in Euros||201.5%|
|United Kingdom||Gold in Pound Sterling||201.5%|
|Australia||Gold in AUD||201.5%|
|Switzerland||Gold in Swiss franc||201.5%|
|South Africa||Gold in Rand||201.5%|
MINING Gold IN South Dakota
Gold is a great way to diversify a portfolio due to its low correlation to most other asset classes including equities, bonds and the U.S. dollar. Unlike other commodities, gold tends to retain its value during recessionary and deflationary periods. Gold is also a historic safe haven, acting as a hedge against domestic currency depreciation as well as falls in equity and credit markets.
Gold’s performance historically and over the last few decades vindicates its status as a valuable diversifier, surging relative to other investment classes. We believe it will continue to do so because gold is more than a mere commodity, it is a currency.