Gold mining has been a major industry around the world for several hundred centuries now. Gold was among the first metals to be mined, and though it is relatively scarce, it occurs in many different kinds of rocks and in different geological environments. As a result, in the current era, it is mined on every continent, including Antarctica.
A major milestone in the history of gold production came around 1850 with the discovery of gold at Sutter’s Mill in California, which gave way to the gold rush with hundreds of mining camps springing up as newer deposits were discovered. By 1905, annual gold production in the United States alone exceeded four million troy ounces.
The use of gold as currency began as early as 500 BC. However, its use as an investment class worldwide began after the 1970s when the U.S.A. made it legal to hold and trade in physical gold. Investors today invest in gold to diversify their portfolio, and gold acts as a hedge against inflation since its price rises in times of economic or political instability when people turn to tangible assets for storing their wealth. In 2009, prices of gold achieved a historic high on the back of the financial crisis of 2008.
In recent times, with the advent of digitalisation, the popularity of gold as an investment class has led to the creation of digital gold, which allows for buying and selling of gold online. Digital gold, available on Finserv MARKETS, allows for gold to be traded online, allowing the gold purchased to be redeemed in its physical form as well. Digital gold is especially helpful for investors who do not wish to spend money on storage of the gold, which is an expensive proposition owing to the risks of burglary and theft that accompany it. The gold purchased on Finserv MARKETS can be stored in an online account, and when you wish to redeem it, you can choose to redeem it as either bars or coins which is how it will be delivered to you.
Gold is one of the rarest elements found on the Earth’s surface, and abundance of metals in the Earth’s crust is measured in parts per million (ppm). Gold is the rarest with a ppm of 0.004ppm, while platinum has a ppm of 0.005 and that of silver is 0.075 ppm. However, the production of gold continues unabated. South Africa used to be the largest producer of gold until 2006, but since then several countries have surpassed it. While India is one of the largest importers of the metal in the world, continue reading to learn about the largest producers of gold.
- In 2017, China was the largest producer of gold in the world, with a production of 440 metric tons. The country also has a reserve of 2,000 metric tons.
- Australia contributed 300 metric tons of production to the global total of 3,150 metric tons of gold produced in 2017. The country had the largest reserves of gold in the same year, amounting to 9,800 metric tons.
- Russia was the third largest producer of gold in 2017, with a total annual production of 255 metric tons. The country also had reserves of 5,500 metric tons of gold in 2017.
- The U.S.A. produced the fourth largest share of gold in the world in 2017, with a total annual production of 245 metric tons. The U.S.A. held onto gold reserves amounting to 3,000 metric tons in the same year.
- In 2017, Canada became the fifth largest producer of gold in the world, with a total annual production of 180 metric tons. The country had reserves amounting to 2,200 metric tons in the same year.
India is not included even among the top 10 producers of gold, yet demand from India has a huge impact on gold prices worldwide. India is the largest importer of gold in the world, with demand from the jewellery industry driving the market. In 2017, India imported about 855 tonnes of gold to cater to the local demand. Indian festivals see an upsurge in sales of gold jewellery, which is one of the most popular asset classes within its citizens.
As a result, digital gold has emerged to cater to the demand for gold. To invest in gold, it is no longer necessary to visit your local jeweller and instruct them on designing and making the jewellery according to your specifications. With Digital Gold, available on Finserv MARKETS, you can simply invest in gold online, save costs on storage and get it transformed into physical gold only when you need it.
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