The history of gold can be traced as far back as 2600BC when the ancient Egyptians considered it a divine and indestructible metal. It was the ancient Greeks who were the first to use gold as a financial commodity.
Today, gold is treated primarily as a monetary asset and partly as a commodity
London is the world’s biggest clearing house.
Mumbai is under India's liberalised gold regime.
New York is the home of gold futures trading.
Zurich is a physical turntable.
Istanbul, Dubai, Singapore, and Hong Kong are doorways to important consuming regions.
Tokyo, where TOCOM sets the mood of Japan.
Mining - The production of gold from mines has averaged 2,525 tonnes per year between 2002 and 2007. Gold is mined on every continent, except Antarctica and there are about 400 mines in operation across the globe.
Scrap - The supply of gold from mines is fairly inelastic. However, the supply of recycled gold from scrap can be easily adjusted and ensures an easily traded supply. This helps to stabilise the price of gold.
Central Banks - 110 central banks and international organisations hold about 29,000 tonnes of gold as reserve assets. This is 20 percent of the above ground stock of gold. Central banks on the whole have been net sellers of gold and sold 500 tonnes in 2007.
More than half of the world's demand for gold arises from just five countries - India, Italy, Turkey, USA and China. Demand is driven by a variety of factors - cultural, socio-economic and financial.
The demand for gold comes from 3 main sources:
Jewellery - Three quarters of the demand for gold can be attributed to the jewellery industry. Standing at US$59.4 billion in 2006, the retail market for gold jewellery in the US is the largest in terms of value. The demand for gold jewellery in India accounted for 25 percent of world demand in 2007, making it the largest market in volume terms.
Gold as a Tool for Investment - Between 2003 and 2007, investment demand for gold grew by 280 percent in value terms and net inflows in 2007 stood at US$15 billion. This increased investment demand for gold has been followed by growth in the number of investment instruments that are available to individuals and institutional investors.
Industrial Demand - Industrial and dental uses of gold added up to over 425 tonnes, accounting for 13 percent of the total demand. The use of gold in manufacturing electrical components accounts for a large part of its industrial use.
Factors Influencing the Market
Above ground supply of gold from central bank's sale, reclaimed scrap, and official gold loans.
Hedging interest of producers/miners.
World macroeconomic factors such as the US Dollar and interest rate, and economic events.
Commodity-specific events such as the construction of new production facilities or processes, unexpected mine or plant closures, or industry restructuring, all affect metal prices.
In India, gold demand is also determined to a large extent by its price level and volatility.
Men's high value comes from the appearance of rolex replica uk high demand for their own management. They have a breitling replica thin dress, a strip of flesh, seemingly casual but actually in the details reflect the high quality of the omega replica dress. With some exquisite accessories to decorate, whether or tie clip are carefully considered cufflinks on the election, is a piece of men's replica rolex watches sublimation of the whole shape, reflecting the unique personality and high taste.