The World’s Largest Gold Producing Countries
- March 29, 2022
- Posted by: Nancy
- Category: Education
Gold has been a symbol of wealth for centuries. People have used gold as a means of payment for various purposes throughout history, preserving its value and importance. Although this feature has lost its role today, gold and gold-producing maintains its critical position in economies. Its wealth measure, confidence element, or speculative aspect continues.
Technology and Gold
The financial system, which has developed with the gains of globalization and technology, allows investors to evaluate their savings with tools that they can access without physically owning their savings. This situation has not diminished the long-standing attractiveness of the precious metal. While electronic environments allow the opportunity to be bought and sold at instantaneous prices, it has also made the pricing of gold, which has become a ‘safe-haven’ among the favorite investment instruments, very sensitive. Because many parameters will be taken into account before the assets of the country are invested. The Gold Reserve of the Central Bank of the country is a kind of confidence criterion in that country.
In addition, the macroeconomic structure and stability of gold-producing countries have a significant impact on gold prices. In other words, Ceteris Paribus1 may hurt gold prices, as production cuts in a country that is a gold producer will cause a decrease in supply, or the gold stock of the Central Bank, which has a currency of a country where confidence in global markets is fragile, is at a reassuring level. can suppress exits from the currency.
Gold Producing and Countries
When we look at global gold production with this information, 10 countries met 62% of the total gold production in the world. The largest gold producer, China accounts for 14% of the total production with an annual production capacity of 458 tons.
In the cake showing the world’s gold production, Australia takes second place with a rate of 9% after China. Australia’s gold production growth reached nearly 300 million tonnes at the end of 2018. Russia, the world’s largest producer and exporter of many mines and minerals, took the third place. It surpassed the United States for the first time in 25 years. It reached 260 million tons in 2018 with a significant increase in gold production. According to the report published by the US Geological Survey, the earth science research institution of the USA, on gold production every year: The USA, which meets 8% of the world’s gold production, managed to rank high in the list with a production capacity of nearly 240 million tons with an increase of 9 percent in 2018.
When it comes to investment in a country’s currency, the reserves of the Central Bank create a kind of perception of economic confidence against financial speculations that may occur in that country’s currency. This perception is not wrong. However, the power of Central Banks to affect the value of the country’s currencies becomes indisputable. Here, too, the US Federal Reserve (FED) with the intervention power of Central Banks with an internationally accepted value, is the country with the largest gold reserve in the world with 8133 tons of gold reserves. Germany, which follows it, has a negligible gold stock of 3370 tons.
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