Gold

Gold Overview

Gold has historically been one of the most valuable and stable assets in the world. Its unique physical and chemical properties make it irreplaceable in the financial sector, industry, and medicine. The prices of gold and mining volumes have changed over the last 50 years according to economic cycles, geopolitical crises, and technological innovations.

Gold Prices and Mining Volumes Worldwide in the Last 50 Years (1974–2024)

Price Development – The price of gold has been strongly influenced by economic crises, geopolitical conflicts, and inflation over the last 50 years.

1970s–1980s

• In 1971, the US ended the gold standard, causing the price of gold to rise rapidly.
• By 1980, the price of gold reached 850 USD per ounce due to inflation and oil crises.
• After that, the price stabilized at 300–500 USD per ounce.

1990s–2000s

• In the 1990s, gold remained relatively stable but briefly dropped to 250 USD per ounce.
• In 2001, a new rise began as investors sought safe assets.
• The 2008 financial crisis pushed the price of gold to 1900 USD per ounce.

2010s–2024

• In 2011, gold reached a record 1920 USD per ounce due to the European debt crisis.
• In 2015, the price dropped to 1050 USD per ounce, but it recovered.
• During the COVID-19 pandemic, the price rose to 2070 USD per ounce (August 2020).

Mining Volumes Worldwide in the Last 50 Years

• In the 1970s, global gold mining was about 1200 tons per year.
• In the 1990s, mining increased to 2200 tons per year as technology improved.
• In the 2000s, production surpassed 3000 tons per year, primarily controlled by China, Australia, and Russia.
• By 2020, more than 3500 tons of gold were produced annually worldwide, making up about 2% of global gold reserves each year.

Gold Prices and Mining in the Last 10 Years Worldwide (2014–2024)

Price Development (2014–2024)

• 2014–2018: The price of gold was between 1150–1350 USD per ounce as the US Federal Reserve raised interest rates and the economy stabilized.
• 2019–2022: Gold rose to 1600–2070 USD per ounce due to the pandemic and economic uncertainty.
• 2022–2024: The price of gold has remained between 1850–2100 USD per ounce, influenced by inflation and geopolitical conflicts.

Mining Volumes Worldwide (2014–2024)

• 2014–2018: Average production was 3300–3500 tons per year.
• 2019–2022: COVID-19 affected mining, but production remained between 3400–3550 tons per year.
• 2023–2024: Expected production is 3600–3700 tons per year, as demand has grown.

Gold Price and Mining Forecast for the Next 10 Years (2025–2035)

Forecasted Prices Worldwide (2025–2035)

• 2025–2030: The price of gold could rise to 2500–3500 USD per ounce as inflation and geopolitical tensions increase demand.
• 2030–2035: The price could reach 4000–5000 USD per ounce, especially if central banks continue to increase their gold reserves.

Mining Volumes Worldwide (2025–2035)

• 2025–2030: Production could reach 3700–4000 tons per year, but opening new mines may be difficult.
• 2030–2035: There may be a decline in production as the largest deposits start to deplete, which could increase the share of recycled gold in the market.

How Does Inflation and Increased Consumption Affect the Price of Gold?

Impact of Inflation

• Gold has historically been an inflation-resistant investment. When inflation rises, the price of gold also increases, as investors seek assets that hold their value.
• On average, the price of gold has risen by 5–10% per year during periods of inflation.

Increased Consumption

• Central Bank Purchases: Central banks of China, Russia, and India have increased their gold reserves, supporting the price.
• Technology and Industry: The electronics industry and green technology are increasingly using gold.
• Jewelry and Investment Gold: Consumer demand in India and China influences the market, especially during weddings and festivals.

Gold Uses

1. Financial Sector and Investments (50%)

• Gold Bars and Coins: Central banks and investors use gold to hedge against inflation and crises.
• ETFs and Derivatives: Gold futures and exchange-traded funds (ETFs) influence liquidity and demand for gold.

2. Jewelry (35%)

• India and China account for over 60% of the global gold jewelry market, where gold is used both culturally and as an investment.
• The purity and color of gold affect the quality and prices of jewelry.

3. Industry and Technology (10%)

• Electronics: Gold is indispensable in high-tech devices such as smartphones, computers, and satellites.
• Green Technology: Gold is used in hydrogen fuel cells, advanced solar panels, and nanotechnology.

4. Medicine and Research (5%)

• Dental Prosthetics and Surgical Instruments: Gold’s biological stability makes it useful in medicine.
• Cancer Therapy: Gold nanoparticles are used in cancer treatments and diagnostics.

Summary
The dynamics of the gold market in recent decades have been strongly influenced by economic cycles and geopolitical tensions. While gold was once primarily an investment and jewelry metal, its importance has grown in the industrial and technological sectors. Inflation, central bank policies, and developments in green technology will affect gold prices and demand in the future.
Over the next decade, the price of gold may grow significantly, especially if inflation remains high and new technological developments increase demand for gold.

(Note: This is an opinion and should not be treated as a statement of fact.)