Gold consumption by country and impact on exchange and futures prices for gold
The countries with the highest annual gold consumption have shown consistency over the past decade. According to the World Gold Council, India and China were the top gold consuming countries in 2010, and both countries have maintained this status in 2022 with consumption of 824.9 and 774 metric tons, respectively. China and India are followed by the US, Saudi Arabia, Germany, Turkey and Iran.
However, strict quarantine measures in China and the Covid outbreak in India have led to a temporary drop in consumer-level shopping. Demand for gold in China hit an all-time low since 2010 to 641 metric tons in 2020. Similarly, India's gold consumption has been hit during the pandemic, falling to 446 metric tons in 2020.
Although the countries with the highest consumption of gold in the world have been the same over the past few decades, there may be some differences when countries have either increased or reduced gold consumption. A significant reflection in these patterns appeared after the global economic crisis of 2009, after which central banks around the world began to increase their gold reserves.
The move to maintain and increase gold reserves was a change from the previous trend, with several international financial institutions and countries systematically selling their precious metal holdings - the most notable example of this being the United Kingdom's liquidation of a significant portion of its gold reserves. in the late 90s.
Which industry uses the most gold?
According to World Gold Council data on gold consumption by country, the jewelry industry uses the most gold. So much so that 63% (2,086 metric tons) of the world's total gold consumption by the industry is directed to the production of jewelry. The jewelry industry's preference for gold is based on the metal's resistance to tarnish, malleability, and symbolic associations with wealth.
Following the jewelry industry, gold bars and coins also rank first in the world in terms of gold consumption. In these forms, gold acts primarily as an insurance against economic instability and as a tool for preserving wealth.
How much gold is used per year worldwide?
International demand for gold in 2022 was 3,303 metric tons, signaling a resurgence from the pandemic in countries with the highest annual gold consumption. In 2020, total global gold consumption fell to 2,301 metric tons, the lowest level since 2010, due to the shutdown of the economy in most countries.
Major companies in the gold mining sector are Rio Tinto Group (NYSE:RIO), Barrick Gold Corporation (NYSE:GOLD) and Newmont Corporation (NYSE:NEM), among others. Rio Tinto Group (NYSE:RIO) is a London-based mining giant that explores, extracts and processes minerals. The main sources of minerals that Rio Tinto Group (NYSE:RIO) mines and processes are gold, diamonds and copper, among many others.
Similarly, Barrick Gold Corporation (NYSE: GOLD) is a mining company based in Toronto, Canada. Barrick Gold Corporation (NYSE:GOLD) explores and mines precious metals in 13 countries and specializes in high margin products.
The largest gold mining company is Newmont Corporation (NYSE:NEM), based in Denver, Colorado. The current market capitalization of Newmont Corporation (NYSE:NEM) is $33.84 billion.
We have broadly covered the top 10 gold stocks and MCG futures for portfolio diversification; give them a read to make wise financial decisions.
Who is the largest buyer of gold?
The largest buyers of gold are the central banks of the world's leading economies, such as the US Federal Reserve, the People's Bank of China and the Central Bank of India, which continue to maintain and increase their gold reserves. Central banks buy gold to diversify their reserves, manage risk, and promote economic stability. Net purchases by central banks reached 1,136 metric tons in 2022, valued at $70 billion, according to the World Gold Council.
International Monetary Fund (IMF) data show that the United States has the largest gold reserve in the world, at approximately 261.5 million troy ounces, followed by Germany and then the International Monetary Fund itself.
Let's move on to the list of countries with the highest gold consumption by year:
20 countries with the highest gold consumption by year
Our methodology
We have ranked the top 20 gold consuming countries by year based on their annual gold demand in ascending order. The World Gold Council report "Trends in Gold Demand for the Whole Year 2022" covers the annual demand for gold in countries. We used country demand for gold as a proxy for their gold consumption, as reliable data on gold use in individual countries was limited. We also discussed gold consumption per capita in some countries to estimate their average demand in the future. However, the per capita figures may vary slightly depending on the time they were calculated and the population of the indicated country used by the source.
To rank countries, we averaged their gold consumption over the three years to 2022.
Based on the findings of the World Gold Council's annual report, here are the 20 countries with the highest gold consumption by year:
20. Mexico
Average annual gold consumption: 14 metric tons
Gold consumption in 2022: 14.6 metric tons
Gold consumption in 2021: 14.1 metric tons
Gold consumption in 2020: 13.3 metric tons
According to our findings, based on the World Gold Council's report on countries with the highest annual gold consumption , Mexico's average annual gold consumption is 14 metric tons. Gold consumption per capita in Mexico was 0.11 grams. The main consumption of gold in Mexico is in the production of jewelry, which reached just over 13 metric tons in 2022, followed by 1.5 metric tons of gold bars and coins.
19. Kuwait
Average annual gold consumption: 16.16 metric tons
Gold consumption in 2022: 18.9 metric tons
Gold consumption in 2021: 16.6 metric tons
Gold consumption in 2020: 13 metric tons
Annual gold consumption in Kuwait is 16.16 metric tons, mainly due to the country's attachment to gold jewelry. This figure, impressive in itself, becomes even more significant when viewed on a per capita basis, as the country's per capita consumption of gold is 3.80 grams, one of the highest in the world.
18. Canada
Average annual gold consumption: 24.7 metric tons
Gold consumption in 2022: 27.5 metric tons
Gold consumption in 2021: 26 metric tons
Gold consumption in 2020: 20.8 metric tons
According to the World Gold Council, Canada's average gold consumption is 24.7 metric tons per year. In terms of per capita consumption, the average Canadian consumes 0.71 grams of gold annually. This reflects the integral role of gold in sectors such as jewelry, investment and technology, as well as the relative wealth of the country.
17. Australia
Average annual gold consumption: 28.86 metric tons
Gold consumption in 2022: 30.9 metric tons
Gold consumption in 2021: 28.7 metric tons
Gold consumption in 2020: 27 metric tons (estimated)
Australian gold consumption in 2022 reached an average of 28.86 metric tons per annum. According to World Gold Council data on gold consumption by country in 2023 , this figure corresponds to a per capita gold consumption of approximately 1.12 grams.
16. Egypt
Average annual gold consumption: 31.8 metric tons
Gold consumption in 2022: 38 metric tons
Gold consumption in 2021: 34.1 metric tons
Gold consumption in 2020: 23.3 metric tons
Despite the unstable economy and difficult geopolitical situation, the average annual consumption of gold in Egypt is 31.8 metric tons. The main reason for such a significant consumption of gold is the dependence of the population on gold bars as savings. In addition, the per capita consumption of gold in the country is approximately 0.36 grams, which indicates the cultural importance of gold in the social structure of the country.
15. United Kingdom
Average annual gold consumption: 33.3 metric tons
Gold consumption in 2022: 35.6 metric tons
Gold consumption in 2021: 34.8 metric tons
Gold consumption in 2020: 29.6 metric tons
The UK is among the countries with the highest annual gold consumption . Its average annual gold consumption is 33.3 metric tons. The country's per capita consumption is 0.53 grams, reflecting this trend at the individual level. Like other data on gold consumption by country in 2023, the main sectors of gold consumption in the UK are jewelry and gold bars/coins. Interestingly, the use of gold in the form of gold bars and coins is higher in the UK than in most other countries; in 2022, the country used 16.3 metric tons of gold to make bars, cookies and coins, among other things.
14. South Korea
Average annual gold consumption: 35.8 metric tons
Gold consumption in 2022: 32.4 metric tons
Gold consumption in 2021: 39.6 metric tons
Gold consumption in 2020: 35.4 metric tons
South Korea has experienced a significant increase in gold consumption and currently averages 35.8 metric tons per year. Although the country's gold consumption in 2022 was slightly lower than in 2021 and 2020, the average has not changed. South Korea's demand for gold was 32.4 metric tons in 2022, up from 39.6 in 2021, according to the World Gold Council, but it is still among the top gold consuming countries .
13. United Arab Emirates
Average annual gold consumption: 39.8 metric tons
Gold consumption in 2022: 51.3 metric tons
Gold consumption in 2021: 41.6 metric tons
Gold consumption in 2020: 26.7 metric tons
Another major consumer of gold in the Middle East is the United Arab Emirates, where the average gold consumption is 39.8 metric tons. But the more important aspect here is that the UAE has the second highest per capita gold consumption in the world , which reaches 5.24 grams, just behind Switzerland. This impressive use of gold indicates the strong purchasing power of the UAE and the importance of the gold market.
12. Switzerland
Average annual gold consumption: 43.4 metric tons
Gold consumption in 2022: 43.7 metric tons
Gold consumption in 2021: 43.8 metric tons
Gold consumption in 2020: 42.9 metric tons
The average consumption of gold in Switzerland is 43.4 metric tons per year, driven by the stability of the country's financial and jewelry sectors, which are heavily dependent on gold. Moreover, the country has the highest per capita gold consumption in the world, reaching 5.58 grams, thanks to its rich economy.
11. Indonesia
Average annual gold consumption: 44.7 metric tons
Gold consumption in 2022: 49.7 metric tons
Gold consumption in 2021: 46.8 metric tons
Gold consumption in 2020: 37.6 metric tons
Average gold consumption in Indonesia has reached 44.7 metric tons per year, with gold jewelry and bars/coins accounting for the majority of this consumption. In addition, the per capita consumption of gold in the country is currently 0.18 grams, indicating the distribution of the metal among the population.
10. Vietnam
Average annual gold consumption: 47.3 metric tons
Gold consumption in 2022: 59.1 metric tons
Gold consumption in 2021: 43 metric tons
Gold consumption in 2020: 39.8 metric tons
According to a World Gold Council report, Vietnam's annual gold consumption is approximately 47.3 metric tons. Although the country's economy is not as strong as other countries with the highest consumption of gold in the world, people's dependence on gold for hedging and jewelry brings its per capita consumption to 0.59 grams.
9. Russia
Average annual gold consumption: 47.4 metric tons
Gold consumption in 2022: 60.7 metric tons
Gold consumption in 2021: 46.8 metric tons
Gold consumption in 2020: 34.8 metric tons
Russia's annual gold consumption averages 47.4 metric tons, based on the country's heavy dependence on the precious metal. Moreover, gold consumption per capita in Russia is 0.42 grams, which indicates the complex role of gold in the socio-economic structure of the country.
8. Thailand
Average annual gold consumption: 52 metric tons
Gold consumption in 2022: 37.9 metric tons
Gold consumption in 2021: 36.7 metric tons
Gold consumption in 2020: 81.5 metric tons
Thailand's average annual consumption is 52 metric tons, which corresponds to a per capita gold consumption of 0.54 grams. The country's per capita consumption is indicative of a healthy appetite for gold compared to other countries. Factors influencing this level of consumption include the role of gold in Thai traditions, its status as a symbol of wealth and an investment vehicle.
7. Iran
Average annual gold consumption: 59.9 metric tons
Gold consumption in 2022: 71.7 metric tons
Gold consumption in 2021: 51.8 metric tons
Gold consumption in 2020: 56.3 metric tons
The average consumption of the precious metal in Iran reached 59.9 metric tons in 2022. This statistic is further supported by a per capita consumption rate of 0.84 grams. Regardless of the changing political dynamics, the country's confidence in gold as a safe haven has remained stable over the years.
6. Türkiye
Average annual gold consumption: 121.2 metric tons
Gold consumption in 2022: 121.5 metric tons
Gold consumption in 2021: 95.3 metric tons
Gold consumption in 2020: 147 metric tons
The average annual consumption of gold in Turkey is 121.2 metric tons and since most of it is imported, this reflects the growing demand for gold domestically. In addition, per capita gold consumption in Turkey is 1.42 grams.
5. Germany
Average annual gold consumption: 178.5 metric tons
Gold consumption in 2022: 196.4 metric tons
Gold consumption in 2021: 173.1 metric tons
Gold consumption in 2020: 166 metric tons
Annual gold consumption in Germany averages 178.5 metric tons, which corresponds to 2.36 grams per capita. As Europe's largest economy, Germany's increased demand for gold is contributing to the global gold market and proving that the metal is a longstanding asset worldwide.
4. Saudi Arabia
Average annual gold consumption: 220 metric tons
Gold consumption in 2022: 268.2 metric tons
Gold consumption in 2021: 219.9 metric tons
Gold consumption in 2020: 172 metric tons
The country with the highest consumption of gold in the Middle East is Saudi Arabia, which averages 220 metric tons per year. This varied use of gold also confirms his socio-cultural penchant for gold as it serves as an investment and a status symbol.
3. USA
Average annual gold consumption: 235 metric tons
Gold consumption in 2022: 256 metric tons
Gold consumption in 2021: 264 metric tons
Gold consumption in 2020: 187 metric tons
According to the World Gold Council, by 2023 the US will be the third largest consumer of gold in the world, with an average demand for the metal of approximately 235 metric tons. In addition, the per capita consumption of gold in the country is 0.77 grams, and it is used mainly for jewelry making and as an investment.
2. India
Average annual gold consumption: 672.4 metric tons
Gold consumption in 2022: 774 metric tons
Gold consumption in 2021: 797.3 metric tons
Gold consumption in 2020: 446 metric tons
According to the World Gold Council, India's gold consumption is currently 672.4 metric tons per annum. The nation has a long cultural, religious and economic attachment to gold, and also prefers to use it to protect against economic uncertainty. On an individual level, the per capita consumption of gold in the country is only 0.55 grams due to the densely populated India.
1. China
Average annual gold consumption: 819.86 metric tons
Gold consumption in 2022: 824.9 metric tons
Gold consumption in 2021: 993.7 metric tons
Gold consumption in 2020: 641.3 metric tons
China ranks first among the countries with the highest annual gold consumption , averaging 819.86 metric tons. In addition, China's per capita gold consumption is roughly 0.56 grams, a testament to the growing wealth of the country's vast middle class.