Gold in the Global Economy: Market, mining and modernisation
Gold has played a fundamental role in society since ancient times. Admired for its beauty and treasured for its economic value, gold’s unique attributes have been recognised for thousands of years.
Today, those attributes continue to define and differentiate gold. Prized by investors, cherished by consumers and deployed in a range of technological applications, gold is an asset like no other, contributing to cultural traditions, financial stability, wealth creation and industrial markets.
In recent years, recognition of gold’s unique characteristics has propelled annual consumption to record levels of almost 5,000 tonnes per annum, fuelled by demand from consumers, investors, central banks and industrial users. Around three-quarters of that demand is satisfied by newly mined gold, yet supply increases by little more than 1.5% annually, providing a favourable long-term backdrop for the market.
Supply growth is constrained for multiple reasons, not least because gold miners tend to operate in some of the most remote and challenging regions of the world. In spite of these tough operating conditions, responsible miners can make a real difference, contributing approximately US$60 billion annually to host economies, including taxes, employee wages, and payments to local communities and suppliers.
Nonetheless, producers, refiners and retailers of gold are under scrutiny like never before. Stakeholders are calling for more robust environmental, social and governance (ESG) processes and this has led to sustained and consistent progress.
This report analyses gold’s role in the global economy – from those who mine and refine it to those who cherish it, invest in it and make use of it. Analysing supply and demand trends across the globe, our report makes three central observations:
- Interest in gold is broad, deep and growing, fuelled by demand from sovereign states, investors, savers and consumers.
- Gold mining can deliver widespread social, economic and environmental benefits, when supported by advances in technology and new operational models.
- Challenges persist across the gold industry, but these present an opportunity to drive change through innovation and ensure that gold is a fit-for-the-future asset.
Evolution in demand
Economic, social and geopolitical trends have contributed to fundamental shifts in demand for gold. Across the globe, rising tensions and financial market uncertainties are fuelling interest among institutional investors and retail savers, supported by increased ease of access to physical gold and gold-backed funds. Among central banks, there has been sustained gold buying since the Global Financial Crisis, accelerating still further in recent years. In China and India, rising wealth has fostered retail appetite for bars, coins and jewellery, reinforcing gold’s cultural and financial significance across Asia. And in industry, gold’s durability, conductivity and malleability make it a core component of AI infrastructure and other advanced technologies.
Even as demand flows evolve across the globe, the supply chain is also undergoing unprecedented change.
Supply chain in the spotlight
Amid growing calls for tangible evidence of responsible practice along the value chain, gold miners are at the forefront of technological and operational innovations to reduce harmful emissions, drive efficiency, forge stronger partnerships with local communities and root out criminal activity.
Much has been achieved but challenges remain. Gold’s value as a trusted asset does not just depend on its intrinsic qualities but also on how it is produced, refined, sold and stored. Transparency, responsible sourcing and environmental performance have become critical considerations, defining gold’s legitimacy among regulators, responsible investors, lenders and consumers.
This creates a series of challenges for the gold industry, as it strives to deliver ESG change, while responding to a fast-moving regulatory environment.Innovation can provide many of the answers. But industry players are under growing pressure to ensure they are abreast of new developments and can adapt swiftly to stakeholder demands.
The opportunity is clear: gold that can prove its origin, integrity, and sustainability, will strengthen its position as a credible, resilient asset in a changing financial landscape. The long-term relevance of gold depends not just on being scarce — but on being trusted, transparent, and responsible.
Gold in the Global Economy: Market, mining and modernisation
This report makes four key points:
- The value of gold is recognised globally, evidenced by rising and widespread demand.
- The gold industry faces growing calls for change.
- Key players are already adapting their models and delivering on their obligations, capitalising on
technology and cross-industry learnings. - Now the entire industry must follow suit, adopting new processes, exploring new partnerships and driving transparency along the supply chain.
Gold plays a critical role in socioeconomic growth, financial stability and cultural traditions. Now more than ever, there is an opportunity to ensure gold’s global contribution is understood and appreciated.
The industry is being called upon to step up and act. Heeding those calls should usher in a new era for gold, built on trust, understanding and confidence in gold’s role as a force for good.
