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Gold Part III: Uses and Demand

GOLD VISUAL CAPITALIST A FOUR PART SERIES HISTORY OF GOLD MINING & SUPPLY USES & DEMAND AS AN INVESTMENT THE GLOBAL GOLD MARKET CAN BE DIVIDED INTO THREE DISTINCT CATEGORIES: 40% 50% JEWELRY INVESTMENT 10% GOLD IN TECHNOLOGY GOLD'S PROPERTIES MAKE IT A HIGHLY VERSATILE METAL GOLD'S MOST IMPORTANT PROPERTY FOR TECHNOLOGY USE IS ITS RESISTANCE TO CORROSION AND TARNISH. WHILE SILVER AND COPPER ARE BETTER CONDUCTORS, GOLD IS BY FAR THE MOST RELIABLE AND LONG-LASTING. GOLD IS OPTIMAL IN TELECOMMUNICATIONS, COMPUTERS, DEFENSE SYSTEMS, MEDICAL EQUIPMENT, AND OTHER MISSION-CRITICAL TECHNOLOGY. THESE HAVE GOLD IN THEM. THESE? NOT LIKELY. GOLD COATINGS PROTECT THE $1.5 BILLION HUBBLE TELESCOPE AND ITS ELECTRICAL CONNECTIONS FROM CORROSION. 41 KG OF GOLD WAS USED ON U.S. COLUMBIA SPACE SHUTTLE AND GOLD ALSO PROTECTS ASTRONAUTS FROM RADIATION. THIN-FILM APPLICATIONS CIRCUIT BOARDS ELECTRICAL CONTACTS NASA ENERGY EFFICIENCY NANOTECHNOLOGY GOLD'S UNIQUE OPTICAL PROPERTIES ALLOWS IT TO BE USED ON A NANOSCALE TO DETECT PREGNANCY, PROGESSION OF HIV, AND SALMONELLA. ROYAL BANK PLAZA BUILDING TORONTO A THIN COATING OF GOLD GLAZING IN WINDOWS PROVIDES EXCELLENT REFLECTION OF HEAT RA- DIATION, KEEPING BUILDINGS COOL IN SUMMER AND WARM IN WINTER. WHEN ON A NANOSCALE, GOLD ACTU- ALLY CHANGES COLOUR TO DEEP CRIMSON RED OR LIGHT BLUE. THIS IS BECAUSE TINY PARTICLES OF GOLD ALL 14,000 WINDOWS ARE COATED IN 70KGS OF PURE GOLD. INTERACT DIFFERENTLY WITH LIGHT. POLLUTION THAT'S WORTH $3,600,000! GOLD IS USED AROUND THE WORLD IN CATALYTIC CONVERTORS IN CARS, TRUCKS, AND HEAVY DUTY VEHICLES. CONTROL GOLD IN JEWELRY ANCIENT GOLD JEWELRY DATES BACK TO 6,000 YEARS AGO, AND HAS BEEN USED THROUGHOUT HISTORY TO SYMBOLIZE POWER, WEALTH, AND LOVE. PURITY OF GOLD JEWELRY IS MEASURED IN KARATS. OK 6K 12K 16K 24K 0% 25% 50% 75% 100% GOLD HUES BECAUSE PURE GOLD IS VERY SOFT, IT IS ALLOYED WITH OTHER METALS. HERE ARE SOME TRADITIONAL HUES THAT CAN BE CREATED USING SILVER AND COPPER. 22K COPPER (CU) 91.67% GOLD 5% SILVER 2% COPPER 1.33% ZINC GOLD (AU) 12K 6K YELLOW GOLD 75% RED GOLD (18K) 18K 75% GOLD 25% COPPER 50% PINK GOLD (18K) 25% 75% GOLD 20% COPPER 5% SILVER 50% 25% 75% SILVER (AG) GOLD OVERALL DEMAND JEWELRY TECHNOLOGY INVESTMENT TOTAL GOLD DEMAND: 3,374 TONNES OVER THE LAST 9 YEARS, GOLD PURCHASES FOR 2002 INVESTMENTS HAVE INCREASED A HEFTY 2003 366% 2004 TYPES OF INVESTMENTS BULLION 2005 COINS 2006 AU-V EQUITIES 2007 ETPS AU AU AU EXCHANGE TRADED PRODUCTS 2008 LEARN MORE ABOUT GOLD AS AN INVESTMENT IN PART 4 OF THIS SERIES. 2009 2010 2011 21% TOTAL GOLD DEMAND: 4,067 TONNES INCREASE CHINA VS INDIA GRAMS OF NEW GOLD JEWELRY BOUGHT PER CAPITA 0.5 INDIA AND CHINA, THE TWO MOST POPULOUS COUNTRIES IN THE WORLD, TOGETHER REPRE- SENT OVER HALF OF THE WORLD'S GLOBAL GOLD DEMAND. 0.4 0.3 0.2 0.1 0.0 INDIANS AND CHINESE *: BUY MORE GOLD WORLD AVG. JEWELRY PER PERSON. PERCENTAGE OF INCOME SPENT ON GOLD JEWELRY 2.5% 2.0% AND INDIANS, DESPITE EARNING LESS MONEY THAN CHINESE OR AMERICANS, IN PARTICULAR PRIZE GOLD, SPENDING 50X MORE OF THEIR ANNUAL INCOME ON GOLD THAN THE AVERAGE AMERICAN. 1.5% 1.0% 0.5% 0.0% THE DIFFERENCE LIES IN CULTURE AND ECONOMIC GROWTH: IN INDIA GOLD IS SYNONYMOUS WITH WEALTH "NO GOLD, NO WEDDING" IS A COMMON PHRASE IN INDIA. IN INDIAN WEDDINGS THE GOLD THE BRIDE BRINGS IN SHOW HER FAMILY'S STATUS AND WEALTH AND FORMS PART OF THE DOWRY GIVEN TO THE BRIDE. GOLD ALSO HAS A RICH HISTORY IN CHINESE CULTURE, BUT THE RISE OF DEMAND OF GOLD JEWELRY HAS MORE TO DO WITH INCREASED WEALTH PER PERSON. 10 MILLION WEDDINGS TAKE PLACE IN INDIA EACH YEAR DIWALI TODAY, CHINA IS SECOND ONLY TO THE U.S. WITH A MIDDLE CLASS POPULATION OF 157 MILLION PEOPLE DHANTERAS IS THE FIRST DAY OF THE FIVE DAY DIWALI FESTIVAL IN NORTH INDIA. HINDUS CONSIDER BUYING GOLD TO BRING GOOD LUCK ON THIS DAY. ABOUT 10 TONNES OF GOLD ARE SOLD ON THIS DAY ALONE IN INDIA. INCREDIBLY, AS OF 2012, THERE ARE OVER DESPITE PRODUCING LESS THAN 1% OF THE WORLD'S GOLD, INDIA MAKES UP ABOUT 30% OF GLOBAL DEMAND. 1 MILLION MILLIONAIRES LIVING IN CHINA, STRONG ECONOMIC GROWTH IN CHINA HAS LED TO BIG INCREASES IN GOLD DEMAND FROM YEAR TO YEAR. 900 AS OF Q4 IN 2011, CHINA'S GOLD DEMAND HAS ACTUALLY SURPASSED 800 700 INDIA! 600 500 – 400 – 300 200 100 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (Q1 & 2) WHO IS BUYING GOLD JEWELRY? (PERCENTAGE OF GLOBAL CONSUMER DEMAND) TURKEY RUSSIA 3% 4% 27% CHINA 1% UK 1% 1% I 70 ITALY JAPAN 6% USA 1% 3% INDONESIA 1% EGYPT UAE 28% INDIA 3% SAUDI ARABIA FACT IF MAINLAND CHINA'S PER CAPITA GOLD JEWELRY CONSUMPTION INCREASED TO MATCH THAT OF HONG KONG'S, GLOBAL GOLD DEMAND WOULD DOUBLE OVERNIGHT FROM ROUGHLY 4,000 TONNES TO 8,000 TONNES! CONCLUSION GOLD HAS BEEN USED AS JEWELRY SINCE ANCIENT TIMES AND IS STILL IRREPLACEABLE IN MANY CULTURES. GOLD ALSO FUELS TECHNOLOGY IN IMPORTANT ELECTRONICS AND OTHER USES. HOWEVER, PERHAPS OUR MOST IMPORTANT USE OF GOLD IS AS AN INVESTMENT. LEARN MORE: PART 4 - AS AN INVESTMENT Visual Capitalist is committed to providing independently researched content for educational purposes. Thank you to Goldcorp for covering the production costs of this project. Learn more at www.goldcorp.com EGOLDCORP TSX: G NYSE: GG VISUAL CAPITALIST Educating a new generation of investors on resource investing and managment VISUAL CAPITALIST www.visualcapitalist.com Top 5 Sources: World Gold Council: www.gold.org Wikipedia - Gold: http://en.wikipedia.org/wiki/Gold Gold Alloys: http://chemistry.about.com/od/jewelrychemistry/a/goldalloys.htm Royal Bank Plaza: http://en.wikipedia.org/wiki/Royal_Bank_Plaza The Daily Bell: http://www.thedailybell.com/printerVersion.cfm?id%=3657 For a complete list of sources, please visit: visualcapitalist.com/sources GOLD DEMEND IN TONNES to

Gold Part III: Uses and Demand

shared by visualcap on Sep 06
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In the past two parts of this infographic series, we saw its rich history and also how mining and supply works. Here we look at how gold is used across the globe. Generally speaking, half of all gold...

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