When you look at the worldwide demand for gold, you will see that when compared t previous years, the West’s demand is falling, whilst demand is increasing in the East. Over the last five years, the world has produced around 2,800 tonnes of gold per a year. When you look at the demand for gold in Asia, the worldwide production is only just covering this demand. You find  that in most countries in Asia, families would typically invest in gold, rather than investing in stocks or keeping their money in banks. Looking at the current markets in Asia, there are three main reasons that Asia is so hungry for gold.

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A Popular Choice for Jewellery

Gold has been a popular metal to make jewellery from for thousands of years. With the population of Asia growing at an incredible rate, so are the amounts of people who are looking to buy gold jewellery to show off their wealth, or just to look nice. Out of all the gold that is mined annually, around 80% of this is turned into gold jewellery to satisfy demand. The burgeoning middle class in China are also a big factor in the demand for gold rising, with more people having money to invest and also spend on luxuries.

Seen as a Safe Investment

Gold has traditionally been seen as a safe investment for a long time, all over the world. Talk to a stock broker and they may say you do not get a good return on the investment that stocks and shares can bring, but it is generally a stable investment over a long period. You tend to see that investors will often turn their assets into gold in anticipation of an economic crisis, which also in turn raises the price. Gold does fluctuate in price, but if you a look at graphs over a period of ten years or more, you will see that there is a steady increase in value. Go to most homes all over Asia and you will see that they have gold locked away in their house somewhere. There might not be a lot of it, but it is most definitely a popular investment in Asia.

Gold for Technology

The technology sector is also a major reason for Asia’s demand for gold, with gold being used in many different products.

• Mobile Phones
• Tablet PC
• Computers
• Telephones
• Home Appliances

There are many products that use gold due to its electrical conductivity, as well as its resistance to corrosion. In most Smartphone’s, there is usually between $0.50 to $1.00 worth of gold in each unit, which comes as a surprise to a lot of people. As our demand for technology increases, so does our requirement for gold, which adds to the massive worldwide demand. One thing is for sure though; it doesn’t look like demand will be decreasing any time soon!