China is the country that buys the most gold. Next on the list of countries that consume the most gold is India. Weddings are the main reason for jewelry-related demand for gold in the United States. China consumes approximately 984 metric tons of gold per year.
It imports about two-thirds of the amount of gold you use. Gold is used for industry, investment and jewelry. Gold is available in China for all uses. In fact, some banks in China will sell gold coins on the OTC market.
India consumes approximately 849 metric tons of gold per year. This number is variable depending on the economy in general. Its gold mining industry is tiny, so almost all of its consumption is imported. The primary use of gold is for jewelry and other ornamental uses.
Gold is also considered a store of value. The list of the top countries in terms of gold production changes every year, but the countries listed most frequently are generally considered to be the largest gold producers in the world. It is important to be aware of political and economic developments in these countries, especially in those countries that are not large consumers of gold and that instead focus on exporting gold. India and China are still in the top two when it comes to buying gold jewelry, according to figures published in the latest Thomson Reuters GFMS Gold Survey report.
Even in the form of jewelry, gold is quoted based on commodity values, making it fairly easy to buy and sell gold chains and other jewelry without losing a significant amount on the sale. To better understand the breadth of the gold industry and its importance in the global economy, it is important to have a basic knowledge of the main countries that produce and consume gold.