People form all over the world use and own gold. In particular, in 2005, Asia, the Middle Easy and India accounted for 70% of the world demand. This if mostly because of the culture and customs of the consumers of such nations. Gold is used in many forms, mostly the forms we know are Jewelry, investment and industrial.
Over a third of the usage of gold is for Jewelry, since the discovery of gold, it has been used as 3000 years before Jesus Christ was born. Only in the year of 2006, gold was bought in the form of Jewelry in the value of $44,000,000,000 dollars. The United states if the largest producer of Jewelry and India is the largest consumer (over 22%) in 2006. In India gold usage is large because of the cultural and religious requirements/traditions. Unlike the past, men are starting to love gold more than men (my humble opinion :)).
Gold investment increased over 300% over the past 5 years. Gold investment is increasing rapidly. In 2006 alone, gold investment amounted to 13,000,000,000 dollars. Stable prices and growing demands are just some factors which many people are starting to invest in Gold.
Yes it is true, industrial and dental usage amounted to over 400 tonnes in only 5 years (02-06), or 12% of total usage yearly. Gold's high thermal and electrical conductivity, and its outstanding resistance to corrosion is some of the many reasons why it is used in many industrial fields.
Gold Supply:
Gold is extracted and produced by the mining corporations in all contents except for Antarctica (mining in Antarctica is illegal). Recent figures shows that there are over 400 mining operation all over the world. Gold mining has been stable for the last five years at 2,500 tonnes a year. The only time new mines are started is just to replace dead mines or mines that have went out of operation. This will help the price of gold become more stable. The average time a mine comes into stream is estimated to be over 10 years.
Recycled gold is a very important source of supply for gold. With an average yearly contribution of 23% to the total yearly usage, it is very important and efficient for gold to be melted down, refined and reused.
Central banks are another important source of suppliers. Governments hold an average of 10% of their official reserves in gold. National organization, totaling to 110, hold over a fifth of gold, 31,000 tonnes, for reserve.
Gold Productions:
Just like other natural resources, gold is stored in what is called ore. When finding the ore, the ore body is mined out and transported to the plants for processing and refinery. Refineries are usually built near the mines, the largest mine is in Germiston, South Africa (Rand Refinery). In terms of output, the largest is Salt Lake City, US (Johnson Matthey refinery). Refineries usually sell the gold to bullion dealers, who in turn sell it to investors and/or jewelers.