Have you ever wondered how much total gold exists in the world? Gold is one of the most precious metals in the world, valued for its beauty, durability, and rarity.
But how much of it is actually available, and where does it come from? In this article, we will answer these questions and more, as we take a look at the global gold supply, demand, and production.
Don’t leave without finding out. Let’s get started!
Table of contents
- How is Gold Measured?
- How Much Gold Has Been Mined?
- How Much Gold is Left in the World to Mine?
- Which Countries Have the Largest Gold Reserves?
- Which Countries Produce the Most Gold?
- Which are the Largest Gold Mines in the World?
- How is Gold Demand and Supply Balanced?
- Why is Gold Valuable?
- How to Invest in Gold?
- FAQs
- Conclusion
- References
- Recommendations
How is Gold Measured?
Before we dive into the numbers, let’s first understand how gold is measured. Gold is usually measured in tonnes, which are metric units equivalent to 1,000 kilograms or 2,204.6 pounds.
One tonne of gold is equal to 32,150.7 troy ounces, which are the standard units for measuring precious metals. A troy ounce is slightly heavier than a regular ounce and is worth about $1,756.
See also: How Much Are Aluminum Cans Worth | Full Guide To A New Gold
How Much Gold Has Been Mined?
According to the World Gold Council, the best estimates currently available suggest that around 208,874 tonnes of gold has been mined throughout history, of which around two-thirds have been mined since 1950.
And since gold is virtually indestructible, this means that almost all of this metal is still around in one form or another. If every single ounce of this gold were placed next to each other, the resulting cube of pure gold would only measure around 22 meters on each side.
How Much Gold is Left in the World to Mine?
The amount of gold in the world that is left to mine depends on how we define the term reserves. Reserves are the gold that is economical to mine at the current gold price, while resources are the gold that will potentially become economical to mine after further investigation, or at a higher price level.
Currently, the below-ground stock of gold reserves is currently estimated to be around 54,000 tonnes, according to the US Geological Survey.
To put that in perspective, around 190,000 tonnes of gold has been mined in total, although estimates do vary. Based on these rough figures, there is about 20% still to be mined.
See also: Organo Gold Reviews: Benefits & How It Works
Which Countries Have the Largest Gold Reserves?
Gold reserves are the amount of gold that a country’s central bank holds to support the value of its currency and to meet its financial obligations. Gold reserves are also a sign of economic strength and stability, as they can be used to hedge against inflation, currency devaluation, and geopolitical risks. According to the latest data from the World Gold Council, the top five countries with the largest gold reserves in the world are:
- United States: The United States has the largest gold reserves in the world, with 8,133.5 tonnes, which account for 76% of its total foreign reserves. Most of the U.S. gold is stored in Fort Knox, Kentucky.
- Germany: Germany has the second-largest gold reserves in the world, with 3,359.1 tonnes, which account for 74% of its total foreign reserves2. Germany has repatriated some of its gold from abroad in recent years and now keeps most of it in Frankfurt.
- Italy: Italy has the third-largest gold reserves in the world, with 2,451.8 tonnes, which account for 69% of its total foreign reserves. Italy has not sold any of its gold since 1999 when it joined the Central Bank Gold Agreement.
- France: France has the fourth-largest gold reserves in the world, with 2,436.5 tonnes, which account for 60% of its total foreign reserves. France has also not sold any of its gold since 1999, and has stated that it considers gold as a strategic asset.
- Russia: Russia has the fifth-largest gold reserves in the world, with 2,301.6 tonnes, which account for 23% of its total foreign reserves. Russia has been the largest buyer of gold in the past decade, increasing its reserves by more than 1,000 tonnes since 2010.
Which Countries Produce the Most Gold?
According to the latest data from the US Geological Survey, the top five gold-producing countries in the world in 2022 were:
- China: China was the world’s largest gold producer, with 330 metric tons (MT) of gold output in 2022. China has been the top producer since 2007 and accounts for about 10.6 percent of the global production. China’s gold mining industry is dominated by state-owned companies, and most of the gold is stored in Fort Knox, Kentucky.
- Australia: Australia was the second-largest gold producer, with 320 MT of gold output in 2022. Australia has the largest gold reserves in the world, with about 8,400 MT, and some of the world’s largest and most productive gold mines. Australia’s gold mining industry is diverse and competitive and has been boosted by exploration activity in the Pilbara region.
- Russia: Russia was the third-largest gold producer, with 320 MT of gold output in 2022. Russia has the second-largest gold reserves in the world, with about 6,800 MT, and some of the world’s most advanced and efficient gold mines. Russia’s gold mining industry is supported by the government and has been the largest buyer of gold in the past decade.
- Canada: Canada was the fourth-largest gold producer, with 220 MT of gold output in 2022. Canada has the fourth-largest gold reserves in the world, with about 2,300 MT, and some of the world’s most diverse and sustainable gold mines.
- United States: The United States was the fifth-largest gold producer, with 170 MT of gold output in 2022. The United States has the third-largest gold reserves in the world, with about 3,000 MT, and some of the world’s most historic and prolific gold mines.
See also: How Much is a 10k Gold Ring Worth In A Pawn Shop – Expert Answers
Which are the Largest Gold Mines in the World?
The largest gold mines in the world are located across nine different countries in North America, Oceania, Africa, and Asia. The top 10 gold mines by production in 2023 are:
- Muruntau, Uzbekistan: 2.4 million ounces
- Carlin, United States: 1.5 million ounces
- Olimpiada, Russia: 1.3 million ounces
- Lihir, Papua New Guinea: 1.2 million ounces
- Kibali, Democratic Republic of Congo: 0.9 million ounces
- Loulo-Gounkoto, Mali: 0.8 million ounces
- Boddington, Australia: 0.8 million ounces
- Cadia Valley, Australia: 0.8 million ounces
- Cortez, United States: 0.8 million ounces
- Pueblo Viejo, Dominican Republic: 0.7 million ounces
How is Gold Demand and Supply Balanced?
The demand and supply of gold are balanced by various factors, such as price, investment, jewelry, technology, and central bank activity. The main sources of gold supply are mine production, recycling, and net producer hedging. Meanwhile, the main sources of gold demand are jewelry, investment, technology, and central bank net purchases.
In 2022, the total gold supply was 4,633 tonnes, while the total gold demand was 3,759 tonnes. The difference between supply and demand is called the market balance, which can be positive or negative. A positive market balance means that there is more gold available than demanded, while a negative market balance means that there is more gold demanded than available.
The market balance can affect the gold price, as well as the level of gold inventories held by various entities, such as bullion banks, exchanges, and ETFs. For example, if the market balance is positive, the excess gold can be sold to meet the demand, or stored as inventory for future use. Conversely, if the market balance is negative, the shortfall of gold can be met by buying from the existing inventory, or by increasing the gold production or recycling.
See also: Places to Sell Gold Jewelleries Online For The Highest Bid
Why is Gold Valuable?
Gold is valuable because it has several unique properties that make it desirable for various purposes. Some of these properties are:
- Scarcity: Gold is rare and finite, which means that it cannot be created or destroyed. This gives it a high value and a stable supply.
- Durability: Gold is indestructible and does not corrode, tarnish, or rust. This means that it can last forever and retain its quality and appearance.
- Divisibility: Gold can be easily divided into smaller units without losing its value or quality. This makes it convenient and flexible for transactions and storage.
- Portability: Gold is dense and compact. Hence, this means that it can be easily carried and transported. A small amount of gold can have a large value and a low cost of transportation.
- Fungibility: Gold is homogeneous and interchangeable. This means that any unit of gold is equivalent to any other unit of the same weight and purity. Hence, this makes it easy to trade and exchange without verification or inspection.
- Beauty: Gold has a lustrous and attractive appearance, which makes it appealing for jewelry and decoration. Gold also has cultural and historical significance, as they use it as a symbol of wealth, power, and status for centuries.
How to Invest in Gold?
There are many ways to invest in gold, depending on your preferences, goals, and risk appetite. Some of the common methods are:
- Physical gold: This involves buying and owning gold in the form of bars, coins, or jewelry. This gives you direct exposure to the gold price, as well as the satisfaction of holding the metal. However, this also involves costs and risks, such as storage, insurance, security, and liquidity.
- Gold-backed ETFs: These are exchange-traded funds that track the price of gold by holding physical gold in vaults. This gives you indirect exposure to the gold price, as well as the convenience and liquidity of trading on an exchange. However, this also involves fees and risks, such as management, custody, tracking, and counterparty.
- Gold mining stocks: These are shares of companies that mine, explore, or process gold. This gives you indirect exposure to the gold price, as well as the potential for dividends and capital appreciation. However, this also involves risks and volatility, such as operational, environmental, political, and market.
- Gold futures and options: These are contracts that allow you to buy or sell gold at a predetermined price and date in the future. This gives you leverage and flexibility to speculate or hedge on the gold price. However, this also involves costs and risks, such as margin, settlement, expiration, and liquidity.
See also: Best Ways To Buy Gold | Expert Lead
FAQs
About 244,000 metric tons of gold have been discovered to date (187,000 metric tons historically produced plus current underground reserves of 57,000 metric tons). Most of that gold has come from just three countries: China, Australia, and South Africa.
Algeria is the clear leader in gold reserves in Africa, with over 174 metric tons. The country has been accumulating gold reserves since the early 2000s and its reserves are now worth over $10 billion.
Countries such as Switzerland, Australia, and Canada are known for producing high-purity gold, while countries such as China and Russia are the largest producers of gold in the world. When it comes to jewelry, the purity and color of gold used can vary depending on the desired durability and aesthetic.
The country with the most gold is the United States, with 8,133 metric tons in the American gold reserve. This amounts to a value of $480.84 billion, going by the price of gold at the beginning of January 2023.
Conclusion
Gold is a fascinating and valuable metal that has been used for various purposes throughout history. It is also a dynamic and complex market that involves many factors and players.
By understanding how much total gold is in the world, where it comes from, and how they use it, you can gain a deeper insight into the role and importance of gold in the global economy and society.
References
- Bbc.com – How much gold is there left to mine in the world?
- Statista.com – Global gold mining – statistics & facts
- Investopedia.com – What Countries Have the Largest Gold Reserves?
Recommendations
