4 ms·

Only 10% of global gold production is used industrially. Most of gold's price is sustained by pure speculation.

• lxgr 3y ago
  Around half of the global demand is apparently for jewellery: https://www.gold.org/goldhub/data#demand-and-supply https://www.gold.org/goldhub/data#demand-and-supply
  • mrb 3y ago
    Yup. 10% industrial, ~45% jewelry, and ~45% bullion. Jewelry's use of gold is speculation just like bullion. People want gold or other precious metals in jewelry not because they provide the best physical properties at a given price-point (there are many superior alternatives), but only because such materials are expensive, ie. they speculatively assume the high prices will stay high and/or continue to appreciate.
    • micah94 3y ago
      what about just because it looks nice? people like nice things.
      • mrb 3y ago
        If "looking nice" was the main factor, people would be buying jewelry made of materials that look identical to gold AND are more durable AND are less expensive.