The United Arab Emirates (UAE) has witnessed a significant decline in gold jewellery demand in the past year, despite still ranking as one of the world’s largest consumers of gold jewellery. The country’s annual consumption of gold jewellery stands at nearly 40 tonnes, placing it alongside Russia in terms of demand. However, consumption levels have fallen from 46.9 tonnes in 2022 to 39.7 tonnes in 2023, with a further 10% decline in demand recorded in the first quarter of 2024.
The UAE boasts the world’s second-highest consumer demand for gold jewellery per capita, trailing only behind Hong Kong. The global jewellery industry accounted for nearly half of the total gold demand, with gold values increasing by approximately 20% compared to the previous year. China has overtaken India as the leading consumer of gold jewellery in 2023, with a significant demand of 630 tonnes, representing a 10% year-on-year increase.
Gold’s status as a safe-haven investment has been bolstered by escalating geopolitical tensions and lower US interest rates, contributing to a global surge in gold demand. China, in particular, has seen a significant rise in gold consumption across various sectors, including jewellery, bars, and coins. As the largest single gold market in the world, China’s gold jewellery demand rose by 10%, while its bar and coin investments surged by 28% in recent years.
India ranks second in terms of jewellery demand, with a total of 562 tonnes consumed annually. The country also holds a prominent position in terms of gold reserves, boasting approximately 804 tonnes worth a value of $50 billion. The United States follows India as the third-largest consumer of gold jewellery, with solid gold reserves valued at $507 billion. Turkey occupies the fourth position with an annual demand of 42 tonnes.
The US leads as the world’s largest holder of gold reserves, with 8,133 tonnes valued at $507 billion. India has shown increased interest in gold reserves, with a significant number of Google searches related to the topic as of February 2024. China emerges as the prominent player in the gold bar and coin sector, with 280 tonnes of gold bars and coins in demand, reflective of the country’s strong investment appetite for gold.
China’s status as the top gold producer in the world further solidifies its position as a key player in the global gold market. The country’s commitment to large-scale mining operations has resulted in significant contributions to the global production of gold. In terms of gold exchange-traded fund (ETF) holdings, North America leads the pack with 1,581 tonnes, accounting for over half of the world’s total ETF holdings. The US and Canada are among the major contributors to North America’s substantial holdings.
