


There are four main demands for the use of Gold.
These are:
1) Jewellery: The largest source of demand is for the production of jewellery. The demand in recent years has exceeded mining production. This shortfall for supplies has been made up from scrap, and the release of Government Gold reserves. Gold's workability, unique beauty, and universal appeal make this rare precious metal the favorite of jewellers all over the world.
2) Industrial applications: Besides jewellery, gold has applications in many fields including aerospace, medicine, electronics and dentistry. The electronics industry needs gold for the manufacture of computers, telephones, televisions, and other equipment. Gold's unique properties provide superior electrical conducting qualities and corrosion resistance, which are required in the manufacture of sophisticated electronic circuitry. In dentistry, gold alloys are popular because they are highly resistant to corrosion and tarnish. For this reason gold alloys are used for crowns, bridges, gold inlays, and partial dentures.
3) Governments and central banks: The third source of gold demand is governments and central banks that buy gold to increase their official reserves.
4) Private investors: Finally, there are private investors. Depending upon market circumstances, the investment component of demand can vary substantially from year to year. Many private investors purchase gold as a form of sercurity against a possible collapse of the fiat currency.
