Gold is a precious metal that continues to be in use by humanity since ancient times. In previous generations, we used to consider its high value, and thus it was only used for making jewelry. But over the last century, people have understood that gold can be used as an investment asset as well. Let’s study how this applies to Australia and how Australian jewelry supplies are working in the country.
Just How Big is the Gold Industry in Australia
If you are in Australia, you can easily find different types of Australian jewelry supplies in the market. If you are an Australian citizen, then you must know that Australia is the second-largest gold producing nation in the world, only next to China.
According to reports, the Australian gold industry is worth around 19 billion USD, due to which it has some of the world’s largest gold reserves with approximately 17% of the gold of whole world. Australia reported an annual export of gold worth 1.9 billion USD in 2019.
The Australian gold industry gives employment to more than 50, 000 people. Australia has more than 50 active gold mines and the annual production in 2019 was around 326 tonnes, which is approximately 9% of the world’s total gold production. In 2018 only, Australian jewelry supplies were at the top position for the amount of gold mined by the mining companies and suppliers.
Which industries are the top users of gold in Australia?
- Jewelry sector: As expected, the jewelry traders and buyers contribute to the largest users of gold in Australia.
- Finance, Banking and Investment sector: The next largest buyers of gold are the banks and financial institutions that use gold for many purposes, such as lending and sale.
- Electronics sector: The electronics sector is the third-largest buyer of gold. Gold is used in many electrical circuit boards, as it is a good conductor of electricity.
- Medicine sector: Many pharmaceutical companies also use gold for manufacturing certain medicines.
- Aerospace industry: The fifth-largest user of gold is the Aerospace industry in Australia.
Is the gold industry future bright in Australia?
The Australian industry is producing gold at an extremely high rate, but experts suggest that this might not be the case for around 5-10 years down the line. Experts have predicted that the largest island nation in the world might fall behind in terms of gold production and annual output.
Rising gold prices in Australia
The Australian dollar price of gold is at an all-time high according to the market experts and analysts. It is around 1700-1800 AUD for one ounce. Many experts say that this could mean a lot of money lost in the production of Australian gold.
Old mines are starting to get depleted of their rich gold reserves
According to experts, the gold mines in Australia are running on high. But at the current rate of gold production, the mines may not last long. This is compounded by the fact that not many new mines have opened in the last few decades.
On the other hand, the Australian government has said that it has enough gold reserves and that Australia will continue to dominate the global gold industry. According to government expenditure, a large chunk of the Australian budget is devoted to research and development of new mines for keeping up with the rate of Australian jewelry supplies made of gold.
It is true that most of the gold mines in Australia are in function for decades now, and to keep mines profitable, the government has to keep spending more money. On the other hand, to keep up with the growing demand for gold supplies in several industries, the government has to find out new gold deposits in the country that can be ventured profitably. Only then the demand for Australian jewelry supplies would be met.