The Banking Executive Magazine - May 2024 Issue

World Gold Resources GOLD PRICE GROUP RESOURCES Gold price group mission is to pro- vide accurate fast loading, gold price charts in ounces, grams and kilos in a wide range of national currencies for visitors from around the world. It also aims to provide gold prices from major Gold Dealers in the United States, Canada, UK and Australia to allow our visitors to locate the best gold prices on gold bullion. KITCO GOLD RESOURCES Kitco is the global precious metals authority and retailer of bullion prod- ucts, recognized as the leading voice in commodities information provid- ing best-in-class news, data and in- sights. Kitco’s media division is a precious metals, commodities and mining global authority, generating and distributing cutting-edge news, market insights and data to a global audience. IMF GOLD RESOURCES The IMF holds around 90.5 million ounces (or 2,814.1 metric tons) of gold at designated depositories. Until the early 1970s, the IMF ac- quired its gold holdings through four main channels: • At the IMF’s founding in 1944, member countries paid 25 percent of their initial quotas in gold. They did the same with quota increases over the next three decades. These payments represent the largest source of the IMF's gold. • Members normally paid all interest owed on IMF credit in gold. • Members also could use gold to repay credit extended by the IMF. • Members seeking to acquire an- other member’s currency could do so by selling gold to the IMF, as South Africa did in 1970–71. WORLD BANK GOLD RESOURCES The world bank open data portal provides various statistics about gold reserves around the world. GOLD DEMAND Gold has emotional, cultural and fi- nancial value and is bought by differ- ent people across the globe for different reasons, often influenced by national socio-cultural factors, local market conditions and wider macro- economic drivers. Gold’s diverse uses in jewellery, technology and by central banks and investors, mean different sectors of the gold market rise to prominence at different points in the global economic cycle. Gold is bought by a diverse set of consumers and investors across the globe. Gold demand is driven by: • Jewellery Demand: Gold jewellery represents the largest source of an- nual demand for gold per sector. This has declined over recent decades, but it still accounts for around 50% of total gold demand. India and China are by far the largest jewellery markets, together accounting for over 50% of the global total. The Asian and Middle Eastern markets are dominated by demand for purer, higher-carat gold. • Gold Investment Demand: Gold has unique properties as an asset class. Modest allocations to gold can be proven to protect and en- hance the performance of an in- vestment portfolio, reducing volatility and minimising losses during periods of market shock. • Central Bank Demand: Gold plays an important part in global central bank reserves, and they are signif- icant holders of gold. The 2008 financial crisis prompted a funda- mental shift in central bank behav- iour towards gold, encouraging a reappraisal of its role and rele- vance in reserve asset manage- ment. Emerging market central banks have increased their official gold purchasing, while European banks have ceased selling, and the sector now represents a significant source of annual demand for gold. • Gold in Technology Demand: Gold is used as an industrial metal in a broad range of applications, but demand is driven by the elec- tronics sector which accounts for ~80% of gold used in technology. USE OF GOLD IN VARIOUS APPLICATION DOMAINS Gold is a remarkable metal with di- verse applications across various do- mains: • Jewellery Manufacturing: Approx- imately half of all gold mined is used in jewellery. • Electronics: Gold is a crucial com- ponent in electronics due to its ex- cellent electrical conductivity and ISSUE 185 MAY 2024 the BANKING EXECUTIVE 9