Western Australian production is expected to increase to record levels over the next year. World production has increased only slowly over the past few years, despite strong demand. The most likely sources of increased production are China, where production is presently poorly organised and financed, and the CIS which is very active in attracting foreign interest in exploration, in development, and in refurbishing existing operations. Although gold has industrial uses, especially in electronics, almost all of the gold produced in recent years has been used for making coins and jewellery, or held as bullion. The amount of gold held as reserves by the Central Banks has not changed significantly over the last two decades.
Jewellery is now the dominant market for gold.
In 1993 jewellery production consumed over 2,800 tonnes of gold. This is more than double the figure six years before, and significantly greater than total world production. Most of this growth in demand has occurred in the developing countries of Asia where jewellery is often 22 carat, and can be more readily Waded than metal of 18 carats or less used in the USA and Europe. In this context, jewellery is a mark of prosperity, and the rapid expansion of demand for jewellery in newly prosperous areas like Asia is likely to continue in the medium term while those areas continue to thrive. For example, a slow down in Chinese gold demand in late 1993 occurred as a result of the Chinese austerity program.