Gold 0.21%
£3,260.51 OZ
Silver -2.37%
£48.74 OZ
Platinum -0.49%
£1,344.61 OZ
The Silver Britannia is capital gains tax free in the UK, making is a very popular choice with UK investors
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Gold, a metal with unparalleled historical and cultural significance, is one of the few commodities that remains virtually indestructible. This unique property ensures that nearly all the Gold ever mined continues to exist in some form today, contributing to the vast above-ground stock.
As of the end of 2023, the total above-ground Gold stock is estimated to be approximately 212,582 tonnes, offering a fascinating glimpse into how this precious metal is distributed and utilised across various sectors.
Historical data suggests that around two-thirds of all the gold ever mined has been extracted since 1950. This equates to a staggering increase in production during the modern era, driven by advancements in mining technology, economic growth, and gold’s enduring appeal. If every ounce of gold ever mined were melted down and shaped into a cube, it would measure just 22 meters on each side—a surprisingly small volume given its immense value and global influence.
Annual gold mining continues to add approximately 2,500 to 3,000 tonnes to the above-ground stockpile. While this rate contributes incrementally to global reserves, the existing stock remains the dominant source of liquidity in the gold market.
The allocation of gold across these sectors provides valuable insights into market trends. For instance, the aftermath of the global financial crisis saw a rapid increase in gold held for private investment purposes. This shift highlighted investors’ preference for gold as a safe-haven asset during periods of economic instability. Similarly, central banks have increased their holdings in recent years, reflecting concerns about currency volatility and the need for diversification.
Jewellery remains the largest repository of gold, symbolizing wealth, culture, and tradition across the world. With nearly half of the global stock dedicated to ornamental purposes, this sector demonstrates gold’s enduring role in personal adornment and status.
Private investment, including bars, coins, and gold-backed exchange-traded funds (ETFs), accounts for over one-fifth of the total stock. This category has grown significantly in the aftermath of the 2008 financial crisis, as investors sought gold as a hedge against economic uncertainty.
Central banks hold significant gold reserves as part of their monetary policies, using the metal to stabilize currencies and hedge against inflation. This sector underscores gold’s dual role as both a commodity and a financial asset.
Gold’s industrial applications, including electronics, medical devices, and aerospace technologies, make up a smaller but vital portion of its above-ground stock. Additionally, some of this category includes decorative items and cultural artifacts.
While not part of the above-ground stock, proven reserves of 59,000 tonnes highlight the potential for future mining activity. These untapped resources represent opportunities for sustained production and market growth.
Investing in British Gold
The Gold Britannia coins are the Royal Mint’s flagship fine Gold coin and is available at low-premiums, buyback guarantee and no Capital Gains Tax to pay when selling
