Unlike previous decades when people had lots of gold and were loaded with heavy gold jewelry, most people have stopped wearing gold nowadays. Some fear of it getting stolen whereas, the majority of the people couldn’t afford the sky-touching prices of it. World Gold Council reports that the demand for gold since 2008 have dropped drastically by 14% in the final quarter of 2020.
The widespread effects of the Covid-19 pandemic have made the gold industry suffer as well. In 2020, the primary reason behind the lower demand for gold was the financial crisis that the world fell into due to the pandemic. The infographic below shows the weakening of different gold items in the years 2019 and 2020.
According to the chart, the total gold market saw a 14% deceleration in which the highest decrease was from the central banks, i.e., -59 percent. Moreover, the jewelry sector also shrank by double-digits, i.e., -33 percent. Since the technology sector has also been hit really hard by the Covid-19 crisis, the gold demand and usage in the sector declined by 7%. Fortunately, in the fourth quarter of 2020, the gold market experienced a year over year growth to 84 tons.
Infographic by: Statista.com