What to Expect in 2016 ?

BY Hiren M Samani – Sr.SEO at Transparency Market Research Pvt. Ltd.

Rising prices are expected to be a major factor driving the global gold market as more and more consumers are purchasing gold as a mean of long terms investments. Further, political instability and confidence over bullion, as a secure investment with high returns, aid in generating demand for gold. However, strikes, technical issues and diminishing ore grades might hamper the market growth in the coming years. Global gold supply is a mixture of mined gold, scrap recovery and central-bank supply. More than half of gold supply worldwide comes from mined gold. China is the largest producer of mined gold. It overtook South Africa in terms of gold production volume in 2007. 
Gold market can be segmented based on its end-use into three segments as jewellery, investment and others. Jewellery market saw a considerable decline between 2009 and 2011. The consumers had liquidated most of their jewellery during this period owing to the economic downturn in 2008-09. However, the market saw a rise again in 2012 due to economic recovery leading to gold’s rising prices. Jewellery market in China has trebled over the last decade and is likely to continue the growth trend with rising disposable income of the local population. Chinese market accounted for more than a quarter of the global jewellery market in 2013 according to the World Gold Council. Gold is considered as a safe haven for investment which further aids the market growth.