Have you ever wondered where the gold mined globally ultimately flows to?

Let's take a look at the specific data distribution. Surprisingly, the largest destination for gold is not the jewelry we commonly see, but rather the investment sector. Specific data shows that as much as 43% of gold is used for investment channels such as bullion, coins, and ETFs, while central banks have absorbed 17% of the share.

In contrast, the proportion of gold used for making jewelry is 33%, and the application in technology accounts for only 6%. If we combine the two categories of jewelry and technology that have practical application value, the total proportion is actually only 39%. This means that the vast majority of gold ultimately flows into the investment market or becomes reserve assets for central banks.

From this, we can draw a conclusion: there is no issue of supply shortage for gold. This also explains why the fluctuations in gold prices are almost not directly related to the traditional supply and demand balance.