Everyone might as well delve into which fields the gold mined globally ultimately flows into. According to detailed allocation data, gold used for investment purposes occupies the largest market share, reaching as high as 43%, which includes various forms such as coins, gold bars, and ETFs. Following closely is the jewelry manufacturing industry, which consumes 33% of the gold resources. In addition, central bank reserves account for 17%, while only 6% of gold is applied in the technology industry.

It is evident that the primary use of gold is not for making decorative items, but rather as an asset entering the financial investment market. If we consider jewelry manufacturing and technology applications as the actual consumption pathways for gold, then the total of these two combined is only 39%. This means that the vast majority of gold actually flows into the reserves of central banks and various investment channels.

Therefore, it can be seen that there is fundamentally no so-called supply shortage issue in the gold market. We can also infer from this that the fluctuations in gold prices are almost entirely unrelated to the balance of physical supply and demand.