With the Corona epidemic peaking, the global economy has increased demand for gold rapidly. On the other hand, the supply of gold from the mine is decreasing. This can create a crisis in times to come. According to the World Gold Council, the total production of gold in 2019 was 3531 tonnes which is one percent less than in 2018. Gold production has declined for the first time since 2008. In the coming few years, the production of gold can be reduced further because the food grains which are presently are being fully utilized. New mines are now getting less. Its effect is likely to fall on the price of gold in the coming time. There may be a big jump in the price of gold.
Companies extracting gold from the mine find out the storage of gold in two ways. This includes first reserve gold and second gold, which will be economical to remove. According to one figure, 20 percent gold mining is yet to be done, but the figures keep changing.
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At the same time, according to the Geological Survey of America, gold reserves are currently 50,000 tons. So far 190,000 tonnes of gold have been extracted from the mine. According to the report, new gold mines are in search, but they are being found in very small quantities. Therefore, in future also, we will have to depend more on old mines.
Investors trust on gold ETFs
Gold investors remain confident in Gold ETFs amid Corona crisis. It has invested for the sixth consecutive month. According to the data, investors invested Rs 597 crore in September. In August also, 908 crore rupees were invested in this category. Talking about this year, an investment of Rs 5,957 crore has been made so far in this Gold ETF category. Experts say that investor confidence has increased due to recent returns in Gold ETFs.