Gold Mining: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2019-2029

Market Definition

The process of mining for gold is known as gold mining. In the past, alluvial gold deposits were mined using manual separation techniques like gold panning. More complicated extraction methods, like pit mining and gold cyanidation, have been developed as a result of the development of gold mining to ores that are not on the surface. Large businesses dominated mining in the 20th and 21st centuries, but the price of gold has created millions of small, artisanal miners in many regions of the Global South.

Market Insights

The global gold mining market is anticipated to expand at a compound yearly growth rate of 2.8% during 2022-2029. The market was reported as 3,763.5 tonnes in 2021. The gold mining market is expanding as a result of rising investments and rising jewelry consumption. Although the demand for gold jewelry has been falling, it will be even more pronounced in 2020 as a result of the COVID-19 pandemic. Due to market closures and rising prices, demand decreased. Gold prices reached their peak during the epidemic and are anticipated to fall over the projection period. The second-largest end use of gold, representing nearly one-third of overall consumption, is for investment. Due to the increase in demand for exchange traded funds (ETFs), the investment sector saw a boom during the epidemic.

Mine production makes up around one-third of the market’s supply, which is the dominant share. The majority of the gold is extracted through hard rock mining, with placer mining coming in second. Although bio-mining is becoming more popular in various nations, its high operating costs are expected to impede the sector’s expansion. The gold price responds best to recycled gold. Around 90% of the gold that is recycled comes from jewelry, with the other 10% coming from technology. Due to the drop in demand for jewelry and technology uses during the epidemic, the gold market currently has a supply surplus of roughly 850 tonnes. The demand was significantly lower than the average of the previous ten years.

Due to cultural affinities and rising per capita incomes among customers in nations like China and India over the past ten years, the market for gold has shifted dramatically from western nations like the U.S. and Europe. The regulatory and taxing landscapes differ between nations and regions.

The major businesses control a substantial portion of the industry for gold mining, which is fairly consolidated. Top producers of gold mining equipment include Kirkland Lake, AngloGold Ashanti, Polyus, Kinross, Gold Fields, Newcrest, Agnico Eagle, and Newmont Corp. The market share held by the top ten companies is approximately 22–23%, and it is expected to rise as a result of an uptick in manufacturer merger and acquisition activity.

Market Dynamics: Drivers

Increasing Demand from ETFs

A third of the demand for investment gold is made up of exchange-traded funds (ETFs), exchange-traded commodities (ETCs), and other similar funds that are backed by physical gold. In 2003, these funds were established. On behalf of investors, these funds added 877 tonnes of physical gold in total in 2020. The demand for gold in ETFs increased at the highest rate in the world in 2020, totaling 550 tonnes, a 46% increase over the previous year.

Increasing Demand from Technology

The demand for gold in technological applications is mostly driven by advancements in the electronics sector. It is projected that the development of nanotechnology would increase demand for gold in engineering, engineering technology, and other fields. The electronics sector as a segment is expected to experience significant growth during the projection period among applications. The Chinese market is anticipated to dominate all others, followed by those of the United States, Japan, and South Korea. The Asia-Pacific area should have the highest growth rate of all the regions.

Market Dynamics: Challenges

Volatile Gold Prices

Due to its great economic worth and safety as an investment during the COVID-19 pandemic, investors flocked to gold. The price of gold significantly grew as investments increased, reaching a peak in 2020. In comparison to 2019, the average price of gold climbed by 27% in 2020. Demand for jewelry was considerably reduced by rising prices and market closures, particularly in nations like China and India—important markets that account for half of worldwide demand. Additionally, market closures and festival bans in India slowed the expansion of the nation’s jewelry sector, which in turn slowed the expansion of the gold mining industry.

Market Segmentation

• Based on Technology, the Global Gold Mining market is segmented into
  • Hardrock mining
  • Recycling
  • Placer mining
  • Bio-mining
• Based on End User, the Global Gold Mining market is segmented into
  • Jewellery
  • Investment
  • Central banks
  • Technology
• Based on Geography, the Global Gold Mining market is segmented into
  • Asia-Pacific
  • North America
  • Europe
  • Latin America
  • Middle East & Africa
• All market revenue has been given in US Dollar and volume in tons.

Historical Year: 2019-2020
Base Year: 2021
Estimated: 2022
Forecast- 2023-2029

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Gold Mining Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Gold Mining Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Gold Mining Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Gold Mining Market study?