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1)
Jewelry fabrication
2)
Industrial applications
3)
Governments and central banks
4)
Private investors
1)
Jewelry fabrication: The largest source of demand
is the jewelry industry. In recent years, demand
from the jewelry industry alone has exceeded Western
mine production. This shortfall has been bridged
by supplies from reclaimed jewelry and other industrial
scrap, as well as the release of official sector
reserves. Gold's workability, unique beauty, and
universal appeal make this rare precious metal
the favorite of jewelers all over the world.
2)
Industrial applications: Besides jewelry, gold
has many applications in a variety of industries
including aerospace, medicine, electronics and
dentistry. The electronics industry needs gold
for the manufacture of computers, telephones,
televisions, and other equipment. Gold's unique
properties provide superior electrical conducting
qualities and corrosion resistance, which are
required in the manufacture of sophisticated electronic
circuitry. In dentistry, gold alloys are popular
because they are highly resistant to corrosion
and tarnish. For this reason gold alloys are used
for crowns, bridges, gold inlays, and partial
dentures.
3)
Governments and central banks: The third source
of gold demand is governments and central banks
that buy gold to increase their official reserves.
4)
Private investors: Finally, there are private
investors. Depending upon market circumstances,
the investment component of demand can vary substantially
from year to year.
Article
source: Compliments of the World Gold Council
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