Gold facts

Gold is a precious metal commonly used for investments and jewellery (rings, necklaces, watches, etc.). However, the numerous desirable properties of gold, such as superior electric conductivity and resistance to corrosion, has also made it an important input into many electrical and technology applications.

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Uses

In 2020, gold demand for investment purposes reached 47%, overtaking jewelry at 38% as its primary use.

The uncertainty brought on by the COVID-19 pandemic in 2020 was largely responsible for the 40% increased use of gold as an investment.

Investors buy gold in the form of wafers, bars and coins, believed to offer a measure of protection from the risks of inflation and market volatility. Gold-backed exchange-traded funds (ETF) are another source of investment demand for gold.

Approximately 8.0% of the demand for gold is for use in technology applications, mostly as a component of micro-circuitry in a range of electronic products.

Production

Canadian mines produced an estimated 182 tonnes of gold in 2020, which is a 78% increase over gold production in 2010, and a 1% increase compared to 2019. In 2020, mine production increased in Quebec, Manitoba and in the Other P/T category (includes: Nunavut, Saskatchewan, Nova Scotia, Yukon, Newfoundland and Alberta) while production fell in Ontario, and British Columbia. Ontario and Quebec produced 71% of the gold mined in Canada in 2020. The following pie chart shows the share of each gold producing jurisdiction by their percentage of 2020 preliminary production.

International context

Global gold mine production reached an estimated 3,200 tonnes in 2020, a 3% decrease from 2019. 

The top five gold-producing countries accounted for 43% of the world's annual gold output in 2020. Canada ranked fifth, with 6% of global mined production.

World gold mine production, by country, 2020 (p)

Ranking	Country	Tonnes	Percentage of total
1	China	380	11.9%
2	Australia	320	10.0%
3	Russia	300	9.4%
4	United States	190	5.9%
5	Canada	182	5.7%
6	Ghana	140	4.4%
-	Other countries	1,688	52.8%
World total		3,200	100.0%

World reserves

Gold mineral ore reserve estimations are based on ore that can be considered reasonably, economical and technically extractable at the time of estimation. According to the U.S. Geological Survey, world reserves of gold ore were estimated at 53,000 tonnes in 2020.

World reserves of gold, by country, 2020 (p)

Ranking	Country	Tonnes (thousands)
1	Australia	10.0
2	Russia	7.5
3	United States	3.0
4	South Africa	2.7
5	Peru	2.7
6	Indonesia	2.6
7	Brazil	2.4
8	Canada	2.2
-	Other countries	20.0
Total		53.0

Trade

Exports

• The value of Canadian gold exports in 2020 was $23.7 billion, a 6% increase from the previous year’s total of $22.3 billion.
• Canada exported 6.5 million ounces of gold to the United Kingdom, accounting for 70% of Canada’s gold exports. Gold flows to the United Kingdom in part because of its role as financial hub for global gold trade, as international investors purchase and sell gold on the London Bullion Market Association.
• Canada’s exports of unwrought gold decreased to 287 tonnes in 2020, down from 366 tonnes in 2019. However, the value of unwrought gold exports increased to $21.3 billion in 2020, up from $20.7 billion in 2019, a reflection of higher prices.
• The value of Canadian gold exports in metal ores and concentrates increased to $1,030.9 million in 2020, up from $845.8 million in 2019.

Imports

• The value of all forms of gold imports in Canada was $15.6 billion in 2020, up from $9.6 billion in 2019.
• Canada imported 242 tonnes of unwrought gold in 2020, valued at $11.6 billion. This is a decrease in volume but an increase in value compared to 2019, when imports totaled 315 tonnes and were valued at $7.5 billion.

Prices

Gold prices fluctuated significantly over the last decade from US$1,360 per troy ounce in January 2011 up to US$1,756 per troy ounce in August. Prices generally declined from October 2012 until September 2018, when gold prices started to initiate a recovery.

In 2020, gold prices reached record levels over US$2,000 per ounce by mid‑year as investors flocked to the safe‑haven commodity during the uncertainty brought on by the pandemic. Gold prices have since come down, but remain at historically high levels.

Recycling

Gold is continually being recycled, often in the form of old jewellery that is melted down for reuse. A major motivation for consumers to sell or hold on to their gold jewellery is the price of gold in their respective currencies.

When gold prices rise, it usually increases the supply that is available for scrap (recycled gold).   Recycled gold supply increased to 1,297 tonnes in 2020, up from 1,282 tonnes in 2019.

Recovering gold from end-of-life electronics is an additional and major contributor to the global scrap supply.