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 new decade heights, largely brought on by uncertainties surrounding the COVID-19 pandemic. In 2021, jewellery repositioned itself as gold’s primary use, accounting for 55% or 2,229 tonnes of the world’s demand that year.

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% 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 223 tonnes of gold in 2021, which is more than twice the amount produced in 2012 and a 25% increase compared to 2020. In 2021, mine production increased in Quebec, Ontario, Manitoba, Nunavut, Saskatchewan, Yukon and Newfoundland and Labrador. In the same period, production fell slightly in British Columbia, Alberta and Nova Scotia.

Ontario and Quebec produced 70% of the gold mined in Canada in 2021. The following pie chart shows the share of each gold-producing jurisdiction by their percentage of 2021 preliminary production.

International context

Global gold mine production was estimated at 3,083 tonnes in 2021, which is a 2% increase from 2020.

The top five gold-producing countries accounted for 46% of the world's annual gold output in 2021. Canada ranked fourth, with 7% of global mined production.

World gold mine production, by country, 2021 (p)

Ranking	Country	Tonnes	Percentage of total
1	China	370	12.2%
2	Australia	330	10.7%
3	Russia	300	9.7%
4	Canada	223	7.2%
5	United States	180	5.8%
6	Ghana	130	4.2%
-	Other countries	1,550	50.3%
World total		3,083	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 54,000 tonnes in 2021.

World reserves of gold, by country, 2021 (p)

Ranking	Country	Tonnes (thousands)
1	Australia	11.0
2	Russia	6.8
3	South Africa	5.0
4	United States	3.0
5	Indonesia	2.6
6	Brazil	2.4
7	Canada	2.2
8	China	2.0
-	Other countries	19.0
Total		54.0

Trade

Exports

• The value of Canadian gold exports in 2021 was $21.3 billion, a 10% decrease from the previous year’s total of $23.6 billion.
• Canada exported 153 tonnes of gold to the United Kingdom, accounting for 47% 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 increased to 297 tonnes in 2021, up from 286 tonnes in 2020. However, the value of unwrought gold exports decreased to $18.2 billion in 2021, down from $21.2 billion in 2020, a reflection of lower prices.
• The value of Canadian gold exports in metal ores and concentrates remained steady at $1.0 billion in 2021 compared to the previous year.

Imports

• The value of all forms of gold imports in Canada was $12.1 billion in 2021, down from $15.6 billion in 2020.
• Canada imported 281 tonnes of unwrought gold in 2021, valued at $8.1 billion. This is an increase in volume but a decrease in value compared to 2020, when imports totaled 242 tonnes and were valued at $11.6 billion.

Prices

Gold prices fluctuated significantly over the last decade, ranging from US$1,286 per troy ounce in June 2013 up to over US$1,968 per troy ounce in August 2020. Prices generally declined and remained low from October 2012 until September 2018, when gold prices started to initiate a recovery.

In 2021, gold prices remained stable around US$1,800 per troy ounce after slightly declining from a record-breaking peak in 2020. Investors had flocked to the safe-haven commodity during the uncertainty brought on by the pandemic. Gold prices remain at historically high levels, closing the year at US$1,786 per troy ounce in December 2021.

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). The recycled gold supply decreased to 1,150 tonnes in 2021, down from 1,292 tonnes in 2020.

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