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Gold has been valued for thousands of years, first as jewelry and ornamentation and later as a dependable store of wealth. It is also used in electronics, medicine, and other industries, but bullion in the form of bars and coins, refined to 99.5 percent or higher purity, remains the foundation of modern gold ownership.
Over the past 25 years, gold’s price has increased by about 284%, outperforming inflation more than threefold. This long-term growth has increased demand for gold dealers, who provide the primary channel for investors to buy, sell, and roll over gold into retirement accounts.
Key Insights
Gold remains a top-performing asset in 2025, up nearly 26% in USD terms in the first half of the year, with forecasts suggesting prices could average $3,675/oz by Q4 and possibly reach $4,000/oz in 2026.
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Global demand is strengthening, with Q2 2025 consumption at 1,249 tonnes, supported by ETF inflows, central bank purchases, and resilient retail investment despite weaker jewelry volumes.
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Supply is steady but costly, with 2025 mine output projected at 3,694 tonnes and recycling contributing meaningfully, though still below the highs of 2011–2012. Rising production costs are pressuring margins.
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The gold market is highly diverse, with central banks, investors, jewelers, and industries driving demand, while over 80,000 U.S. jewelry businesses and about 300 Mint-authorized purchasers facilitate trading.
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Gold Supply and Demand
Gold is a nonrenewable resource that comes from both mining and recycling. Around 216,265 tonnes have been mined throughout history, with nearly two-thirds of that total extracted since 1950.
According to the World Gold Council, global gold demand reached 1,249 metric tons in Q2 2025, a period of high inflation trends measured by the CPI and fluctuating exchange rates. The LBMA benchmark continues to guide daily gold trading worldwide.
Gold Supply
Global gold production in 2025 is concentrated among a handful of major producers that shape the gold market for both industry and investment. Here’s how much gold the top countries are producing this year:
- China: About 375 stl in 2025, supported by new reserves and improved mining technology in provinces such as Shandong and Henan.
- Russia: Around 335 tonnes in 2025, driven by expanded operations in Siberia and new exploration projects.
- Australia: Approximately 325 tonnes in 2025, supported by expansion projects in Western Australia and advanced mining methods.
- United States: Steady at about 200 tonnes in 2025, with Nevada and Alaska continuing as the primary mining regions.
2025 Gold Mining and Reserves by Country (in Tonnes)
Global mine production reached a record 3,661 metric tons in 2024, a 0.6 percent increase from the previous year, with growth led by Mexico, Canada, and Ghana. Rising costs also influenced the sector, as global all-in sustaining costs (AISC) climbed 8 percent to $1,399 per ounce due to inflation and higher royalty fees. In 2025, output is expected to increase by about 1 percent to 3,694 metric tons, supported by the commissioning of new mining projects.
Total gold supply in 2024 increased by 1 percent year over year to 4,974 metric tons, the highest level on record. The rise came from gains in both mine production and recycling, showing how primary output and secondary sources together supported global demand.
Recycled Gold Supply
Recycling remains an important contributor to overall gold supply, though short-term trends can fluctuate. In the first quarter of 2025, recycled gold totaled 345 metric tons, down 4 percent quarter over quarter and 1 percent year over year, even as gold prices reached multiple record highs.
The longer-term picture shows that recycling volumes have been trending higher over the past two years and, on a rolling four-quarter basis, are now just below the highest levels seen in the past decade. However, current volumes still fall short of the exceptional highs recorded in 2011 and 2012, despite today’s higher gold prices and larger jewelry holdings among consumers.
Gold Demand
Global gold demand reached 1,249 metric tons in the second quarter of 2025, a 3 percent year-over-year increase. In value terms, demand rose 45 percent to US $132 billion. Industrial uses such as electronics and healthcare account for a smaller portion of demand compared with investment, jewelry, and central banks.
Gold-backed ETFs recorded a second consecutive quarter of large inflows, driven by geopolitical uncertainty and trade monetary policy tensions. Bar and coin demand also increased, creating the strongest first half since 2013. Central banks added 166 tons to official reserves, and although the pace moderated, demand from this sector remained steady. Jewelry volumes declined to near 2020 levels, while overall spending increased due to higher prices.
How Gold Is Performing in 2025 and Where It Could Go Next
The start of 2025 has seen record amounts of gold moved from vaults in London to New York, driven by tariff rhetoric and increasing geopolitical tension. Gold has gained strong momentum in this environment, ranking as one of the top-performing major asset classes in the first half of the year.
Prices rose nearly 26 percent in USD terms and delivered double-digit gains across most currencies. During this period, the metal set 26 new all-time highs, adding to the 40 records reached in 2024. Trading activity also expanded, with daily volumes averaging US$329 billion, the highest semi-annual figure on record.
Looking ahead, gold’s trajectory remains closely tied to economic and geopolitical conditions. Consensus forecasts suggest a relatively stable market with potential for a 0–5 percent increase in the second half of 2025.
Safe-haven demand could lift prices another 10–15 percent if stagflationary pressures or global risks intensify. On the other hand, a sustained resolution of conflicts could cause gold to retrace 12–17 percent of its gains from earlier in the year.
Who Buys the Most Gold?
Central banks are the largest buyers, using gold as a reserve asset to strengthen financial stability. In the first quarter of 2025, Poland purchased 48.6 tonnes, Azerbaijan 18.7 tonnes, Kazakhstan 15.3 tonnes, and China 12.8 tonnes.
Retail investors also play a major role, particularly in Asia, India, and the Middle East, while U.S. buying has eased. In the United States, gold generally accounts for 3–4 percent of an average portfolio, with younger men aged 18 to 34 showing the strongest interest through bars, coins, and ETFs. Jewelry remains a steady demand source, especially among middle-aged women, while the industry continues to use gold in electronics and healthcare.
Who Deals Gold?
Gold dealers act as intermediaries between producers and buyers, selling directly to individual investors or supplying jewelers, refineries, and bullion retailers. The market is highly fragmented, which makes it difficult to determine the exact number of gold dealers operating in the United States.
As of 2025, there are about 80,329 jewelry store businesses in the U.S., a figure that has been gradually declining in recent years. Many of these stores are involved in some level of gold trading, either through jewelry sales or bullion offerings.
The U.S. Mint also plays a role in distribution through a network of roughly 300 authorized purchasers. However, this list is not exhaustive, as it primarily covers bullion coin dealers and does not include firms that specialize in gold bars.
Choosing a Gold Dealer
Those who are interested in purchasing gold bullion as investors should compare multiple dealers and consider how each dealer’s services match their investment goals, storage preferences and budget.
If you’re interested in the tax advantages associated with holding your gold in a self-directed individual retirement account (IRA), you can narrow down the selection of dealers to those that offer gold IRAs. A dealer may help its clients establish a new self-directed IRA or roll over existing retirement funds.
It’s also important to consider how you want your gold to be stored. Some dealers expect clients to store their gold independently, while others provide clients with secure storage. Fees for storage and other ongoing services, like account management, can vary. A dealer may also charge one-time fees for account setup or bullion shipping.
Finally, reading reviews of different gold dealers can provide a glimpse into current and past customers’ experiences with the dealer’s service representatives, speed of service and shipping process.
Should I Invest in Gold?
Gold can help diversify a portfolio by reducing exposure to broader market swings. Its low correlation with other asset classes makes it valuable as a form of insurance during recessions, currency fluctuations, or geopolitical stress. A moderate allocation may soften losses when other sectors, such as energy or real estate, are under pressure.
Prices have been on a record-setting run, breaking the $2,900 per ounce barrier in February 2025 and peaking at $3,500 per ounce in April amid U.S. tariff moves and geopolitical tensions. Forecasts suggest an average of about $3,675 per ounce by the fourth quarter of 2025, with the potential to reach $4,000 by mid-2026. Several factors shape the investment case for gold:
- A weaker U.S. dollar and lower interest rates generally increase the appeal of gold.
- Geopolitical instability and recession risks strengthen its role as a safe-haven asset.
- Gold can serve as protection against currency debasement and inflation.
- Overexposure leaves investors vulnerable to sudden price swings, so allocations are best kept moderate.
How Can I Invest In Gold?
There are a number of ways to invest in gold, each with its own advantages and disadvantages. Explore a few of the most common gold investments below.
Physical Gold
You can get direct exposure to gold by buying gold coins or bars from gold dealers or private collectors. Just like palladium or silver, physical bullion carries premiums over the gold spot price. Reviewing a gold price chart with historical data can help investors choose how to own gold.
By holding physical gold in a self-directed IRA, you can either deduct contributions from your taxes (in the case of a traditional IRA) or avoid paying taxes on your withdrawals (in the case of a Roth IRA).
Keep in mind that physical gold investments are subject to a different level of scrutiny than traditional investments. Dealers that sell and deliver gold to their customers within 28 days of purchase don’t need to register with securities regulators, and precious metal investments aren’t covered by the Securities Investor Protection Corporation. Further, the U.S. government does not provide a list of approved precious metals dealers, increasing the onus of due diligence on investors.
Gold ETFs
Gold exchange-traded funds (ETFs) may either track the price of gold or hold a basket of different gold-related securities. Buying gold ETF shares allows you to invest in gold without buying physical gold. And unlike buying stock in one gold mining company, buying shares of a diversified ETF can mitigate the risk associated with an individual gold company’s underperformance.
However, an ETF’s issuer will charge management fees (called “expense ratios”) that cut into the ETF’s returns.
FAQs
Several well-established companies are considered highly reliable in the U.S. market, including Orion Metal Exchange, American Hartford Gold, and Goldco. These dealers have long track records, transparent pricing, and strong customer reviews.
Visit our detailed review on the top gold dealers in the US.
Profit margins on gold trading vary depending on the type of product and the dealer. Retail margins for bullion coins and bars often range from 2–5 percent above the spot price, while collectible coins or smaller denominations may carry higher premiums. Dealers also make money on the spread between buying and selling prices.
Gold prices are shaped by a variety of economic and geopolitical factors. The most important include:
Strength of the U.S. dollar and interest rate levels
Inflation and currency debasement risks
Central bank buying and global investment demand
Geopolitical tensions, trade policies, and global crises
Gold is a relatively liquid asset with several selling options. Local gold dealers or pawnbrokers offer the fastest way to sell, though their pricing is often less competitive. National bullion dealers, such as APMEX, also buy directly from private investors, typically through secure shipping services, which can result in better payouts.
Sources
- World Gold Council – How Much Gold Has Been Mined? (Evaluated 16 August 2025)
Link Here - Reuters – Global Gold Demand Up 3% in Q2 2025 as Investment Jumps (Evaluated 16 August 2025)
Link Here - SEAsia Consulting – Top 10 Gold Producing Countries 2025 (Evaluated 16 August 2025)
Link Here - Trading Economics – Gold Reserves by Country (Evaluated 16 August 2025)
Link Here - World Gold Council – Gold Demand Trends Q1 2025 (Supply) (Evaluated 16 August 2025)
Link Here - World Gold Council – Gold Demand Trends Q2 2025 (Evaluated 16 August 2025)
Link Here - World Gold Council – Gold Mid-Year Outlook 2025 (Evaluated 16 August 2025)
Link Here - First National Bullion – Precious Metals Ownership in the U.S. (Evaluated 16 August 2025)
Link Here - IBISWorld – Jewelry Stores in the U.S. (Evaluated 16 August 2025)
Link Here - J.P. Morgan – Gold Prices Outlook 2025–2026 (Evaluated 16 August 2025)
Link Here