Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
A total of 220,000 tonnes of gold worth $31 trillion has been mined by the end of 2025 since the beginning of human history, according to the World Gold Council (WGC) in its latest report.
The sheer scale of global gold stock can be visualised as a cube measuring 22.5 metres on each side, if all the gold mined were melted together, the report noted.
Jewellery accounts for the largest share of this stock, representing 44% of total gold mined, equivalent to 97,650 tonnes valued at $14 trillion, according to the WGC.
Central banks and other official institutions hold 18% of global gold stock, or about 38,670 tonnes valued at $5 trillion, as part of their reserves. By Q3 2025 gold accounted for 26% of total global allocated reserves, according to IMF COFER data, with only the US dollar holding a greater share.
Investment demand also forms a significant portion of the market. Bars and coins account for 21%, equivalent to 46,950 tonnes valued at $7 trillion, while physically-backed gold ETFs represent 2%, or around 4,025 tonnes valued at $0.6 trillion, the report said.
In addition, over-the-counter (OTC) holdings by institutions and high net worth investors are estimated at around 5% of total stock, or up to 10,000 tonnes valued at $1.5 trillion, reflecting less visible private market activity.
The remaining 10% of global gold stock, equivalent to 22,600 tonnes valued at $3 trillion, is used primarily in technology and other industrial applications.
“Gold’s role as a consumer good and an investment asset is shaped by its scarcity, the durability of its above-ground stock, and its usefulness to individuals and institutions alike,” the WGC said.
The report also highlighted that the total investible gold market is valued at around $15 trillion, comprising $14 trillion in physical gold — including bars, coins, ETFs and OTC holdings — and about $1.5 trillion in derivatives.
The gold market remains one of the most liquid globally, with approximately 3,000 tonnes of gold worth about $361 billion traded daily in 2025. London remains a key hub with more than $160 billion in over-the-counter volumes per day, while COMEX leads in derivatives trading, followed by the Shanghai Futures Exchange.
Despite its scale, gold represents a relatively small share of global financial assets.
The WGC estimates that about $9 trillion worth of gold bullion held by investors accounts for just 3% of the $320 trillion global financial assets, suggesting significant under-allocation in portfolios.
The report notes that up to 30% of investors may have no allocation to gold, while a strategic allocation of around 5%, within a range of 2% to 10%, could enhance portfolio balance depending on investment objectives.
“Gold’s dual demand from consumption and investment, combined with its geographically far-reaching mine supply and a significant contribution from recycled gold, creates a natural balance for the market and limits outsized shocks,” the WGC said.
The WGC emphasised that gold’s above-ground stock is effectively permanent, as the metal is virtually indestructible and continues to exist in various forms including jewellery, bars, coins and reserves. This allows the market to respond dynamically to changes in demand, price and risk conditions.
Gold supply comes from a mix of mined sources (74%) and recycled gold (26%), with production geographically diversified, reducing the risk of supply shocks and contributing to relatively low volatility compared to other commodities.
The report added that the global gold stock grows at a relatively slow pace of around 1.8% annually, reinforcing its scarcity and supporting long-term performance.
“This combination of scarcity and scale underpins gold’s relevance to all investor types,” the WGC said.
