Real Assets
Visualizing Global Gold Production by Country in 2020
Global Gold Production by Country in 2020
People usually come across gold in the form of jewelry and admire it for its beauty, value, and permanence.
But before gold makes it into jewelry and vaults, it goes through a long and difficult production process that begins with mining.
The price of gold broke an all-time high of $2,000/oz in 2020, giving miners a brief boost to profitability. However, mine shutdowns due to the pandemic ultimately dented global gold production relative to 2019.
The above infographic breaks down gold production by country in 2020, highlighting the biggest nations for gold mining.
The Top 10 Gold Producing Countries
Although gold mining is a global business, just three countries—China, Australia, and Russia—accounted for 31% of global gold production in 2020.
Country | 2020 Production (tonnes) | % of Total |
---|---|---|
🇨🇳 China | 380 | 11.7% |
🇦🇺 Australia | 320 | 9.9% |
🇷🇺 Russia | 300 | 9.3% |
🇺🇸 U.S. | 190 | 5.9% |
🇨🇦 Canada | 170 | 5.2% |
🇬🇭 Ghana | 140 | 4.3% |
🇮🇩 Indonesia | 130 | 4.0% |
🇵🇪 Peru | 120 | 3.7% |
🇰🇿 Kazakhstan | 100 | 3.1% |
🇲🇽 Mexico | 100 | 3.1% |
🇺🇿 Uzbekistan | 90 | 2.8% |
🇿🇦 South Africa | 90 | 2.8% |
🇸🇩 Sudan | 90 | 2.8% |
🇧🇷 Brazil | 80 | 2.5% |
🇵🇬 Papua New Guinea | 70 | 2.2% |
🇲🇱 Mali | 61 | 1.9% |
🇦🇷 Argentina | 60 | 1.9% |
Other | 750 | 23.1% |
Total | 3,241 | 100.0% |
China topped the list partly due to the resumption of gold mining activities after pandemic-induced lockdowns. Furthermore, China accounted for 30% of global demand for gold jewelry in 2020, offering miners an additional incentive for production.
The U.S. produced 190 tonnes of gold in 2020, the majority of which came from mines in Nevada. Barrick Gold, the world’s largest gold mining company, produced roughly 85 tonnes or 45% of U.S. gold in 2020.
Indonesia ranks seventh in the list partly due to the Grasberg Mine, one of the world’s largest gold mines, which has produced over 1,500 tonnes or 53 million ounces of gold since 1990.
In total, miners produced 3,241 tonnes of gold in 2020, a 3% drop from the 3,300 tonnes mined in 2019. This also brings the total above-ground stocks of gold to around 201,296 tonnes, which are distributed between jewelry, investments, and central bank holdings.
How Much Gold is Left to Mine?
Gold derives part of its value from scarcity. So how much gold is left in the world?
According to the World Gold Council, the latest year-end estimate of underground gold reserves adds up to 50,000 tonnes. Of these, Australia and Russia collectively host around 35% or 17,500 tonnes.
At current production rates, these gold reserves will last less than 16 years. However, 2020 also saw $2.9 billion flow into gold exploration and development projects, which might one day add to the world’s gold reserves in the future.
Real Assets
De-Dollarization: More Countries Seek Alternatives to the U.S. Dollar
The U.S. dollar is the dominant currency in the global financial system, but some countries are following the trend of de-dollarization.

De-Dollarization: More Countries Seek Alternatives to the U.S. Dollar
The U.S. dollar has dominated global trade and capital flows over many decades.
However, many nations are looking for alternatives to the greenback to reduce their dependence on the United States.
This graphic catalogs the rise of the U.S. dollar as the dominant international reserve currency, and the recent efforts by various nations to de-dollarize and reduce their dependence on the U.S. financial system.
The Dollar Dominance
The United States became, almost overnight, the leading financial power after World War I. The country entered the war only in 1917 and emerged far stronger than its European counterparts.
As a result, the dollar began to displace the pound sterling as the international reserve currency and the U.S. also became a significant recipient of wartime gold inflows.
The dollar then gained a greater role in 1944, when 44 countries signed the Bretton Woods Agreement, creating a collective international currency exchange regime pegged to the U.S. dollar which was, in turn, pegged to the price of gold.
By the late 1960s, European and Japanese exports became more competitive with U.S. exports. There was a large supply of dollars around the world, making it difficult to back dollars with gold. President Nixon ceased the direct convertibility of U.S. dollars to gold in 1971. This ended both the gold standard and the limit on the amount of currency that could be printed.
Although it has remained the international reserve currency, the U.S. dollar has increasingly lost its purchasing power since then.
Russia and China’s Steps Towards De-Dollarization
Concerned about America’s dominance over the global financial system and the country’s ability to ‘weaponize’ it, other nations have been testing alternatives to reduce the dollar’s hegemony.
As the United States and other Western nations imposed economic sanctions against Russia in response to its invasion of Ukraine, Moscow and the Chinese government have been teaming up to reduce reliance on the dollar and to establish cooperation between their financial systems.
Since the invasion in 2022, the ruble-yuan trade has increased eighty-fold. Russia and Iran are also working together to launch a cryptocurrency backed by gold, according to Russian news agency Vedmosti.
In addition, central banks (especially Russia’s and China’s) have bought gold at the fastest pace since 1967 as countries move to diversify their reserves away from the dollar.
How Other Countries are Reducing Dollar Dependence
De-dollarization it’s a theme in other parts of the world:
- In recent months, Brazil and Argentina have discussed the creation of a common currency for the two largest economies in South America.
- In a conference in Singapore in January, multiple former Southeast Asian officials spoke about de-dollarization efforts underway.
- The UAE and India are in talks to use rupees to trade non-oil commodities in a shift away from the dollar, according to Reuters.
- For the first time in 48 years, Saudi Arabia said that the oil-rich nation is open to trading in currencies besides the U.S. dollar.
Despite these movements, few expect to see the end of the dollar’s global sovereign status anytime soon. Currently, central banks still hold about 60% of their foreign exchange reserves in dollars.
Real Assets
Charted: 30 Years of Central Bank Gold Demand
Globally, central banks bought a record 1,136 tonnes of gold in 2022. How has central bank gold demand changed over the last three decades?

30 Years of Central Bank Gold Demand
Did you know that nearly one-fifth of all the gold ever mined is held by central banks?
Besides investors and jewelry consumers, central banks are a major source of gold demand. In fact, in 2022, central banks snapped up gold at the fastest pace since 1967.
However, the record gold purchases of 2022 are in stark contrast to the 1990s and early 2000s, when central banks were net sellers of gold.
The above infographic uses data from the World Gold Council to show 30 years of central bank gold demand, highlighting how official attitudes toward gold have changed in the last 30 years.
Why Do Central Banks Buy Gold?
Gold plays an important role in the financial reserves of numerous nations. Here are three of the reasons why central banks hold gold:
- Balancing foreign exchange reserves
Central banks have long held gold as part of their reserves to manage risk from currency holdings and to promote stability during economic turmoil. - Hedging against fiat currencies
Gold offers a hedge against the eroding purchasing power of currencies (mainly the U.S. dollar) due to inflation. - Diversifying portfolios
Gold has an inverse correlation with the U.S. dollar. When the dollar falls in value, gold prices tend to rise, protecting central banks from volatility.
The Switch from Selling to Buying
In the 1990s and early 2000s, central banks were net sellers of gold.
There were several reasons behind the selling, including good macroeconomic conditions and a downward trend in gold prices. Due to strong economic growth, gold’s safe-haven properties were less valuable, and low returns made it unattractive as an investment.
Central bank attitudes toward gold started changing following the 1997 Asian financial crisis and then later, the 2007–08 financial crisis. Since 2010, central banks have been net buyers of gold on an annual basis.
Here’s a look at the 10 largest official buyers of gold from the end of 1999 to end of 2021:
Rank | Country | Amount of Gold Bought (tonnes) | % of All Buying |
---|---|---|---|
#1 | 🇷🇺 Russia | 1,888 | 28% |
#2 | 🇨🇳 China | 1,552 | 23% |
#3 | 🇹🇷 Türkiye | 541 | 8% |
#4 | 🇮🇳 India | 395 | 6% |
#5 | 🇰🇿 Kazakhstan | 345 | 5% |
#6 | 🇺🇿 Uzbekistan | 311 | 5% |
#7 | 🇸🇦 Saudi Arabia | 180 | 3% |
#8 | 🇹🇭 Thailand | 168 | 2% |
#9 | 🇵🇱 Poland | 128 | 2% |
#10 | 🇲🇽 Mexico | 115 | 2% |
Total | 5,623 | 84% |
Source: IMF
The top 10 official buyers of gold between end-1999 and end-2021 represent 84% of all the gold bought by central banks during this period.
Russia and China—arguably the United States’ top geopolitical rivals—have been the largest gold buyers over the last two decades. Russia, in particular, accelerated its gold purchases after being hit by Western sanctions following its annexation of Crimea in 2014.
Interestingly, the majority of nations on the above list are emerging economies. These countries have likely been stockpiling gold to hedge against financial and geopolitical risks affecting currencies, primarily the U.S. dollar.
Meanwhile, European nations including Switzerland, France, Netherlands, and the UK were the largest sellers of gold between 1999 and 2021, under the Central Bank Gold Agreement (CBGA) framework.
Which Central Banks Bought Gold in 2022?
In 2022, central banks bought a record 1,136 tonnes of gold, worth around $70 billion.
Country | 2022 Gold Purchases (tonnes) | % of Total |
---|---|---|
🇹🇷 Türkiye | 148 | 13% |
🇨🇳 China | 62 | 5% |
🇪🇬 Egypt | 47 | 4% |
🇶🇦 Qatar | 33 | 3% |
🇮🇶 Iraq | 34 | 3% |
🇮🇳 India | 33 | 3% |
🇦🇪 UAE | 25 | 2% |
🇰🇬 Kyrgyzstan | 6 | 1% |
🇹🇯 Tajikistan | 4 | 0.4% |
🇪🇨 Ecuador | 3 | 0.3% |
🌍 Unreported | 741 | 65% |
Total | 1,136 | 100% |
Türkiye, experiencing 86% year-over-year inflation as of October 2022, was the largest buyer, adding 148 tonnes to its reserves. China continued its gold-buying spree with 62 tonnes added in the months of November and December, amid rising geopolitical tensions with the United States.
Overall, emerging markets continued the trend that started in the 2000s, accounting for the bulk of gold purchases. Meanwhile, a significant two-thirds, or 741 tonnes of official gold purchases were unreported in 2022.
According to analysts, unreported gold purchases are likely to have come from countries like China and Russia, who are looking to de-dollarize global trade to circumvent Western sanctions.
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