United Kingdom: Gold Market 2024

Gold Market Size in the UK

In 2021, after two years of growth, there was significant decline in the UK gold market, when its value decreased by -35.1% to $X. In general, consumption, however, saw a pronounced increase. Over the period under review, the market attained the peak level at $X in 2020, and then contracted significantly in the following year.

Gold Production in the UK

In value terms, gold production contracted to $X in 2021 estimated in export price. Over the period under review, production continues to indicate a slight descent. The most prominent rate of growth was recorded in 2017 when the production volume increased by 5.6% against the previous year. Over the period under review, production hit record highs at $X in 2013; however, from 2014 to 2021, production stood at a somewhat lower figure.

Gold Exports

Exports from the UK

In 2021, shipments abroad of gold increased by 89% to X tons for the first time since 2018, thus ending a two-year declining trend. Overall, exports posted a buoyant increase. The pace of growth appeared the most rapid in 2013 when exports increased by 764%. As a result, the exports attained the peak of X tons. From 2014 to 2021, the growth of the exports remained at a somewhat lower figure.

In value terms, gold exports surged to $X in 2021. In general, exports saw significant growth. The most prominent rate of growth was recorded in 2013 with an increase of 3,318%. As a result, the exports attained the peak of $X. From 2014 to 2021, the growth of the exports remained at a somewhat lower figure.

Exports by Country

Switzerland (X tons) was the main destination for gold exports from the UK, accounting for a 81% share of total exports. Moreover, gold exports to Switzerland exceeded the volume sent to the second major destination, Germany (X tons), more than tenfold. The third position in this ranking was held by Singapore (X tons), with a 4.8% share.

From 2012 to 2021, the average annual growth rate of volume to Switzerland stood at +56.9%. Exports to the other major destinations recorded the following average annual rates of exports growth: Germany (+36.4% per year) and Singapore (+70.9% per year).

In value terms, Switzerland ($X) remains the key foreign market for gold exports from the UK, comprising 81% of total exports. The second position in the ranking was held by Germany ($X), with a 5.8% share of total exports. It was followed by Singapore, with a 5% share.

From 2012 to 2021, the average annual growth rate of value to Switzerland stood at +61.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: Germany (+49.4% per year) and Singapore (+76.3% per year).

Export Prices by Country

The average gold export price stood at $X per kg in 2021, picking up by 2.2% against the previous year. In general, the export price showed a prominent expansion. The pace of growth was the most pronounced in 2013 an increase of 296% against the previous year. Over the period under review, the average export prices attained the maximum in 2021 and is expected to retain growth in years to come.

Average prices varied noticeably for the major overseas markets. In 2021, amid the top suppliers, the countries with the highest prices were Singapore ($X per kg) and Germany ($X per kg), while the average price for exports to the United Arab Emirates ($X per kg) and the Czech Republic ($X per kg) were amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to the Czech Republic (+60.6%), while the prices for the other major destinations experienced more modest paces of growth.

Gold Imports

Imports into the UK

In 2021, the amount of gold imported into the UK dropped remarkably to X tons, with a decrease of -38.4% on 2020. Over the period under review, imports, however, showed significant growth. The pace of growth was the most pronounced in 2016 when imports increased by 234%. Imports peaked at X tons in 2019; however, from 2020 to 2021, imports stood at a somewhat lower figure.

In value terms, gold imports dropped remarkably to $X in 2021. In general, imports, however, enjoyed significant growth. The pace of growth was the most pronounced in 2016 with an increase of 259%. Imports peaked at $X in 2020, and then fell notably in the following year.

Imports by Country

Russia (X tons), Canada (X tons) and the United States (X tons) were the main suppliers of gold imports to the UK, with a combined 63% share of total imports. Switzerland, Kazakhstan, South Africa, Uzbekistan, Australia, Brazil and Germany lagged somewhat behind, together comprising a further 26%.

From 2012 to 2021, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Kazakhstan (with a CAGR of +107.0%), while imports for the other leaders experienced more modest paces of growth.

In value terms, the largest gold suppliers to the UK were Russia ($X), Canada ($X) and the United States ($X), with a combined 62% share of total imports. These countries were followed by Switzerland, Kazakhstan, South Africa, Uzbekistan, Australia, Brazil and Germany, which together accounted for a further 26%.

Australia, with a CAGR of +251.5%, saw the highest growth rate of the value of imports, in terms of the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the average gold import price amounted to $X per kg, approximately reflecting the previous year. In general, import price indicated a tangible expansion from 2012 to 2021: its price increased at an average annual rate of +3.5% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, gold import price increased by +56.0% against 2015 indices. The most prominent rate of growth was recorded in 2020 an increase of 27% against the previous year. As a result, import price reached the peak level of $X per kg, and then declined in the following year.

Average prices varied noticeably amongst the major supplying countries. In 2021, amid the top importers, the highest price was recorded for prices from Germany ($X per kg) and Australia ($X per kg), while the price for the United States ($X per kg) and Kazakhstan ($X per kg) were amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Uzbekistan (+12.5%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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