The Customer

  • Gold is a 100 billion dollar per year business.
  • India is the predominant buyer of gold jewelry but closely followed by China, United States, Dubai and The Arab Emirates.
  • Gold jewelry is based on the carat system with 24 carat gold being 99.9 percent pure. When buying jewelry, you can either buy 24, 18, 16 or 14 carat gold which means that whatever the difference between the carat you bought and 24 is the amount of other material is mixed in with the gold.
  • With only 40% of gold being sold to individuals the other 60% is bought by governments or investors.
  • There is an 80/20 split in the gold market meaning that 80% of revenue generated by gold is bought by 20% of the population. Due to high prices, gold is a status symbol in many cultures.
  • Gold is still mostly made into jewelry but investing in gold is a close second

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Social Impact of Customer

  • Since gold is such a social and prestigious medal, people all over the world will pay premiums for it. This makes the price of gold fluctuate impacting every aspect of the gold supply chain because the more that consumers are willing to pay for the end product the more the gold ore is worth in the beginning.
  • The consumers are the ones who drive the search for gold and with out them, this would not be a 100 billion dollar per year market.

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