"Worth its weight in gold" is what we say when we think something is very valuable, because gold is extremely durable and therefore particularly suitable for saving.
Rising demand
Gold was mined in many places in ancient times, usually under the supervision of the ruler at the time. The gold mined went to the treasury and was then processed. In the Middle Ages, about 80 percent of Europe's gold production was mined in Hungary, near Körmöcbánya in Transylvania. Production was around four tonnes a year in the mid-13th century, but by the early 14th century it had fallen to one and a half tonnes.

The total amount of gold mined in the world so far is 190 thousand tonnes. Today, more than 3 thousand tonnes of gold are mined worldwide every year. China is the largest producer, with 370 tonnes of gold mined last year, 12 percent of the global total. Australia and Russia share second and third place with 310-310 tonnes. They are followed by Canada and the US with 200 and 170 tonnes respectively. Kazakhstan, Mexico, Indonesia, South Africa and Uzbekistan also produce more than 100 tonnes of gold a year. World gold production is forecast to increase by 15 percent by 2032.
The mined gold is used as a raw material for gold jewellery, as currency or becomes famous treasures. Today, 46% of processed gold is still used to make jewellery, while 23% is held by central banks as the country's gold reserves. Gold bars accumulated in private property accounts for 16 per cent of all the gold in use, followed by coins with 9 per cent, while the electronics industry uses 5 per cent of all gold. Gold is also used in medicine, in dentistry, as decoration of luxury foods, to make one-way transparent reflective windows and in the manufacture of medical instruments. The Voyager space probes carry a message about humanity and the Earth engraved on gold-plated copper plates.
The price of gold is determined by supply and demand. Demand is strongly buoyant in times of global uncertainty, as seen in the aftermath of the COVID-19 pandemic, the Russian-Ukrainian war and climate change. This is pulling gold prices upwards from the 2018 price of 1300 USD per ounce to over 2500 USD per ounce by the summer of 2024. Demand is inelastic to the rise in the gold price. This increase in demand is mainly driven by increasing gold purchases by central banks and growing demand for gold in the Chinese market. If this continues, the gold price will rise further.
Currently, India is the world's biggest buyer of gold, followed by China. The demand for gold is shifting from the West to the East, as gold flows to where economic prosperity and savings are rising. There is an old saying that "gold goes where the money is".
Central bank gold reserves are on the rise

Central banks are among the largest owners of gold in the world, with more than 35,000 tonnes of gold owned by them. The largest gold reserve is held by the US, which holds more than 8,130 tonnes. Italy, France, Russia and China have gold reserves of over 2,000 tonnes. Japan, India, the Netherlands and Turkey have gold reserves of around 850 to 500 tonnes, while Portugal, Poland, Uzbekistan, the United Kingdom, Kazakhstan, Spain and Austria have reserves of around 380 to 280 tonnes.

In total, central banks have recently bought more than 1,000 tonnes of gold a year, almost a quarter of the worldwide demand, and this amount is still growing. In the last 5 years, the Chinese central bank has bought the most gold, 383 tonnes, followed by the Turkish, Polish, Russian and Indian central banks, each buying more than 200 tonnes. The Hungarian central bank has bought more than 90 tonnes of gold over this period, first quadrupling and then tripling its relatively small gold reserves due to our turbulent history.

According to a survey conducted in 2024, nearly 30 percent of the 70 central banks surveyed intend to increase their gold reserves next year, despite the rising exchange rate, because they want gold to represent a larger share of their total reserves than it does now. This is partly to protect against inflation and partly to protect against geopolitical risks. Central banks are looking for physical gold products, bars and coins, and more and more countries are repatriating some or all of their gold reserves that were previously stored abroad.
Follow the golden thread at the Money Museum

The Money Museum of the Central Bank of Hungary presents the economic, cultural and sacral uses of gold in a fun way, along with many interesting facts about the history of money alongside exciting, playable games. The interactive exhibition starts from the Gold Mine and follows a golden thread, where you can also have the unique experience of touching a real 24-carat gold bar worth more than 210 million Hungarian forints and admire the artwork made of fake gold bars, which commemorates the legendary gold train that saved our gold reserves! The exhibition is free of charge, but online registration is mandatory due to high interest. The museum tour can be topped off with a magnificent panoramic view from the roof terrace or with refreshments from the museum snack bar. The Money Museum is open every single day except on Tuesday!