2,822 tonnes of gold were produced in 2011

Global gold production in 2011 reached 2,822 tons, a 7.9% increase over the previous year, according to the World Gold Council.
According to Bernard Dandin, analyst of french investment bank Natixis, 37% of the produced gold were  purchased in the form of coins and bars by individuals and 10% - by financial institutions. The rest was absorbed by industry, including jewelers as the main consumers, accounting for 43% of gold sales, and electronics sector, which utilized the remaining 10%.
Annual gold production to date is significantly lower than global demand needs. Together with the recycled gold, a total of 4,568 tonnes of the precious metal were sold in 2011. This is an increase of 10%, achieved due to a surge in demand for gold coins and bars, according to Dandin.
Almost all gold in the segment of "industrially oriented" - approximately 2,000 tons - was purchased by jewelers. Of this amount, 567 tonnes bought by Indians, french newspaper Le Figaro reported.
"Schematically, we can say that for the Chinese as the main producers gold is primarily an investment, and for the Indians - mostly  "a metal for jewelry", newspaper quoted an explanation of the french economist Philippe Chalmin.
According to Le Figaro, in the Western jewelers are buying much less gold. In 2011 the U.S. purchased only 115 tonnes of gold, while Europe bought 91 tonnes, including the share of France - a total of 18.1 tonnes.

Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished