Apple watch to boost gold prices?

The smartwatch, which will connect with Apple users' other devices and offer a string of new functions through innovative apps, will cost a hefty sum for iFans. Apple, though, is hoping that customers will spend even more to secure their premium model: the Apple Watch Edition.

The high-end device will be clad in 18-carat gold and will be priced from approximately £8,000. The model, which goes on sale 24th April, is expected to be a hit, with Apple planning to produce as many as 1 million units each month.

The quantity of gold required to make the watch cases, though, could prove a significant influence upon the global precious metal mark.

"If some of the sales and gold content projections are correct, the gold Apple Watch could soon gobble up nearly a third of the world's gold production," says MoneyMorning.com.

"That much new demand would be the biggest gold price catalyst we've seen in years."

Indeed, the largest buyers of gold are currently China and India. In 2014, India consumed 842 tonnes of gold, followed by China (813 tonnes). Apple could soon consume as much as 746 tonnes per year to make its gold watch, ranking it as the third biggest consumer of the precious metal worldwide: almost on a par with the whole of China.

The forecast follows a downturn in gold prices. Indeed, the precious metal has enjoyed a boost in its values thanks to economic uncertainty Europe, but is also struggling against the improving US economy and strengthening dollar, which are both attracting investors ahead of the precious metal.