Gold investment market geared for growth – WGC
JOHANNESBURG (miningweekly.com) – The global gold bars and coins market has boomed considerably in the past decade, with the investment market well positioned for growth, a new report by the World Gold Council (WGC) shows.
The ‘Global investment market: new perspectives on consumer behaviour’ report shows a surge in demand for gold bars and coins from 430 t, with a value of just under $10-billion, in 2006, to 1 051 t in 2015, equating to $40-billion in monetary terms.
The growth is attributed to a number of factors, including the opening up of new markets, such as in China, for example, where, prior to 2004, it was illegal for individuals to own gold bullion.
The global retail investment market is now well positioned for further growth, with a WGC comprehensive research programme scrutinising gold-buying behaviour across the major markets, revealing latent demand for gold in China, India, Germany and the US.
Gold has a “particular strength” in the role of wealth protection, underpinned by its perceived stability and its independence from the financial system.
“Gold is unique among investments in delivering rational, as well as emotional security. Gold is appreciated for being a stable place to invest money, resilient in the face of the volatility present in financial markets today, while its physical tangibility makes investors feel secure,” the WGC explained.
Capitalising on these positive sentiments opens up untapped potential; however, a more “targeted” approach will be required to attract investors.
“Converting this latent demand will not be easy. Retailers will need to carefully consider investors’ attitudes to risk, investment needs and how people gather information before making an investment decision,” the council pointed out.
The report pointed to developed market investors being more conservative, valuing simplicity and convenience, and not viewing gold as an easy routine investment.
Mitigating this perception will require allaying concerns around high-value entry points and a lack of flexibility.
In developing markets, there was work to be done to position gold as a lower-risk way of achieving long-term returns, and to take the share of investments away from stocks and shares, the WGC added.
“Seamless integration of online and offline gold experiences can act as a unique differentiator and will be critical to engaging digitally-savvy millennials for the future,” the council pointed out.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation