Investing in gold
Welcome to the winter edition of Gold Investor, where leading market participants assess the relevance of gold against a backdrop of persistent geopolitical turmoil.
The World Gold Council’s leading industry publication on gold demand trends, analysed by both sector and geography for the fourth quarter and full year 2016.
India’s relationship with gold goes beyond income growth: gold is intertwined with India’s way of life. Our new report offers a comprehensive study of this dynamic market for gold.
In 2016, investors around the world returned in large numbers to the gold market, as a combination of macroeconomic drivers and pent up demand kept interest in gold high. As we start the new year, there are some concerns that US dollar strength may limit gold’s appeal. We believe that, on the contrary, not only will gold remain highly relevant as a strategic portfolio component, but also six major trends will support demand for gold throughout 2017.
In 2016 we concluded a comprehensive research programme investigating gold buying behaviour across the major markets – China, India, Germany and the US.
Gold has unique properties as an asset class. The diversity of gold-backed and gold-related products means that gold can be used to enhance a wide variety of individual investment strategies and risk tolerances.
Our analysis shows that gold can be used in portfolios to protect global purchasing power, reduce portfolio volatility and minimise losses during periods of market shock.
It can serve as a high-quality, liquid asset when selling other assets would cause losses.