Gold investment research
Our statistical analysis examines how gold acts as a portfolio diversifier, vehicle for risk management and store of value. To explore our range of reports and publications, visit our Investment research library or review our featured publications below.
The latest edition of our Investment Commentary examines gold’s performance year-to-date and explores relevant macroeconomic factors that can influence gold’s performance into Q4 2014.
In our view, there are four main reasons investors should view gold as a valuable portfolio component today:
- Positive economic growth is supportive of gold’s long-term demand
- Rising interest rates do not necessarily push gold prices down
- Gold’s cost effectiveness makes it an attractive portfolio hedge compared to other strategies
- Constraints in mine production and falling gold recycling have kept the market in balance.
Previous issues of Investment Commentary:
This seventh edition of Gold Investor examines gold’s positive link to economic growth; explores its value as a hedge in times of duress; and discusses the impact that ETFs have had on the gold market.
This edition comprises:
The growth dividend: how rising GDP lifts gold consumer demand
Investors understand that in times of economic duress high-quality, liquid assets such as gold are in high demand. What is less understood is that the majority of gold demand is linked to consumption and long-term savings and not for speculative purposes. As an economy expands, incomes grow and gold demand increases – counterbalancing short-term investment flows.
A practical hedge: less exotic, multipurpose, lower cost
We analyse and compare multiple investment vehicles commonly used as tail-risk hedges. Our research finds a compelling case for gold as a valuable hedge. It is cost-effective, easy to implementation, and has a wide range of applications – even if its return during tail events is often lower than tailored (and often derivative-based) tail risk-mitigating strategies.
Ten years of gold ETFs: a wider and more efficient market
Gold-backed ETFs have become a US$70 billion dollar market – with holders of all sizes and types spread across various geographies. Yet, the advent of ETFs has benefitted other gold investors as well: they have increased demand, democratised access, increased competition for new and existing gold vehicles, and contrary to popular belief they have responded to rather than driven gold volatility higher.
Previous issues of Gold Investor:
Previously published research
The World Gold Council's investment research provides investors and industry analysts with in depth insights on:
- the unique investment properties of gold as a portfolio diversifier and store of wealth
- the underlying market dynamics and gold's growth drivers
Gold, the renminbi and the multi-currency reserve system
Gold as a strategic asset for UK investors
Gold as a strategic asset for European investors
Gold: alternative investment, foundation asset
The impact of inflation and deflation on the case for gold
Gold: a commodity like no other
Liquidity in the global gold market
Gold: hedging against tail risk
Gold performance analytics
Our analysis for each country includes domestic equities, regional equities (in the case of Europe), international equities (ex-Europe) and international bonds (both in domestic currency terms). For bonds, we use the Barclays Capital Aggregate/Bond Indices, a series of market capitalisation weighted bond indices. Country files contain: Price performance, volatility, 3- and 5-year correlation matrices, rolling correlation chart, rolling volatility chart, exchange rate effect chart, gold and local equity index price chart.
One area is devoted to comparative analysis of commodities.
Please refer to our notes on methodology for further details.