Research library

In 2015 India was the world’s fast growing economy; in recent years millions have been lifted out of poverty and India’s middle class has swelled. This is important because our econometric analysis indicates income growth drives gold demand. 

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. 

The global gold bar and coin market has boomed in the past 10 years. Several factors have underpinned this growth, perhaps the most important being that successive financial crises have tested investors’ faith in governments, banks, monetary policies and fiat currencies around the world.

Financial markets have fallen sharply in response to Donald Trump’s election as the 45th President of the United States. Equity markets are down notably in Asian and early European trading.

On November 2, 2016 the gold price broke above US$1,300/oz for the first time since early October, as the surprise announcement last Friday October 28th by the FBI relating to Clinton’s email probe, injected a new wave of uncertainty into the presidential election.

In the autumn edition of Gold Investor, Mohamed El-Erian, chief economist at global insurer Allianz and former CEO of PIMCO assesses the challenges faced by the global investment community and the contribution that gold can make within investment portfolios. 

Gold coins are intrinsic to gold demand, not just in India, but across the world. In most countries that have an affinity with gold however, that relationship is symbolised by a sovereign gold coin.

Following a remarkable performance year-to-date, the gold price fell by over 3% on 4 October, taking it below US$1,300/oz for the first time since the Brexit announcement in June 2016.

Continued growth in Q2 2016 (+15%) brought total H1 gold demand to 2,335t – the second highest first half on record.