It has been proven that gold mining has a positive impact on global economies as it offers job opportunities to many in excavation of the gold.
After the excavation, there are still the processes of distribution and export to accomplish. A lot of technology is required for this with a steady demand for skilled employees, which requires training for the workers. The local community is blessed with job opportunities wherever gold is mined.
Gold mining also brings in a lot of positive improvements, not only in the physical and financial areas, but also the social and legal infrastructures. There are many long-term advantages to gold mining. In the whole mining cycle, gold produced on a large scale can impact the economies and societies of developing nations positively.
Economic impact
Gold mining brings in huge tax contributions as part of the tax revenue for the nation in which it is being mined. It also creates jobs in many sectors, such as utilities. Gold production is able to double income from foreign exchange. A lot of revenue is generated wherever gold is mined, not only in the state but also in the community around it.
Hence, it is in the local government’s favor to sustain the gold mining industry by playing an active and vital role. It can hold forums and dialogues to educate the public as well as address the issue of sustainability for gold as faced by the various sectors, such as industry, people buying gold coins and society.
Social impact
The World Gold Council, having researched the effects of gold mining on society, has discovered that there is a need to balance the economic, social and environmental aspects that can be affected by gold production in the short and long terms. These are the challenges that must be addressed to ease the difficulties of the community.
Hence, all gold activities are monitored by the World Gold Council, together with its partners, to ensure a positive contribution towards sustainable development. Research is vital in developing the gold industry so that the correct decisions can be made which, in turn, favor sustainable outcomes which benefit society at large.
The Voluntary Principles established in the year 2000 with regards to security and human rights involved various governments, energy companies and NGOs on human rights. These Principles were developed to provide the safety and security measures to be followed by companies in their operations to ensure respect for human rights. They help to guide companies in identifying human rights as well as the security risks in any gold mining operation. They serve to bring about significant benefits to the society as well as the mining industry.
Monday, March 7, 2011
Market Intelligence on Gold
The World Gold Council has established its authority on most issues related to gold, such as its price, trends and uses. It is able to advise stakeholders and investors on the key market aspects of gold with sufficient analysis and authority. The right market intelligence is imperative for strategic decisions which may impact the economy.
The global demand for gold has always been centered on jewelry, technology, investment (buy gold coins) and reserves in central banks. Detailed and accurate analysis of the trends in the supply and demand of gold is crucial for all stakeholders.
Market Forces
There are many factors that impact gold’s value. One is the regional supply and demand that is dynamic like China’s gold consumption in 2009, which used 428 tons for its jewelry and investment sectors. Although China has been the largest gold producer in the world since 2007, its demand has overtaken its supply every year. If China’s demand for gold continues at this rate, its consumption will easily double within the next decade.
But in India, gold has always been an essential entity in the life of its people as a symbol of security and prosperity. Gold has always had appeal throughout the Indian community across social strata and generations, as gold jewelry is the favorite tradable liquid investment. India is currently the world’s leading consumer of gold. The trends in the demand and supply of gold, especially in countries such as India and China, will definitely impact the global gold market.
Investment Research
Research on gold and its trends is very important for investors who need to know the gold market dynamics and its investment properties as a premium asset. Investment papers examining the special characteristics of gold are published for stakeholders to identify gold’s value, its function as an inflation hedge and its diversification of portfolio for investment purposes.
Government think-tanks, industry experts and prominent academics work together to provide further insights into gold to advise central bankers, investors, regulators and even policymakers all over the world.
From these panels of experts on gold, it has been determined that gold is an asset class with high return potential at any risk level. The Center for European Policy Studies, through its research, also concluded that there will be other motives besides hedging against inflation to drive gold prices upwards. It could very well be Asia’s economic growth, which will display the higher demands for gold in the midst of an uncertain financial market. Hence, gold prices are expected to continue upwards as investment demand increases from the private sector as well as from the official investors.
Technological research is promoting gold not on in its electronic applications but also in climatic and environmental issues, where gold is effective in supporting emerging technological solutions.
The global demand for gold has always been centered on jewelry, technology, investment (buy gold coins) and reserves in central banks. Detailed and accurate analysis of the trends in the supply and demand of gold is crucial for all stakeholders.
Market Forces
There are many factors that impact gold’s value. One is the regional supply and demand that is dynamic like China’s gold consumption in 2009, which used 428 tons for its jewelry and investment sectors. Although China has been the largest gold producer in the world since 2007, its demand has overtaken its supply every year. If China’s demand for gold continues at this rate, its consumption will easily double within the next decade.
But in India, gold has always been an essential entity in the life of its people as a symbol of security and prosperity. Gold has always had appeal throughout the Indian community across social strata and generations, as gold jewelry is the favorite tradable liquid investment. India is currently the world’s leading consumer of gold. The trends in the demand and supply of gold, especially in countries such as India and China, will definitely impact the global gold market.
Investment Research
Research on gold and its trends is very important for investors who need to know the gold market dynamics and its investment properties as a premium asset. Investment papers examining the special characteristics of gold are published for stakeholders to identify gold’s value, its function as an inflation hedge and its diversification of portfolio for investment purposes.
Government think-tanks, industry experts and prominent academics work together to provide further insights into gold to advise central bankers, investors, regulators and even policymakers all over the world.
From these panels of experts on gold, it has been determined that gold is an asset class with high return potential at any risk level. The Center for European Policy Studies, through its research, also concluded that there will be other motives besides hedging against inflation to drive gold prices upwards. It could very well be Asia’s economic growth, which will display the higher demands for gold in the midst of an uncertain financial market. Hence, gold prices are expected to continue upwards as investment demand increases from the private sector as well as from the official investors.
Technological research is promoting gold not on in its electronic applications but also in climatic and environmental issues, where gold is effective in supporting emerging technological solutions.
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