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.