World Gold Council - Explained
What is a World Gold Council?
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Table of ContentsWhat is the World Gold Council?How Does the World Gold Council Work?The Story of Gold The WGC and Making Gold Investments
What is the World Gold Council?
The World Gold Council, with its headquarters in London, is a nonprofit organization of the finest gold producers of the world. It works as a market development association for the gold sector, and consists of 25 members, among which there are many gold mining corporations. The main objective behind the establishment of WGC was to encourage the demand for and utilization of gold with the help of research, marketing, and lobbying. The World Gold Council includes the markets that consume around 75% of annual gold globally.
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How Does the World Gold Council Work?
The WGC is associated with the consumption of gold. Its objective is to boost the growth of the industry by analyzing and safeguarding the consumption of present gold, and to encourage the demand for gold. Also, it strives to devise new methods of using gold, and manufacturing gold-based products. For instance, the support received from the gold industry for several projects has resulted in the creation of jewelry having 99% gold.
The Story of Gold
Gold was founded in Ancient Egypt where its first smelting took place around 3600 B.C.E. Nowadays, people invest in gold, and further use it for producing several electronic and medical equipment. Majority of the worlds gold was found in the modern era. Every continent except Antarctica mines gold. In the past 10 years, lots of countries have started producing gold. This has made gold mining more geographically dispersed as well as stable. The exclusive list of top gold producers includes China, the U.S., Peru, South Africa, Canada, Russia, and Australia.
The WGC and Making Gold Investments
One can use gold both as an investment and a commodity. Because of its non-monetary purposes, it succeeds in maintaining a standard level of demand. It is not possible to create its replica, and includes a fixed stock. The very first gold-exchange traded funds was formulated by the WGC. An exchange traded-fund keeps a track record of an index, bonds, commodities, or a group of assets such as an index fund. It is different from a mutual fund, and can be traded as a common stock in a stock market. ETFs are deemed to be a lucrative investment for small investors. They are highly liquid and charge lesser fees as compared to mutual funds. During the process of buying and selling, ETFs undergo price fluctuations all around the day. Gold analysts control the GLD ETFs. This increases the chances of turning their investment into a lucrative one.