what is World Gold Council and its work

What is World Gold Council (WGC)? (Detailed Guide)

World Gold Council (WGC) is a joint group of leading Gold Mining companies worldwide. WGC was formed in 1987, and it's headquartered in London. Apart from London, World Gold Council also has offices in New York, Shanghai, Singapore, Mumbai, and Beijing.

Note: WGC was also behind the first-ever gold Exchange Traded Fund (ETF) creation.

What does the World Gold Council do?

  • The WGC helps support its members (mostly mining companies) to mine responsibly to maintain a conflict-free gold standard.

  • World Gold Council's main objective is to promote the use of Gold. It advocates strongly for the consumption of Gold. 

  • WGC maintains the demand for Gold using marketing, research, and lobbying. 

  • The main agenda of WGC is to maximize the industry potential and to defend the existing gold consumption.

Who are the members of the World Gold Council?

The WGC is a non-profit association; most WGC members are mining companies. The WGC has 33 members. The WGC and its member share their vision of ensuring a sustainable gold mining industry based on their deep understanding of Gold's role in society, now and in the future.

Who is the CEO of the World Gold Council?

David Tait has been the CEO of the World Gold Council London since 2019. David was appointed CEO of the World Gold Council in November 2018. David began his career trading at Goldman Sachs, then moved to Credit Suisse.

Is the World Gold Council legit?

The WGC is a legitimate and valid authority on gold exploration. They work to ensure the stability of the unique gold market and maintain the relevance of Gold today and in the future.

World Gold Council Report 2023

Based on the World Gold Council report for the first quarter of 2023, it was a mixed picture. Central banks continue to buy Gold to increase their foreign reserves. However, it's exciting to see that even with a downturn in demand from India and a less-than-ideal contribution from ETF, there has been a steady increase in purchases from our enthusiastic Chinese customers.

Here are some key points from the World Gold Council 2023 Q1 Report

  • Central banks experienced significant growth in gold demand, adding 228 tonnes to global reserves during the quarter.

  • Bar and coin investment increased 5% year-on-year to 302 tonnes, with regional variations.

  • Global jewelry consumption remained virtually flat at 478 tonnes.

  • Q1 gold demand (excluding OTC) was 13% lower year-on-year at 1,081 tonnes.

  • Total gold demand, including OTC, strengthened by 1% year-on-year to 1,174 tonnes.

  • Net negative demand for ETFs was -29 tonnes, a significant decline compared to the inflows seen in Q1'22.

  • Gold use in the technology sector suffered, with demand slumping to 70 tonnes, the second-lowest quarter since 2000.

  • Modest growth in mine production (+2%) and recycling (+5%) led to a slight increase in total gold supply for Q1 2023. Higher gold prices influenced the rise in recycling.

Conclusion:

Origins of Gold could be easily traced back to Ancient Egypt, about 3600 B.C.E. Gold is not just for investment purposes. Still, it is also used in manufacturing medical and electronic devices. Most of the world's Gold was mined after World War 2. In the past few decades, many new countries have joined the list of gold producers. Thus, gold mining operations took place on almost every continent. It was wise to have an association to stimulate and sustain the gold demand.

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olivia johnson 27 Jul, 2023

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