A substantial new piece of research conducted by the World Gold Council has confirmed risk management as the overwhelming trigger for gold investment. Described as the largest ever consumer survey of the global gold market, a total of 18,000 participants contributed to the data set which covered the US, China, India, Canada, Russia and Germany.
The report authors confirm that its findings show “Globally, there are clear perceptions of gold as a safe, durable, traditional store of value. As an investment, it plays to these strengths – retail investors buy it to protect wealth and create long term returns.”
The report also found remarkably high levels of trust in gold with many favouring gold over national currencies. In India for example, the research demonstrates that 75% of investors trust gold more than traditional currencies, 69% of Chinese investors share that sentiment along with 60% of US investors. The World Gold Council explains, “Gold creates a feeling of safety and security. The majority of retail investors and fashion and lifestyle consumers trust gold more than the currencies of countries.”
Almost seven in ten investors consider gold to be a safeguard against inflation and currency fluctuations, while 65% say that gold will never lose its value over the long term. This confirms the commonly accepted reasoning of gold as a safe haven asset and safe long term store of wealth in the face of increasingly unstable geopolitical and economic events.
The consumer research also shows that gold is transcending generations with those aged 18-38 increasingly turning to gold investment. 34% of this demographic have now invested in gold within the last 12 months, and 46% say they “definitely” will in the future.