Gold remains a shining asset with plenty of potential

World Gold Council says it’s still a go-to investment and there's an untapped market

Gold remains a shining asset with plenty of potential
Steve Randall

Gold has long been considered a safe haven investment but is its position losing some of its traditional lustre?

Not according to the World Gold Council which has published a new report highlighting the precious metal’s special place in investors’ hearts and the potential for growth from those who are yet to buy.

The survey included a sample of more than 18,000 across multiple markets including North America, Russia, China, India, and Germany. It says there is opportunity for those working in retail investment and jewellery.

It found that gold is the third most-consistently-bought investment with 46% of retail investors having gold assets, behind savings accounts (78%) and life insurance (54%).

But more than a third of retail investors have never bought gold but would consider it.

"The retail gold market is healthy, with gold being considered a mainstream choice,” said David Tait, Chief Executive Officer at the World Gold Council. “But what really excites me is the untapped part of the market: those people who have never bought gold but are warm to the idea of doing so in the future.”

What investors think

The survey found that 67% of all retail investors believe that gold is a good safeguard against both inflation and currency fluctuations, and 61% trust gold more than fiat currencies.

But 48% of investors who have not bought gold cited lack of trust as a significant barrier. That could be mistrust around fake or counterfeit bars and coins, product purity, or the trustworthiness of some retailers. 

“This market can flourish if we can build trust across the broad spectrum of gold products being sold and raise awareness around the positive role gold can play in protecting people's wealth," Tait added.