WHAT IS 'World Gold Council - WGC'

The World Gold Council or the WGC is a nonprofit association of the world's leading gold producers. A market development organization for the gold industry, the World Gold Council includes 25 members and many members are gold mining companies. The WGC was established to promote the use of and demand for gold through marketing, research and lobbying. Headquartered in London, the WGC covers the markets which comprise about three-quarters of the world's annual gold consumption.

BREAKING DOWN 'World Gold Council - WGC'

The WGC is an advocate for gold consumption. The WGC aims to maximize the industry's potential growth by monitoring and defending existing gold consumption. It also co-sponsors research in the development of new uses of gold, or of new products containing gold. For example, successful projects supported by the gold industry have led to the development of jewelry containing 99% gold. The organization's specific purpose is to stimulate and sustain the demand for gold.

The Story of Gold

Gold traces its origins to Ancient Egypt, where they first smelted gold around 3600 B.C.E. Today, gold is sought after for investment purposes and is also used in the manufacturing of numerous electronic and medical devices. Much of the world's gold was mined in the modern, postwar era and gold-mining operations take place on every continent except Antarctica. In recent decades, more countries have emerged as gold producers. As a result, gold mining has become less geographically concentrated and more stable. Today, the top producing countries are China, Australia, Russia, the U.S., Canada, South Africa and Peru.             

The WGC and Investing in Gold

Gold is attractive as a commodity and an investment. Because gold has non-monetary uses, such as jewelry, electronics and dentistry, it retains a minimum level of real demand. It is also impossible to perfectly counterfeit and has a fixed stock; there is only so much gold on Earth, and inflation is limited to the speed of mining.

The WGC was the creator of the first gold exchange-traded fund. An exchange-traded fund or ETF is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike a mutual fund, an ETF trades like a common stock on a stock exchange. Considered an attractive alternative investment for individual investors, ETFs typically have higher daily liquidity and lower fees than mutual fund shares. In fact, ETFs experience price changes throughout the day as they are bought and sold. Gold experts manage the GLD ETFs, increasing the likelihood of a positive investment.
 

RELATED TERMS
  1. Gold Fund

    A gold fund is an alternative way for investors to own gold without ...
  2. Gold Reserve Act Of 1934

    The Gold Reserve Act of 1934 is an act that took away title to ...
  3. Reverse Gold ETF

    A reverse Gold ETF is an exchange traded fund, or ETF, designed ...
  4. Gold Certificate

    A physical document resembling a paper bank note that entitles ...
  5. Legacy Hedge

    A legacy hedge is a long-term hedge position, often held by producers ...
  6. Smithsonian Agreement

    The Smithsonian Agreement was a deal reached in 1971 among the ...
Related Articles
  1. Investing

    Fee War Makes Its Way to Gold ETFs

    A new lower-cost gold ETF is on the horizon.
  2. Investing

    Does it Still Pay to Invest in Gold?

    Gold's appeal dates back thousands of years and investors now have several different options when it comes to investing in the royal metal. Find out whether gold can live up to the hype.
  3. Investing

    What Drives The Price Of Gold?

    Gold prices are based on the economy and actual uses, but there are many other factors that dictate gold's perceived value.
  4. Investing

    Gold: The Other Currency

    Throughout history, gold has held its value against paper currencies. Learn how it can help offset market risks.
  5. Investing

    Which Gold ETF Should You Own?

    Now may be a good time to get into gold ETFs. Here's how to do so, and which ETFs should be considered the best bet.
  6. Investing

    Pinch Pennies With a New Gold ETF

    A new gold ETF is cheap and related to one of the most venerable funds in this arena.
  7. Investing

    How Much Disaster Can Gold Hedge?

    Gold holds up well in the face of fear, but offers little in times of true collapse.
  8. Investing

    Not All That Glitters Is Worth Owning, Especially Gold

    What's the better investment for the long term, gold or equities?
  9. Financial Advisor

    The Effect of Fed Fund Rate Hikes on Gold

    Explore the historical relationship between interest rate increases and the price of gold, and consider what effect a fed funds rate hike might have on gold.
  10. Investing

    The Top 5 Gold Equity Mutual Funds for 2016

    Discover five gold equity mutual funds that specialize in investing in companies that are engaged in mining, processing, fabricating or distributing gold.
RELATED FAQS
  1. Which country has the most gold?

    Learn which countries hold the most in gold reserves, and explore the reasons holding gold may be beneficial to a country's ... Read Answer >>
  2. What criteria classify a company as a junior gold miner?

    Learn about junior gold miners, companies that exclusively mine for gold. These firms typically rely on venture capital and ... Read Answer >>
  3. Does Warren Buffett invest in gold? Why or why not?

    Discover what Warren Buffett's investment stance is toward gold and silver, why he likes one of them a lot and the other ... Read Answer >>
Hot Definitions
  1. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  2. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  3. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  4. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  5. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
  6. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
Trading Center