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Introduction to World Gold Council (WGC) | How WGC works?

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Introduction to World Gold Council (WGC) | How WGC works?

Nature and History of the World Gold Council On the World Gold Council website, this organization is known as a promoter of gold consumption. Therefore, its main activities are focused on marketing, market research and development, and programs to create and maintain demand for gold. This organization mainly focuses on markets such as America, Europe and India, where about three-quarters of the world’s gold consumption takes place.

Introducing the World Gold Council (WGC) and its role in gold mining

Goals and plans of the World Gold Council

In short, the main objective of the World Gold Council is to create, develop and maintain the demand for this metal through the collection of data and statistics on its status in various sectors of the economy. This information covers the stages of mining to the stock status of companies producing jewelry and gold-related products.

WGC has special programs to create new uses for gold or produce new products based on this metal. This organization enters into negotiations and development of joint projects with other companies and research institutions.

Other activities of the World Gold Council include:

  1. Providing advice to banks, governments and financial institutions to better understand the role of gold in the economy.
  2. Determination and development of gold production and delivery standards (Good Delivery Rules) and Conflict Free Gold Standard.
  3. Determining standards for maintaining the health and rights of mine workers.
  4. Development of gold trading standards in Islamic markets called AAOIFI Shari’ah.
  5. Determining environmental standards known as ESG to reduce damage to nature in the process of gold mining and production.
  6. Educational programs for investing in gold and related products such as gold digital currency.

Members of the World Gold Council

Members of the World Gold Council

The World Gold Council is formed in cooperation with dozens of large companies active in the industry of extracting and selling precious metals. Some of its important members are:

BARRICK: The largest gold mining company in the world with an American nature and mines around the world.

Franco-Nevada: The second largest gold mining company in the world with offices in New York and Toronto and also active in the field of oil, gas and platinum-based metals production.

ANGLOGOLD ASHANTI: The third largest gold mining company, based in South Africa.

AGNICO EAGLE: International precious metal mining company in Canada, Mexico, Finland and USA.

ALAMOS GOLD INC: International precious metal mining company in Canada, Mexico and Turkey.

AURA 360 MINING: Gold mining and production company in America.

Newmont: American company with mines around the world and one of the largest producers of gold, silver, copper and zinc in the world.

China Gold: The largest gold producer in China.

The impact World Gold Council on the global economy

The summary of the most important analyzes of the World Gold Council is published in its quarterly magazine called the gold demand trend report. This report is a main source for private companies and even governments in formulating their monetary policies and investments. In this document, analyzes are presented about the latest situation of gold supply and demand in the world. The analyzes provided by the World Gold Council play an important role in creating transparency and stability in the market of this metal and therefore in the global economy. For this reason, understanding the role of this organization is very crucial for investors, traders of all financial markets and economic entities.

Economic programs and products of the World Gold Council

As can be expected, the World Gold Council has big plans to develop investment in this commodity. Wide applications, stable inventory, and the increase in the price of this metal with more extraction are the most important reasons for the attractiveness of gold for investment by large companies. In this section, the most important activities of this organization for the development of investment in this metal are discussed.

A council to preserve gold in the modern world

The world economy is currently controlled more by private institutions and large companies, so that it is more in the hands of these institutions than in the hands of governments. In the gold mining, production and trading industry, large companies have consolidated their power to develop their market by establishing the World Gold Council. With the emergence of diverse and innovative financial markets such as digital currencies and the independence of fiat currencies from this metal, this council tries to keep gold in the investment portfolio. Regular analyzes of the gold market situation, creation and discovery of new markets and setting standards of this industry are among the activities of the WGC.