GOLD - Future Perspectives
31 July 2020
Original content provided by BDO
The use and value of Gold can be tracked back as far as 4000 BC. The first gold coins were introduced in 560 BC in Lydia (and Iron Age Kingdom) and were used as currency before the introduction of paper.
Gold continues to play an important role in our global economy, including use in technology, jewellery and bricks to store value in times of adversity.
Gold has emotional, cultural and financial value and different people across the globe buy Gold for different reasons, often influenced by national socio-cultural factors, local market conditions and wider macro-economic drivers.
With the onset of the global pandemic, Gold's once placid place and price has been woken. Demand for Gold rose 36% in Q1 2020 due to safe-haven buying by Western retail investors, albeit jewellery demand fell to the lowest record in Q1 2020, led by a 65% decline in China - the largest jewellery consumer and first market to succumb to the outbreak.
With that said, Gold continues to be a solid investment commodity which has delivered positive returns over the long-run, out-performing the key asset classes.
To learn more about Gold and the drivers that are influencing it's awakening, please download our Gold - Future Perspectives Report.