Trade Body Focuses on Digitalisation of Global Gold Ecosystem
A standardised unit for gold in the digital space is one of the key agenda of the future, says World Gold Council (WGC).
David Tait, Chief Executive Officer, WGC, while elaborating on digitalisation of global gold ecosystem, noted that it could lead to creation of several new products. It aims to create standardised gold by translating all the different types, shapes and sizes using an algorithm, from where different products can be created, he added.
The products from standardised gold will offer huge investment opportunities to investment managers and asset managers across the globe. In addition, they could be used for different forms of lending and collateralisation. A global gold database would enhance transparency and authenticity of the metal.
The WGC chief observed that gold could be a fantastic hedge to equity declines. The trends have changed a lot during recent years, with no visible negative correlation between equities and gold. Nowadays, people are content to have a portfolio with equal weightage to gold as well as equities.
The gold trade body has been in efforts to create conducive environment for institutions to invest in gold without too much of a capital burden. The efforts to remove barriers and bring institutional monies to gold will bode very well for the demand and price of the yellow metal going forward.