In 1987, the world's major gold mines set up the World Gold Council. The WGC's mandate is to develop the world's gold markets. It is owned by 22 of the world's largest gold mines, including 8 of the world's top 10 producers (Barrick, Newmont, AngloGold Ashanti, Gold Fields, Kinross, Goldcorp, Yamana, Agnico-Eagle).
The reason WGC was set up was that there was a lack of marketing effort by the industry in general - and for a simple reason. Because there is no difference between gold wherever it is mined it turned out that marketing gold tended to benefit all gold producers at the exclusive cost of any one producer which might make the marketing effort. This meant that no miner would market gold on its own budget.
So the miners pooled their marketing budgets and assigned them to the jointly owned and funded World Gold Council, which could promote the consumption of real physical gold for their common benefit. It has since been funded with a levy on its members, applied per ounce of gold they mine, and has of itself become a highly profitable business through the creation of the world's largest Exchange Traded Fund (holding over US$70 billion in assets) and partnering with the world's largest bank – ICBC – to launch a new savings product in China (more than 1.5 million accounts were opened in the first 9 months).
Based in London, and with operations in India, the Far East, Turkey, Europe and the United States, the WGC works within the investment, jewellery and technology sectors, as well as engaging in government affairs. The WGC has for many years also been the main producer of gold analysis and market related data. It is a true global force in gold.
The WGC shares with us the opinion that there is a significant investor need for directly owned retail investment gold.
© BullionVault.com 2012 - Buy gold online at live gold prices.