https://www.miningweekly.com

World Gold Council introduces new gold analytic tool

15th January 2020

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

The World Gold Council (WGC) has introduced a pioneering methodology and analytic tool, called Qaurum, to provide greater clarity around the drivers of gold’s performance.

Qaurum is a Web-based tool designed to deliver a robust quantitative approach to analysing how gold may react under diverse macroeconomic and geopolitical conditions.

Behind a user-friendly interface, Qaurum is powered by the Gold Valuation Framework (GVF), an academically validated methodology based on the principle that the price of gold and its performance can be explained by the interaction of demand and supply.

GVF and Qaurum were developed in response to research suggesting that institutional investors cite the lack of an established approach to valuing gold as a key barrier to investment, the council said on Wednesday.

“One of the WGC’s key mandates is to reinforce gold as a mainstream investment asset,” chief market strategist John Reade commented, adding that Qaurum is “an important step in that direction” because it provides investors with a framework for evaluating the metal’s performance.

This, Reade noted, empowers more incisive decision-making around strategic and tactical allocation decisions.

Qaurum is accessible from Goldhub.com and empowers investors to assess how gold might react across different economic environments through either selecting a hypothetical macroeconomic scenario provided by Oxford Economics, or through generating forecasts of demand and supply and view the impact of key macro drivers.

Qaurum also allows investors to calculate and visualise implied returns for gold.

The scenarios from Oxford Economics are updated quarterly to reflect timely and relevant considerations.

“Because gold has a unique dual nature as both a consumer good and an investment, some view its performance as unpredictable,” initiative project lead Juan Carlos Artigas said.

He explained that Qaurum “does not forecast the gold price” but rather “helps investors intuitively understand” gold’s drivers and the connection between demand, supply, as well as financial, economic and geopolitical events.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION