WGC Launches Innovative Tool to Assess Gold’s Performance

SEATTLE (Scrap Monster):  The World Gold Council (WGC) announced introduction of a new web-based quantitative tool, which aims to help investors with analyzing the drivers of gold’s performance.

The new tool, Qaurum, uses a three-step procedure to assess gold’s reaction to various economic environments. The tool offers a hypothetical macroeconomic scenario powered by Oxford Economics for investors to select from. It then generates gold demand and supply forecasts by highlighting the impacts of key micro drivers. In the third stage, the analytical tool calculates and visualizes implied gold returns. In short, the tool will help investors calculate the impact of various macroeconomic and geopolitical environments on implied performance on gold over a period of up to 30 years from now.

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Juan Carlos Artigas, project lead noted that the new platform does not forecast gold price, but helps investors understand the connection between demand, supply as well as economic and geopolitical events. It also highlights the drivers of gold performance, he added.

As per market analysts, the launch of Qaurum is being viewed as an important step forward in WGC’s ongoing efforts to reinforce gold as a mainstream asset. The difficulty to fully value gold has been a major reason for investment funds and managers to shy away from gold. The new tool is expected to help address this issue.

Qaurum is powered by the Gold Valuation Framework (GVF) methodology.