WGC Report Analyzes Evolution of Gold Market Over the Next 30 Years

SEATTLE (Scrap Monster): The World Gold Council (WGC) has published a new report that analyzes how the world gold market is likely to shape up over the next 30 years period. The report titled “Gold 2048: The Next 30 Years for Gold” foresees the ways in which the world and the gold market may develop during this period.

According to the report, the rapid expansion of middle class in India, China and elsewhere coupled with strong economic growth is likely to boost the demand for gold. The report foresees increased use of gold in technology sector, as the world becomes more digital and connected. WGC predicts wide acceptance of mobile applications, especially in China and India, which in turn will facilitate individuals to buy and sell gold according to their convenience and wish. Further, it may be extremely challenging for gold mining industry to produce similar levels of gold in the next 30 years as it has produced during recent years.

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WGC expects Chinese economy to mature and develop and mature in a measured way. The country’s nominal GDP will touch $63 trillion by 2025 and increase further to reach $160 trillion by 2050. On the other hand, India has the potential to become the fastest-growing economy in the world over the next three decades. The aggregate purchasing power of Indian middle class will create one of the largest markets in the world. Incidentally, China and India are the world’s two largest gold consumers.

Gold production has almost doubled in the past 30 years, but the trend is unlikely to continue. The rate at which gold is being discovered has recorded tremendous decline over the recent years. WGC notes that there has been a distinct lack of ‘world-class’ discoveries. Moreover exploration costs have escalated. Based on the above factors, WGC expects significant decline in global gold mine supply over the longer term.