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Definition

A marketing organisation of the 28 largest gold mining companies in the world operating in 45 countries. The organisations objective is to promote the purchase and use of gold. A large part of the demand for gold is jewellery and the council promotes the purchase of gold jewellery. A second major function of gold is as a reserve asset or asset of last resort. Central banks hold large quantities of gold. The US holds 8134 tons of gold, Germany 3364 tons, Italy 2452 tons, France 2436 tons, Russia 2300 tons and China 1948 tons. Central banks are large buyers of gold in some years. Private investors also buy gold as an asset of last resort. Demand for gold increases when international investment moves to "risk-off". But gold does not pay interest, dividends or rent - so investors generally move away from gold when they are feeling more confident (i.e when they are "risk-on").

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