Gold is a mainstream choice for retail investors according to a recent World Gold Council survey which questioned 18,000 consumers and potential buyers across Asia, Europe and America about their attitudes toward the precious metal.
According to the findings, 46% chose gold, making it the third most consistently bought investment behind savings accounts (78%) and life insurance (54%).
Accounting for their motivation, more than two-thirds of those surveyed said they believed gold was a good safeguard against both inflation and currency fluctuations, while 61% indicated they trusted gold more than fiat currencies.
In search of a deeper understanding of behaviours, the survey also looked at the flipside, asking participants what put them off buying gold. For those open to gold but yet to purchase, there were a number of significant barriers.
Potential purchasers found engaging with the gold industry quite daunting, the report noted, citing lack of knowledge and experience made them nervous about entering the market.
Absence of trust also emerged as a significant barrier, with 48% saying that issue caused them to prevaricate. Fear of fake or counterfeit products was mentioned by 28% of this group, while 21% said they worried about purity. Another 14% said they didn’t trust businesses selling gold products.
Also colouring their judgment towards gold were perceptions about how easy it was to purchase. The report said that although we live in an era when people rely on hand-held devices to research and buy many goods and services, the gold industry was seen to be lagging others in its adoption and use of technology.
Do you have similar reservations?
A global leader in precious metals, The Perth Mint takes a proactive approach to understanding investors' needs, including the key question of trust.
One of the ways in which we are unique is our explicit government guarantee. Enshrined in law, it states that the Government of Western Australia, our sole owner, guarantees all our operations, undertakings and obligations in relation to our investment offerings and solutions
This exclusive guarantee allows us to pass on to clients peace of mind and certainty, gained from the knowledge that a highly rated sovereign entity fully underwrites all our offerings.
It has helped us to build an AUD 18 billion, fully integrated precious metal enterprise with expansive operations that begin in our refinery, one of the largest and most efficient in the world.
Did you know that The Perth Mint refinery is relied upon to process the majority of Australia’s newly mined gold and more than 12% of the world’s annual production? Or that it is accredited by all five of the world’s five major gold exchanges in London, New York, Shanghai, Tokyo and Dubai?
As well as manufacturing Australia’s official bullion coin program and a range of bars featuring our LBMA stamp, we’re continually developing new ways to combine the enduring appeal of precious metals with the convenience of technology.
In recent years we became the one of the first mints to facilitate online purchasing of retail investment products at live market prices.
For clients who prefer to hold precious metal within our network of high security vaults, the Depository Online initiative is a secure digital trading platform on which clients can buy and sell metal 24 hours a day, seven days a week.
With a new generation of predominantly younger investors in mind, our GoldPass smartphone app is now meeting demand for digital investments products. Offering the near-instant ability to buy, sell or transfer gold to other GoldPass users, the app’s digital certificates are an alternative to cryptocurrency investments.
In an exciting milestone, GoldPass now has over 10,000 registered account holders. Launched just a year ago, the secure trading app enables investors to buy, sell and transfer gold instantly at the touch of a screen.
Shared by our exchange-traded products including ASX-listed PMGOLD, these innovative solutions are not only covered by our government guarantee, but also come with the assurance that every client’s holding is 100%-backed by physical metal at all times - metal that can also be redeemed whenever it is required.
With the ability to offer these distinct solutions, The Perth Mint has attracted private investors, superannuation and pension funds, central banks and sovereign wealth funds – in total around 40,000 investment clients in more than 130 countries.
Paying heed to the issues raised by the potential gold buyers, we are committed to building on this success through a combination of trust, quality and continuous development of solutions that meet the needs of a diverse clientele.
