Further high quality research and thought leadership on the role of gold globally from the World Gold Council. You can download the accompanying app by visiting: https://itunes.apple.com/gb/app/advanced-by-gold/id657418524?mt=8

1. Advanced by gold
Executive Summary

2. Contents
Gold’s impact 03
Preserving wealth 04
Rising aspirations 10
Scientific breakthroughs 17
Putting gold to work 20
Boosting growth 24
Partnership 29
Scan with your mobile device to access
the application for the full report.
2

3. Gold is not a new story. It is, however an evolving one. Today
gold’s uniquely versatile qualities are seen in a range of
applications, making it part of the fabric of our society. Jewellery
accounts for half of global demand. As a financial instrument,
enabling medical breakthroughs, supporting community
development, contributing to national and global economic wealth,
gold is being put to use in more ways than ever before.
Gold – making a real
impact in the world
In the growing markets of China and
India, gold – long embedded financially
and culturally – has both prominence and
prestige. Consumers are enjoying new
found wealth, and this can be seen in an
increased appetite for gold.
Organisations and designers are
developing innovative financial products
and high-end jewellery for ever more
aspirational customers.
As the economic recovery in developed
markets gathers pace, the role of gold
has evolved in turn. Consumer demand
for gold jewellery, bars and coins has
reached pre-2008 levels, and this is a
global phenomenon. For investors
intensifying their search for yield, an
allocation of gold can protect against the
risky assets in their portfolio.
Gold brings confidence to global
financial markets. It has been trusted
when currency has not. As the world
moves towards a multi-currency reserve
system, many believe that the renminbi
will play a part as an alternative reserve
to the euro and the dollar. During this
transition, gold is likely to have a
significant role to play.
‘Today gold continues to have
relevance as a foundation asset to help
manage risk and preserve wealth.‘
Gold drives economic development and
in 2012 contributed US$210 billion to the
economies of the largest gold-producing
and consuming countries. In the same
year, the gold mines in the world’s top 15
producing countries generated an
estimated US$78.4 billion of output for
their national economies. Gold mining
can be a significant source of wealth
creation in developing countries. For
example, in 2012, gold made up 36% of
all Tanzanian exports and 26% of those
from Ghana and Papua New Guinea.
Gold’s impact
3

4. The world is “volatile,
uncertain, complex and
ambiguous” - VUCA.
Investment decisions are
difficult. Growth is elusive, and
security is hard to find, too.
Gold is unique. Over the long
term, it preserves wealth, and
adds to it. As an asset it is
supported by growing global
demand. As a commodity it is
both needed and trusted by a
growing cohort of industries
and investors. Gold is always
in demand somewhere, either
as something exquisite to be
aspired to, or as an
investment. Whatever changes
we see in global stock markets,
currencies or government
credit ratings, gold remains
solid over the long term.
Seeking solutions and stability in
an uncertain world
Preserving wealth
Gold is adaptable: that is why it
continues to be such an important
material today. Gold’s properties make it
an essential component in emerging
technologies, such as medical
diagnostics and nanotechnology. Patent
applications for gold nanotech
applications are soaring. Gold is
resistant to bacteria, making it useful, for
example, in inner ear implants. Gold
nanoparticles can help identify and
manage HIV/AIDS and malaria, enabling
doctors in both the developed and the
developing world to identify and fight
disease earlier and more effectively than
ever before.
Throughout history, the gold market has
demonstrated its unique ability to self-
balance. In the same way that gold, once
mined, can take on many shapes and
uses, demand ebbs and flows
geographically and sectorally but as a
whole, remains strong.
Gold’s versatility and scarcity combine
to make it a unique substance; it is the
ultimate store of wealth in a world
advanced by gold.
“We are witnessing a global economic
rebalancing, with shift of resources and
power from West to East.”
Aram Shishmanian
Chief Executive Office
4

5. Solidity in a
complicated world
The world spins on its axis, as every schoolchild knows.
But today many of the other certainties we grew up with
have been overthrown. Complexity rules. Although
showing signs of improvement, the effect of the financial
crisis of 2008 is yet to be fully resolved. Meanwhile, a
global rebalancing is taking place.
The resurgence of Asia, in particular China and India,
will see higher growth rates than in the West, with a
billion new urban consumers by 2020. Patterns of
consumption are shifting. Savings rise in the East while
debt remains stubbornly high in the West. However,
despite lower projected growth rates in the mature
markets of the West, they still remain significant. Indeed,
on a per capita measure, developed countries are forecast
to remain significantly wealthier.
Powerful sources of demand
China and India alone already account for more than half
of total global demand for gold. Jewellery – which makes
up half the global gold market – is valued there not only
in its own right as a symbol of timeless relationships, but
also as a store of value and an investment. Younger
consumers are entering the market too, with new desires
and expectations. The growing appetite for gold is part of
a bigger trend seen in many fast developing countries,
where consumer demand for gold has made up over 50%
of the global total since 2000.
By 2020, India will add 75 million households with middle
class and above earning power; China will add 170
million. For consumers and savers, gold fits the bill,
providing protection for wealth as well as being a means
to social and financial inclusion. At 1,066 tonnes,
Chinese gold purchases in 2013 were remarkable, the
highest recorded.
Gold demand across sectors:
2013
Jewellery
Technology
Investment
Central bank net purchases
Preserving wealth
2009 – 2013
(5 year average)
Source: Thomson Reuters GFMS, World Gold Council
Totals may not sum to 100% due to rounding
5

6. Preserving wealth
A solid investment
Although the gold price fell in 2013, this changing global
context, underpinned by new and resilient sources of
demand, should provide some reassurance to private
investors wondering about gold as an asset class.
What are private investors looking for? A reasonable
degree of certainty. Gold can offer this as a modest part of
any balanced investment portfolio, in terms both of
wealth creation and preservation. As a tangible, real
asset, gold is more easily understood and trusted than
more complex, esoteric financial instruments. Perhaps
this is why, as market confidence rises in the US,
consumer demand for gold rose 21% in the first quarter of
2013 compared to early 2012.
In Japan, as Abenomics was implemented throughout
2013, pension funds increasingly turned to gold, a trend
that looks likely to continue.
In a world of complicated and unpredictable change,
pensions and savings need to build on assets that reduce
risk and stabilise returns. Gold can help deliver this
valuable protection over the long term.
Geographical distribution of
gold demand 2013*
of global gold demand
is from China and India53%
Source: Thomson Reuters GFMS
*% of consumer demand (jewellery plus total bar and coin demand)
5%
US
10%
Europe &
Russia
11%
Middle East
& Turkey
20%
Others
29%
Greater
China
25%
India
physical gold demand coming
from developing countries*.71% * Developing countries include (based on classification from IMF): India, China,
Indonesia, Thailand, Vietnam, Saudi Arabia, Egypt, UAE, Other Gulf and Turkey.
6

7. Preserving wealth
Specialised training for the experts
University of California, Berkeley at dusk
The World Gold Council has partnered with the University of California,
Berkeley to create the first ‘Executive Programme in Gold Reserves Management’, designed
to help central banks manage their investment in gold.
Since the financial crisis, central banks
have continued to diversify away from
the US dollar, becoming committed
purchasers of gold. Collectively, these
organisations now own one-fifth of the
world’s discovered store of the precious
metal.
But how do central banks ensure that
they have the skills and knowledge
necessary for the fundamental analysis
of gold? 2013 saw the creation of the
inaugural ‘Executive Programme in Gold
Reserves Management’, designed to help
central banks manage their investment
in gold and understand the market
signals from its movements. Developed
as a joint initiative between the World
Gold Council and the University of
California, Berkeley, this three-day
programme brought together 27 senior
central bankers representing 18
countries, $5 trillion assets and 8,700
tonnes of gold, under the instruction of
academic and professional experts.
Former head of the World Bank and
keynote speaker at the 2013 programme,
Robert Zoellick, commented, “I think it is
important for monetary authorities, as
well as investors, to better understand
the roles of gold and how they might
evolve. I see that the agenda for
Berkeley's Executive Programme in Gold
Reserves Management offers an
excellent combination of history,
fundamentals, mechanics, and portfolio
considerations.”
7

8. Central bank governors, a serious bunch
by and large, are only human. They seek
security. Gold can fulfil a monetary
function and acts as a protector of the
value of reserve assets as a whole.
Central banks are increasing their
holdings of gold as a percentage of
reserve assets. As a new financial
architecture emerges in the post-crisis
world, it is clear gold has acquired a new
relevance.
Since 2009, when they first became net
purchasers of gold, central banks have
bought heavily. 2012 saw levels of
buying not seen for five decades. Indeed,
by the end of 2013 central banks had
been net purchasers of gold for 11
consecutive quarters. Central banks,
uncertain about quantitative easing
tapering and concerns around the US
debt ceiling, continue to diversify away
from the US dollar and sovereign debt
and recognise gold’s qualities as a
reserve asset.
Uncertainties are ever present for central
bankers. In emerging markets for
example, gold will continue to be a key
tool to manage risk. Last year alone,
central banks purchased 369 tonnes of
gold, illustrating the importance reserve
managers place on gold.
Ever-present risk
Although some of the more extreme
aspects of the financial crisis may have
passed, many states remain deeply
indebted, as do many of their citizens.
The great experiment of quantitative
easing and expansionary monetary
policies is nearing its end and with it
brings new concerns for households and
governments. In this context asset
allocation has to be robust. As guardians
of collective wealth, central banks have
to ensure that risk is hedged with a
diverse portfolio of assets.
Uncertainties abound. Higher interest
rates may force home repossessions and
business failures, the end of quantitative
easing may reverse emerging market
growth and some fear the inflation genie
has escaped captivity again and will
soon unleash harm on the value of
currencies and cash deposits.
Banking on gold – new trends in
reserve asset management
Preserving wealth
China: Projected central bank gold holdings
Source: Oxford Economics
1,054
tonnes
2012 gold share in
reserves (1.7%)
1,58
9
tonnes
2022 projected gold
reserves if ratio remains
constant at 1.7%
2,524
tonnes
2022 projected gold reserves
if ratio increases by 1% to
2.7%
Central bank contributions to demand in tonnes
Source: Thomson Reuters GFMS, World Gold CouncilNet purchasesNet sales
8

9. When times are uncertain gold’s capital
preservation qualities stand out. Gold’s
low correlation to developed-market
movements and risky assets make it a
“foundation asset”, regardless of
prevailing cycles.
It is proven to reduce portfolio risk in a
wide range of markets and conditions.
Measured over the five years of the
recent financial crisis, a study of
financial returns during stress periods,
including the Lehman Brothers’ collapse,
European debt crisis and Greek bailout,
shows gold to be the best performing
asset against a basket of other high
quality liquid assets such as government
bonds and cash.
Raising allocations to gold in the light of
uncertain prospects for currencies is a
strategically sound option. As central
banks and sophisticated investors seek
optimal diversification of their portfolios,
gold’s ability to protect and enhance
wealth will ensure it remains an
enduring part of their investment
strategies.
Outperforming asset “As China weighs up its options for joining in the
reserve asset game, gold – the official asset that
plays no formal part in the monetary system, yet
has never really gone away – is poised, yet again,
to play a pivotal role.
…no other reserve asset seems safe from impact
of the change in the dollar's value."
Professor Lord (Meghnad) Desai,
Chairman of the OMFIF Advisory Board
Preserving wealth
China is the only one of the world’s six
largest economies that does not have
reserve currency status. Yet the country
has the second largest economy in the
world, and its share of world trade has
increased threefold in the past decade. In
the coming years, China plans to
internationalise its currency, the
renminbi.
The renminbi is thus a candidate to play
a greater role as an alternative reserve
asset. Uncertainties around the renminbi
relate to China’s exchange rate policy
(gradually more flexible since 2005, but
still tightly controlled) and accessibility.
In a study conducted for the World Gold
Council, international finance think-tank
OMFIF argues that the renminbi is likely
to emerge gradually as a genuine
international currency as Beijing eases
restrictions on its use in transactions
and investments abroad.
The renminbi – gold's pivotal role
This, the body argues, will enhance the
role of gold in the international monetary
system in the coming 10 years of
rebalancing. Any setbacks to the
renminbi’s rise as a reserve currency will
benefit gold as a result of doubts about
the overall strength of world monetary
arrangements. China’s aspiration to take
a more assertive role in world politics
and economics will encourage Beijing to
lead the way in storing its wealth in
assets that are not simply the liabilities
of other countries.

10. Rising aspirations
Luxury is being restyled. Demand is on the up. Following years of
decline, 2013 was the first year that jewellery demand in the US
rose - on an annual basis - since 2001. New consumers in Asia
are inspiring new designs and innovations in jewellery buoyed by
the shift in global economic power toward the East. For this
market, the only way is up – to the high end – where beautiful
craftsmanship and value justify status purchases.
Asia’s millennial
generation –
the new
consumer power
The bottom line is this: a new force in
gold is growing in the East and has
already eclipsed the West. This is the
new world. If you want to understand
how it is changing, both socially and
economically, then the rising interest
in gold in the world’s fastest growing
economies is a good place to look.
In these countries, a firmly rooted
cultural affinity for gold is being
reshaped and reinvented by affluence
and the social power of the millennial
consumer (aged 16-31). Connected by
social media, and enjoying new spending
power their parents never had, this
increasingly influential generation is
building on a rich heritage to shape
events in their personal image. Research
commissioned by the World Gold
Council into consumer attitudes in the
US, China and India reveals a cultural
shift is taking place. Across the luxury
goods market, the ‘millennials’ are
driving a re-interpretation of luxury in
keeping with their distinctly national
visions of modernity.
New affluence driving growth
10

11. Rising aspirations
Annual jewellery demand in India and China vs US and Europe*
*Europe comprises four major markets: Italy, UK, France and Germany.
Source: Thomson Reuters GFMS, World Gold Council
The two biggest markets for gold
jewellery, India and China, together
generated 58% of total annual (jewellery)
demand in 2013.
In China, over the last five years
jewellery represented an average 68% of
gold demand. As well as being seen as a
sign of prosperity, beauty, a currency
and an integral part of Chinese religion,
gold jewellery has always been seen as
an investment.
Demand for gold jewellery in India
accounted for 28% of the global market
in 2013. In India, as in China, demand
for jewellery is tied to the investment
qualities of gold. The motivation behind
a jewellery purchase is linked as much to
its value and role in wealth preservation
as it is to its pure aesthetic beauty.
A cultural shift is taking place that offers
new growth opportunities. The 2012
World Gold Council consumer attitudes
study confirmed that women aged 20-30
have the greatest influence on this gold
jewellery market.
They have moved from buying or
receiving jewellery only on special
occasions such as weddings or Diwali, to
“self-gifting” to create a look, especially
in non-traditional dress. Beautiful,
modern designs allow younger women to
stand out as individuals, and express
their own identity.
China has seen the emergence of a more
confident cohort of 20-30 year olds who
increasingly want jewellery that is home-
grown in terms of design, produced by
upcoming Chinese designers. In India,
75% of women say they are constantly
searching for new designs. This extends
to the bridal category, which accounts for
over 50% of gold jewellery sales;
consumers are looking for gold jewellery
that they will want to wear beyond the
wedding day. Wedding necklaces that
use modern designs and can be detached
to create smaller jewellery pieces
respond to the need for more playful,
flexible designs.
Asian women create a new market
of annual gold
jewellery demand
comes from India
and China
71%
of women in India
say they are
searching for
new designs
75%
11

12. Rising aspirations
Generation trend: Percentage of women who bought or received
gold – stays the same as currently:
Source: World Gold Council, Gold Jewellery,
Usage and Attitudes Survey, June 2012
The “millennials” are ready to adapt and build on
tradition. In so doing, they are opening a new market.
And crucially, they are sharing their thoughts and
experiences online. There is a digital revolution in gold,
too, in which bloggers and other social media users
spread the news about new designers and pieces they
discover. They – as much as conventional editors or
advertisers – are shaping opinion and influencing trends.
“If I no longer have my luxury
items, I’d be like any other person
on the street – so ordinary people
wouldn’t take a second glance at
me.”
By 2020, there could be around 1 billion new urban
middle class consumers who think – and shop – like the
university student in Shenyang quoted above. This is a
colossal opportunity. The challenge for the jewellery and
luxury goods industry is to engage in these new digital
conversations, and design and market the high-end
products that a billion eager new customers will be
aspiring to.
12

13. Actress Esha Gupta wears Azva
The Azva collection, launched by the World Gold Council in 2012, combines tradition and
modernity to re-imagine gold wedding jewellery. Inspired by the Saat Pheras (or Seven
Vows) of Indian weddings, it has been brought to market by top Indian designers and
retailers
Nothing could be more traditional than an
Indian wedding, surely? The coming
together of two families, the joyous
feasting, the crowds, the ceremony, the
celebration.
And yet here, too, the modern face of gold
and the changing expectations of young,
affluent Indian consumers make their
presence felt. Azva is a bridal jewellery
collection that reconsiders gold jewellery
for India’s young generation of brides
seeking to suit their personal style
beyond the big day. Azva is a collection
of jewellery designed for life not for the
locker.
Today, brides and grooms are making the
wedding day more personal, and even
more fun. With this increased creativity
and freedom there is an increased
demand for a wider range of jewellery
designs. The World Gold Council
introduced Azva in 2012, in part as a
response to the continuing cultural shifts
being seen in the country.
Azva jewellery designs are inspired by
the Saat Pheras or “Seven Vows” of the
Indian wedding and encourage the couple
to make their own vows. Derived from the
Sanskrit word ashva, and brought to
market by India’s most respected
designers, ‘Azva’ is rooted in Indian
culture, and at the same time distinctly
modern. This combination of heritage
and modernity is clearly making an
impression. Since its launch, Azva has
gone from having a presence with top
retailers in four cities to over forty across
India.
Azva – reinterpreting tradition
“Redefined through the years, there is nothing that
adds royalty, glamour and fire to a design like
gold. Its magic lies in lending timelessness to
design that can never go out of style.”
Tarun Tahiliani,
leading bridal couturier in India.
Rising aspirations
13

14. The past ten years have seen a
consolidation in demand for gold in
western developed economies at the
top end of the luxury market. A 2012
study by the World Gold Council
into global consumer attitudes
revealed a shift in the market
segmentation among consumers of
gold in western developed
economies.
In response to this, the World Gold
Council created LoveGold, designed
to inspire and seek out the world's
most beautiful gold jewellery, the
designers creating it and the people
wearing it. LoveGold.com and its
social media platforms bring you
captivating stories, exclusive
features, unusual and unexpected
jewellery pieces.
Status and aspiration
Rising aspirations
Among high net value individuals,
from the exclusive boutiques of New
York and Los Angeles, to the refined
shopping arcades of London, Paris
and Milan, gold is about status. The
price of gold can be a further
justification for purchasing it
because it is more clearly defined as
an aspirational product with implied
accessibility only to the most
successful. But even among those
who are not the highest earners
there is a desire to buy fewer but
better pieces, to avoid
compromising quality at all costs.
Gold’s timeless appeal plays into
this, if you are buying something for
ever then you should buy the best.
While gold wedding rings remain an
ever-present phenomenon in the
West and leverage this timeless
value, gold jewellery to be worn on
other occasions is proving
increasingly popular. The higher
concentration of gold in luxury
products has been accompanied by
a new wave of creativity in the
design of gold jewellery. This has
broadened the range and potential of
jewellery items.
Celebrating gold’s most captivating pieces
The World Gold Council created LoveGold, designed to inspire and seek out the world’s
most beautiful gold jewellery, the designers creating it and the people wearing it.
14

15. Rising aspirations
Gold’s timeless red carpet glamour
Angelina Jolie shines in bezel set yellow gold 42 carat diamond earrings by
Robert Procop at the Academy Awards.
A lifetime's relationship with gold
“Gold does not decay, and is purified
when exposed to fire. Endowed with all
these special characteristics, it is the
natural symbol of beauty and power.”
Elena Votsi
Gold is not confined to a single event. Today’s twenty-
something consumers are exhibiting a new fascination
with gold jewellery, and an appetite to rediscover gold as
a gift item across a lifetime of memorable events. Again,
this doesn’t just happen on your wedding day. Gold
jewellery is often given to mark other milestones in a
couple’s life together.
Gold is an aspirational product with deep cultural
heritage. Yet it offers the creative flexibility to express a
lifetime of important moments, both formal and informal.
The relentless rise of luxury branded gold design, and the
work of emerging creative talents, who are finding new
meaning for it, will be features of the future growth of this
global industry.
15

16. Rising aspirations
The rise in gold’s popularity in Asian markets, and the
boost for designers that comes with it, may have a knock-
on effect further afield. Designers in the West will have to
rise to the challenge being set in the East.
Investing in top designer talent
If London, New York, Paris and Milan are
to remain focal points of the global multi-
billion dollar fashion and design
industries, they will have to embrace this
renewed and fast-developing market for
gold.
In the precious metals design industry,
even design professionals with proven
success in luxury goods markets face a
financing challenge to break into the top
of the market in precious metals. To
create beautiful products, gifted
craftsmen must first obtain high value
raw materials to craft an offering to
display. Only those with serious financial
backing can break through.
The World Gold Council is supporting
the most talented and skilled craftsmen
with loans of gold. Given the metal to
work with, these designers are
reinventing gold jewellery for generations
to come. Designers such as Tarun
Tahiliani, Pamela Love, and Shaun Leane
are putting gold at the cutting edge on the
fashion and design catwalks.
As consumers aspire to the best quality,
fostering and investing in the talent to
satisfy that need is essential to the
creation of a thriving industry for the
decades ahead.
Supporting today's talent
As consumers aspire to the best quality, fostering and investing in the talent to satisfy
that need is essential to the creation of thriving industry for the decades ahead. The
World Gold Council supports designers such as Tarun Tahiliani and Pamela Love with
loans of gold.
"Redefined through the years, there is
nothing that adds royalty, glamour and
fire to a design like gold. Its magic lies in
lending timelessness to design that can
never go out of style."
Tarun Tahiliani,
Designer
16

17. At the nanoscale, gold displays unique properties which scientists
around the world are still unraveling. While the bulk metal is one of
the most stable and durable substances known to man,
nanoparticles of gold can act as a catalyst making chemical
reactions work hundreds of times faster. Gold is also at the heart of
diagnostic kits for diseases such as malaria and HIV/AIDS, and its
biocompatibility makes it ideal for delivering drugs inside the human
body. Little wonder that patents for nanotechnology research using
gold continue to soar.
Scientific breakthroughs
Gold, desired for its beauty since ancient
times, is now helping shape the future of
technology. At the ‘nano-scale’, gold has
newly discovered properties and is one
of the most promising nano-materials. Of
the approximately 81,000 research
papers on ‘nanoparticles’ listed in
PubMed since 1978, more than 16%
relate to gold. The majority were written
within the last five years.
Gold nanoparticles are less than 1
billionth of a metre in diameter. At this
size the metal takes on a completely
different set of properties. It can help
accelerate chemical processes through
catalysis, and may help fight deadly
diseases such as cancer, HIV/AIDS and
malaria.
A catalyst for improved health
and environment
17

18. Scientific breakthroughs
Targeted drug delivery minimises side effects
Because gold nanoparticles demonstrate
excellent “biocompatibility”, there are
even greater opportunities for the metal
in improving human health. These
particles are showing great promise as
vehicles for drug delivery, with a number
of companies actively pursuing new
therapies enabled by gold.
One example of this work is
AstraZeneca’s collaboration with biotech
company CytImmune to develop a
potentially game-changing approach to
treating cancerous tumours. Gold
particles coated in cancer-fighting drugs
accumulate naturally in the unusually
porous blood vessels that feed tumours.
Cancer drugs delivered accurately in this
way generate far fewer side effects in
surrounding healthy tissues. Other drug
companies are researching similar
targeted drug delivery methods for other
difficult to treat diseases.
Capturing the power of light
Potential applications for gold
nanoparticles extend beyond just
healthcare into environmentally friendly
energy solutions. For example, studies
have shown that the efficiency of
photovoltaic solar cells can be improved
by adding a nano-layer of gold. Materials
physicists at the University of California,
Los Angeles have developed a novel
solar cell technology in which
nanoparticles are added to a thin film of
polymer that could be coated onto
windows to generate electricity, without
the need for rooftop installations.
Working with gold in this way promises
future solutions to billion dollar health
and energy problems. Little wonder
applications for patents involving gold
continue to soar.
Faster diagnosis saves lives
Gold is at the heart of hundreds of
millions of Rapid Diagnostic Tests
(RDTs), as described on the World Gold
Council’s video ‘Gold for Health’.
Caroline Asiimwe works for the
Foundation for Innovative New
Diagnostics (FIND) in Uganda, where
malaria is one of the Ministry of Health’s
biggest priorities. For her, the
importance of diagnostics is clear: "In a
remote place, where a child is exposed to
malaria or pneumonia … having a test
(that gives a result immediately) will
save a life that would have died by
morning."
However, the next generation of
diagnostic technologies is gradually
coming online. A good example of this is
the FDA-approved Verigene detector,
manufactured by Nanosphere. It uses
specially treated gold nanoparticles to
detect a dozen dangerous bacteria within
2-3 hours. This means tests can be
performed on the spot, negating the need
to transport potentially infectious
samples to distant laboratories.
In 2013 researchers at Imperial College,
London continued developing an ultra-
sensitive test designed to detect a range
of viruses and cancers. These kits also
rely on gold, with the colour change on
the test driven by the presence or
absence of specific chemicals in the
samples.
Number of published patents including the words
'gold' and 'nanoparticles’
Source: Johnson Matthey, World Gold Council
18

19. Scientific breakthroughs
Air and water purified by gold
Until relatively recently, the
technological potential of gold was being
exploited only by the electronics and
dental industries. But nanotechnology
has changed all that.
The discovery, in the mid-1980s, that tiny
particles of gold can speed up chemical
reactions was startling for scientists.
Gold is used to make jewellery precisely
because it is inert and will not tarnish, as
it does not react with water or oxygen.
Initially, simple systems were
investigated (such as the efficient
removal of the poisonous gas carbon
monoxide), but now more complex
issues, such as water purification, are
being tackled.
A multi-disciplinary team of researchers
from Rice University, DuPont and
Stanford University are developing
‘PGClear’ – a system based on gold
nanoparticles coated with palladium - to
clean a range of chlorinated compounds
out of groundwater, including
trichloroethene (TCE), a suspected
carcinogen. TCE is present in 60% of the
US Environmental Protection Agency’s
priority Superfund clean-up sites, and is
one of the most widely-found pollutants
associated with industrial activity.
Chlorinated compounds, once widely-
used as solvents, contaminate water the
world over. Both are extremely expensive
to treat with conventional technology.
"We didn't believe it at first, because the
gold-palladium nanoparticles were just
so much more efficient — a hundred
times more efficient," Professor Wong,
the lead researcher from Rice University,
said about the efficiencies observed
when compared to the conventional
technology. This promising solution is
now being piloted to treat chloroform at a
site in the US state of Kentucky. The first
large-scale PGClear unit, designed to
treat groundwater contaminated with
chloroform, has been installed and is due
to go into service in 20144.
Years in the planning and supported by
the World Gold Council, the team
pioneering this approach looks forward
to a successful trial. Operating at full-
scale, this technology could rid the world
of some of its most persistent and
problematic pollutants.
Technology revolution
Until recently, the technological potential of gold was being exploited by the electronics
industry and dentists. Nanotechnology has changed that. New applications include solar
power generation, air purification and groundwater clean-up.

20. Investing in gold has become a possibility for many more people in
the last decade. Formerly restricted gold markets have been
liberalised. Affordable investment products have emerged for lower
to middle income families. This trend provides new business
opportunities for go-ahead organisations. They can tap into latent
demand for reliable savings vehicles across the developed West and
the powerhouse economies of the East, by developing new channels
and products to bring gold to investors and consumers across the
world.
Putting gold to work
The gold market has opened up
dramatically to investors in recent years,
thanks to liberalisation in countries
where gold sales were once restricted,
and the emergence of a growing range of
investment products affordable to lower
and middle income families. This
provides new opportunities for financial
institutions and partners to work with
the World Gold Council on developing
new channels and products to bring gold
to consumers. Today, any investor can
buy gold. As well as gold coins and bars,
physical gold exchange-traded funds
(ETFs), internet gold investment
channels, retail gold investment options
in Asia are innovations that have
responded to growing demand in the
market over the last decade.
Democratising' gold investment
products
20

21. Putting gold to work
Creating business opportunities
The opportunities for investors have
continued to grow. Working with the
World Gold Council, a number of
countries have developed gold products
and savings plans to make gold more
widely accessible.
The result? ICBC Gold Accumulation
Plans (GAPs) now give Chinese
investors a monthly savings plan,
regularly purchasing small amounts of
gold over an extended period. There are
currently over 9 million accounts in
China and Taiwan, giving people more
ways to own gold.
In Europe, high storage and handling
costs have made gold products
uneconomic for many banks in spite of
customer interest. In response, Munich-
based precious metals dealer pro aurum
and the World Gold Council have
partnered to establish a new online
platform enabling banks to offer gold
investment and savings products.
German banks can now easily offer their
customers securely vaulted gold bars
and coins without the banks’ requiring
any existing gold dealing capabilities.
The rapid uptake of these gold
investment products is a sign of the
opportunities that exist: to tap into
demand for gold products among
consumers of diverse nationalities and
income levels. The opportunities globally
are significant. Gold investment today
across institutions and the privately
wealthy remains at about 1% of assets
under management.
In addition, US and Japanese
institutions, primarily pension fund
providers, are a hugely valuable market
that to date remains largely under-
invested in gold.
Financiers and others looking for new
business opportunities should take note.
Broadening gold's accessibility
The World Gold Council has worked
with financial groups across the US,
Europe, India and China to reach a
widening consumer base hungry for
gold-backed investments, all part of the
‘democratisation’ of gold as an
investment.
SPDR® Gold Shares (GLD) was listed on
the New York Stock Exchange in
November 2004 and became the first
physically-backed gold exchange-traded
fund (ETF) to trade on a regulated
exchange in the US. GLD offers investors
a cost-efficient and secure way to access
the gold market. In just over eight years,
GLD has become the largest physically -
backed gold ETF in the world. SPDR®
Gold Shares also trade in Singapore as
well as Tokyo and Hong Kong.
Global gold allocation
Debt & money market
Equities
Alternative investments
Gold
Source: BIS, Thomson Reuters GFMS, Hedge Fund Research,
J.P. Morgan, Prequin, World Federation of
Exchanges, World Gold Council
Total bar and coin demand in tonnes
2012
2013
Source: Thomson Reuters GFMS,
World Gold Council
21

22. You cannot buck the market, and in the East the market is
growing fast. Demand does not stem from any sense of
nostalgia. New consumers in both India and China are
exploring the potential for gold in a contemporary setting.
This is all part of a familiar global trend, of course. The
growing powerhouses of China and India are driving
demand for many different goods and services. Gold is no
exception.
To understand the two largest markets for gold in the
world, you have to bear in mind their particular
investment cultures and the impact of liberalisation and
modernisation.
Asia rising: gold in India and China
Putting gold to work
Middle class population growth*
Source: McKinsey Global Institue
* China: disposable household income greater than 79k RMB,2005 prices
India: household income greater than 200k INR, 2000 prices
Chinese preserving new wealth
Up until 2002, the market in China was
tightly regulated, from production
through to retail distribution. Now the
market is more open. Many consumers
are better off, and higher savings rates
amongst private individuals are
generating strong demand.
Chinese consumers are looking to gold
to protect new wealth in a world of
fluctuating and uncertain currency
movements. China is now the largest
consumer of gold in the world,
demanding over 1000 tonnes in 2013.
Demand for gold has risen at an average
rate of 22% for the last 5 years.
Gold in the new financial architecture
The financial crisis triggered by Lehman
Brothers’ collapse in 2008 not only
shocked the markets but left
governments and regulators with some
of their most difficult challenges for a
century. Beyond calming the markets,
top of their list was how to prevent a
crisis of this scale ever happening again.
Regulators from the G20 countries acted
quickly. They required financial
institutions to “de-risk” their activities,
making them trade in open and
transparent marketplaces via central
counterparty clearing houses (CCPs) so
any significant risks could be seen and
controlled. But this alone wasn’t enough.
For banks one of the biggest concerns is
liquidity: the lack of it triggered the
market collapse in 2008 so regulators
want to see that a financial institution
even though trading in a monitored
marketplace has plenty of high quality
liquid collateral that can be quickly
deployed in times of stress.
The nature of gold lends itself well to
this task, and it is being increasingly
used as a source of high quality liquid
collateral. Its lack of credit risk and
countercyclical characteristics make it
ideal for this purpose. Recently the
European Parliament voted unanimously
to accept gold as collateral and other
supranational regulators like the
International Organisation of Securities
Commissions (IOSCO) have
recommended using gold as collateral for
certain trading activities.
“One of the reasons we particularly like gold is
because it’s countercyclical: typically in times of
stress gold is in high demand… regulators want
central counterparties to hold collateral which is
easily liquidated and will hold its value”.
Paul Swann,
President and Managing Director, ICE Clear Europe
22

23. Putting gold to work
Financing requirements*
Source: Bloomberg, World Gold Council, Europe Economics
* Two year financing requirements are full year 2013-2014
23

24. According to a recent report by PwC commissioned by the World
Gold Council, gold contributed an estimated US$210 billion to the
economies of the largest gold-producing and consuming countries
in 2012. Of that total, large-scale commercial gold mining added
an estimated US$78.4 billion, and nearly 530,000 direct jobs.
Large-scale mines are significant contributors to economic and
social development, providing national infrastructure, healthcare
and business opportunities that can have a highly positive impact
on communities. The gold mining industry is working with
governments to ensure that the benefits of natural resources
deliver for generations to come.
Boosting growth
There is a continued appetite for gold.
This gold should be responsibly
produced, to meet high environmental,
health and safety standards and not fuel
unlawful armed conflict. At the same
time, investors and consumers of gold
are increasingly recognising that
responsible gold mining can be a major
driver of social and economic
development.
Responsible mining delivers for
developing countries
24

25. Understanding the economic impact
created by responsible gold mining is
important to support equitable returns
across stakeholders. In an industry first,
World Gold Council Members have
worked together to combine their data
and provide a comprehensive, country-
by-country study of where money is
spent to support responsible gold mining
and how much of that expenditure is
incurred in the country of operation.
The study found that more than
US$55bn was paid out by responsible
gold miners in 2012. From that spend,
US$35.2bn went to suppliers and
US$8.3bn (15%) on wages. An additional
US$8.4bn (15%) was paid in taxes and
royalties and US$3.4bn in payments to
providers of capital (including dividends
and interest).
More than 80% of that total spend
(US$44.6bn) was incurred in the country
of operation.
Gold mining companies are increasingly
looking to source from national suppliers
and help build up local supply chains. A
study of four major gold mines in Peru
showed that the four largest gold mining
companies purchase 90% of the goods
and services they need from Peruvian-
based companies. Non-mining districts
had on average 17% more poverty and
12% more extreme poverty compared
with gold mining districts.
Boosting growth
Supporting national wealth creation
According to the World Bank’s Oil, Gas
and Mining Unit, mining can help
provide social services to remote
communities, improving access to
healthcare and basic utilities. Gold mines
are frequently operating in remote
locations, so mining companies often
invest in transport and power
infrastructure which benefits the
surrounding region and local economy.
Companies may also invest in
partnerships with regional and national
governments, non-governmental
organisations and aid bodies to support
local economic development. In Peru, for
example, Yanacocha works with the
Clinton Foundation, International
Finance Corporation and USAID to
support training for more than 200 local
businesses so that they can compete for
larger contracts.
Healthcare is a priority for mining
companies, too. In addition to HIV/AIDS
and malaria, remote and impoverished
communities can also suffer from
diseases that have been all but
eradicated in the developed world, such
as rickets. Mining company support for
healthcare initiatives for workers and
their families is a key aspect of
developing sustainable local gold mining
and is beneficial for both the gold mine
and the community.
Laying foundations that will last
25

26. Securing a broader, stable and growing
economy is a shared goal. The gold
mining industry, governments,
international organisations and local
communities all have important roles to
play in contributing to sustained
development.
Gold mining companies directly and
indirectly improve conditions for
communities during the lifetime of a gold
mine. But what happens when the life of
a mine comes to an end? Will the
benefits endure? Are local communities
and national governments prepared for
life after a mine? To ask this another
way, how can we all help create the next
San Francisco, where the legacy of the
gold mines creates a vibrant and
sustainable community, long after the
mining itself has ceased.
Boosting growth
Ensuring a legacy
Gold map: Unmined gold
Source: www.goldfacts.org, US Geological Survey
* United States Geological Survey data shows significant
untapped potential in developing economies of the global South.
Gross National Income per person*
$35,000 +
$10,000 – $35,000
$2,500 – $10,000
$500 – $2,500
26

27. Gold is the ultimate recyclable material
and it has a totally distinct supply-chain.
To explain more about gold’s journey
and the impact it can have, we have
developed a responsible gold sourcing
tool which explains the economic
contribution made across the supply
chain.
Regrettably, some of gold’s
characteristics, including its intrinsic
value and portability, have made it a
potential source of finance for illegal
armed groups involved in civil wars and
insurgencies. Whilst the proportion of
newly-mined gold tainted by such
conflict is very low, it is important that
responsible actors take steps to exclude
gold misused in this way from entering
their supply chains.
At every stage in the journey from mine,
through refineries, banks, investors and
consumers, buying with confidence in
the provenance of gold is important. The
Conflict-Free Gold Standard provides a
common approach through which gold
mining companies can confirm their gold
has been extracted in a way that does not
cause, support or benefit unlawful armed
conflict, or contribute to human rights
abuses or breaches of international
humanitarian law.
Work on the Conflict-Free Gold Standard
began in 2010, and was designed to
‘operationalise’ the OECD Guidance on
Responsible Sourcing of Minerals for
gold miners.
Setting the standard:
conflict-free gold
Boosting growth
Conflict-Free Gold Standard
The World Gold Council started work on the Conflict-Free Gold Standard in 2010. Whilst
the proportion of newly-mined gold tainted by conflict is low, it is important
that responsible actors take steps to exclude gold misused in this way from entering supply
chains.
The Standard helps gold miners to:
• Assess whether they are operating in
a ‘conflict-affected or high risk’ area
• Ensure that they have the right
corporate processes in place to be
able to mine responsibly and that
they have sufficient controls to
prevent the misuse of gold
• Conduct due diligence in their
purchase of gold from external
sources
• Provide a statement of conformity to
the next party in the chain of custody
• Publically disclose conformance with
the Standard, which needs to be
externally assured
The Standard is designed to codify
responsible mining in conflict-affected
areas. If companies can demonstrate that
they are operating responsibly, their
activity should be encouraged so that the
broader social and economic
developmental benefits associated
27

28. We know that gold is valuable. But how much added
value does it offer to the rest of the global economy? To
find out, the World Gold Council commissioned PwC to
measure the value that gold adds directly to the
economies of the largest gold producing and consuming
countries. Together, these nations account for three-
quarters of global gold production and around four-fifths
of gold demand.
US$210 billion gross value added
Boosting growth
PwC estimates that gold’s overall global
economic contribution is worth over
US$210 billion in 2012 – equivalent to
the (2011) GDP of Pakistan, and
substantially bigger than the economies
of Peru, Kuwait, Hungary, Vietnam and
New Zealand.
In the same year, the investment
purchases of small bars and coins
generated an estimated US$38 billion,
and gold jewellery fabrication and
consumption another estimated US$70
billion across the top 13 gold consuming
countries. Approximately US$4 billion
more was generated by technology
applications for gold.
Gold mining also leads to jobs, foreign
direct investment and foreign exchange –
in 2012 it accounted for 36% of all
Tanzanian merchandise exports and 26%
of exports from Papua New Guinea.
Jobs in the gold mining sector have a
significant multiplier effect. In South
Africa, for example, 138,000 people are
directly employed in gold mining.
Responsible gold mining is part of a
wider ‘value chain’ of activity which is
adding significant value to national
economic development and, ultimately,
the global economy.
Benefits of large-scale formal gold mining
PwC estimates that formal gold mining in the top 15 gold producing countries employed
nearly 530,000 people in 2012, and added US$78 billion to national economies
direct jobs in large-scale in gold mining
528,000
added value per tonne of gold mined
US$36 million
28

29. Partnership
Advancing the case for gold – our track record
We live in an interdependent world. No institution can strike out
on its own and expect a hearing. The World Gold Council has
taken this to heart, developing commercial and educational
partnerships with top organisations and institutions that create
structural shifts in demand for gold.
At the centre of the world’s financial
markets you find gold. Our global
research provides leading edge
investment insights, illustrating gold’s
strength as an asset class and a
preserver of wealth.
We engage with governments and
supranational organisations. We work
with central banks to demonstrate how
gold can help meet their strategic
investment objectives.
Half of the global demand for gold is
driven by the jewellery market. But this
is no nostalgia trip. The future is being
made now.
Gold is attaining new relevance and
allure for younger generations. We
support top designers whose creations
cater for the rising aspirations of new
consumers around the world.
In technology, we work with world-class
organisations who use gold to break new
ground in areas such as nanotechnology,
medical diagnostics, automotive
emission controls and the innovative
delivery of drugs.
We have a voice. Our involvement in
seminars, think tanks, finance meetings
and events attended by global leaders
puts us centre stage in informing and
shaping the case for gold.
The world’s appetite for gold remains
strong. Gold mining in many developing
nations contributes to the national
economy and local communities,
enabling investments in infrastructure
such as schools and transport. Our
Members, who comprise the world's
leading gold mining companies, work to
ensure that gold mining continues
sustainably and responsibly, reinforcing
the trust that people place in this
precious metal.
Working in partnership
“The world of gold is dynamic, resilient, varied,
and complex. It is our privilege to play a part in a
world advanced by gold.”
• Conflict-Free Gold Standard, the first
industry-led code on conflict-free
gold
• SPDR® Gold Shares (GLD), the
largest physical bullion-backed
exchange-traded fund (ETF)
• ICBC Gold Accumulation Plan gold-
backed savings accounts, with over 9
million accounts in China
• Azva, the new Indian wedding gold
jewellery brand, now in distribution
with top retailers in 40 major cities
across India
• UC Berkeley executive education,
training 27 of the world’s senior
central bankers
• Pioneered the use of gold in
automotive emission control with
leading industrial innovators
• Seed-funding for technology start-
ups and support for cutting-edge
research
• Leading-edge research, including
Gold Demand Trends, Gold Investor
and Gold Bulletin
• pro aurum - a new online platform
allowing banks to offer gold
investment and savings products in
Germany
29

30. World Gold Council
10 Old Bailey, London EC4M 7NG
United Kingdom
T +44 20 7826 4700
F +44 20 7826 4799
W www.gold.org