Gold Investor, February 2019

The world of data has been transformed over the past decade. Described as ‘the new oil’ by pundits and policymakers, data is both more available and more valuable than ever before. However, quantity does not necessarily equate to quality.

Greater volumes can reveal interesting patterns and trends, but they can also sow confusion. Lack of transparency and inconsistent formats can stymie interpretation. Delays in publication can affect accuracy. And data that is hard to locate or not collected at all can create worrying gaps in user knowledge and understanding.

All these issues are prevalent in today’s data-driven world. And they can have serious consequences for users, such as analysts and asset owners.

A significant proportion of the investment universe feels unable to invest confidently in gold because they lack the knowledge to do so.

Data and gold

Against this background, the World Gold Council commissioned two detailed surveys to assess the impact of data on gold investment decision making. The first covered central banks, asset managers, pension funds, sovereign wealth funds, investment banks and investment advisers across all geographic regions. The second focused on US-based pension funds and investment consultants. In both cases, fewer than half those surveyed – around 40% – felt they had access to sufficient data to make an investment decision on gold.¹

In other words, a significant proportion of the investment universe feels unable to invest in gold because they lack the knowledge or confidence to do so. The gold market is complex and certain pockets are relatively opaque, so their wariness is understandable. But efforts are underway to improve the situation and create a better decision-making environment.

As the market development organisation for the gold industry, the World Gold Council is at the forefront of change.

Recognising that credible information is a prerequisite for investors, we seek to apply high standards to the data we provide, which is sourced from several well-regarded sources. Detailed methodology notes further aid transparency and promote understanding. Visual analytics and data downloads on Goldhub allow investors to engage with gold market data directly too, enabling them to develop their own insights and conclusions.

Usability, breadth of data and depth of knowledge make Goldhub relevant to both investors with existing positions in gold and those who are new to the asset class.

Goldhub brings together key gold market data, expert research and interactive tools in one accessible and easy-to-use location. Providing valuable insight and analysis, it is a uniquely centralised resource.

Evolution

Good data is undoubtedly critical for decision making. But it needs to be structured and contextualised so there is clarity around what it is, why it is valuable and where potential pitfalls lie. And that is the essence of Goldhub. Goldhub is intended to be a repository for credible and reliable gold data – a centralised resource for effective analysis and confident decision making.