Gold demand could be set to rise in the next decade thanks to
the environmental benefits of the precious yellow metal.
According to the World Gold Council, analysis of greenhouse
gases and carbon emissions has found that gold is far better
for the environment than the likes of steel, coal, or aluminium,
and that per Dollar of investment, gold is one of the least
damaging resources in the world.
Terry Heymann, the Chief Financial Officer of the WGC (pictured
right), was recently speaking at the annual Gold Forum and
highlighted the campaign of the One Planet Sovereign Wealth
Fund Working Group. The organisation, according to Heymann,
is looking to go green with gold as part of a hunt for sustainable,
environmentally-friendly investments.
Speaking at the event in Colorado, Heymann said: "The metal
has a lot going for it. Gold might provide an effective hedge
against the disruption and volatility that adapting to climate
change was likely to bring."
While Mr Heymann had no exact figures for expected demand, he argued that gold perfectly fits the type
of investment the Wealth Fund Group seek, and that the interest of such a large funding group shows the potential for additional gold demand in the future.
Gold, like silver, is already used in energy technology such as long-life batteries, solar panels, and other renewables. As the world tries to shift away from fossil fuels and oil dependency, so gold’s profile will rise
– a resource that connects the old world with the new.
According to the World Gold Council, they are now working on a new reporting criterion. This will allow miners, mining companies, and investors to track and monitor the impact of gold and the gold industry relative to climate change, as well as showing changes to performance and output cast against global figures for temperature, pollution, and other things such as freak weather. The hope is that the data will allow companies to alter their approach bit by bit and make self-improvement a worthwhile investment rather than a costly one.
