# What Is the World Gold Council? Unveiling Its Role in Gold Demand

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## What Is the World Gold Council?

The World Gold Council or the WGC is a [nonprofit](https://www.investopedia.com/terms/n/non-profitorganization.asp) association of the world's leading gold producers. A market development organization for the gold industry, the World Gold Council includes 33 members and many members are gold mining companies. The WGC was established to promote the use of and demand for gold through marketing, research, and [lobbying](https://www.investopedia.com/terms/l/lobby.asp). Headquartered in London, the WGC covers the markets which comprise about three-quarters of the world's annual gold consumption.

### Key Takeaways

*   The World Gold Council (WGC) is a nonprofit association formed by leading gold producers to promote and increase demand for gold globally.
*   Based in London, the WGC supports gold usage through marketing, research, and lobbying efforts, covering markets responsible for around three-quarters of the world's annual gold consumption.
*   The council also plays a crucial role in encouraging the development of new uses for gold, such as high-purity gold jewelry and other innovative products.
*   As the creator of the first gold exchange-traded fund (ETF), the WGC provides individual investors an attractive alternative investment option due to ETFs' liquidity and cost advantages over mutual funds.
*   The WGC advocates for gold's use as a commodity and investment, highlighting its non-monetary applications in jewelry, electronics, and dentistry, which contribute to sustained real demand.  
    

## How the World Gold Council (WGC) Advocates for Gold Consumption

The WGC is an advocate for gold consumption. The WGC aims to maximize the industry's potential growth by monitoring and defending existing gold consumption. It also co-sponsors research in the development of new uses of gold, or of new products containing gold. For example, successful projects supported by the gold industry have led to the development of jewelry containing 99% gold. The organization's specific purpose is to stimulate and sustain the demand for gold.

## A Brief History of Gold: From Ancient Egypt to Modern Investment

Gold traces its origins to Ancient Egypt, where they first smelted gold around 3600 B.C.E. Today, gold is sought after for investment purposes and is also used in the [manufacturing](https://www.investopedia.com/terms/m/manufacturing-production.asp) of numerous electronic and medical devices. Much of the world's gold was mined in the modern, postwar era and gold-mining operations take place on every continent except Antarctica. In recent decades, more countries have emerged as gold producers. As a result, gold mining has become less geographically concentrated and more stable. Today, the top producing countries are China, Russia, Australia, the U.S., Canada, Peru, and Ghana.            

## Investing in Gold: The WGC's Contribution and the Role of ETFs

Gold is attractive as a [commodity](https://www.investopedia.com/terms/c/commodity.asp) and an investment. Because gold has non-monetary uses, such as jewelry, electronics, and dentistry, it retains a minimum level of real demand. It is also impossible to perfectly counterfeit and has a [fixed stock](https://www.investopedia.com/terms/f/fixedasset.asp); there is only so much gold on Earth, and inflation is limited to the speed of mining.

The WGC was the creator of the first [gold exchange-traded fund](https://www.investopedia.com/terms/g/gold_fund.asp). An exchange-traded fund or ETF is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike a [mutual fund](https://www.investopedia.com/terms/m/mutualfund.asp), an ETF trades like a common stock on a stock exchange. Considered an attractive alternative investment for individual investors, ETFs typically have higher daily liquidity and lower fees than mutual fund shares. In fact, ETFs experience price changes throughout the day as they are bought and sold. Gold experts manage the GLD ETFs, increasing the likelihood of a positive investment.

> **Article Sources**
>
> 1.  Traders' Insight. "[Top 10 Gold Producing Countries 2020](https://www.tradersinsight.news/traders-insight/securities/commodities/top-10-gold-producing-countries-2/)."