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World Gold Council December World Gold Council Responsible
quarter 2021 facts: Gold Mining Principles:

Gold demand reached 1,147t, the Governance
highest since Q2 2019 and an increase - Ethical conduct
of almost 50% year-on-year - Understanding our impacts
Annual demand recovered many - Supply chain
COVID-induced losses of 2020 to reach Social
4,021t for the 2021 full year - Safety and health

Gold bar and coin demand rose 31% - Human rights and conflict
to an eight-year high of 1,180t - Labour rights
- Working with communities
Gold-backed ETF outflows of 173t
for 2021 Environment
- Environmental stewardship
Jewellery sector rebounded to match - Biodiversity, land use and closure
2019 pre-pandemic total of 2,124t, - Water, energy and climate change
following strong Q4 demand (highest
since Q2 2013)

Central bank net purchases for 12th
consecutive quarter, adding 463t to
holdings, which was 82% higher than
2020

Gold use in the technology sector
increased 9% to reach a three-year high
of 330t

secure because of blockchain but you still have to have the trust
of the counterparty, there is no physical bar.”
Increased regulation of the previously unchecked cryptocurrency “We are working with the London Bullion Markets Association
market could also have an impact on demand for the digital and a group of experts on applying technology to track product
asset. through the supply chain. However, the secondary nature of the
“There is certainly regulatory and fiscal risk in crypto,” Naylor market means once in the retail market, gold can exit the chain
said. “India has introduced a capital gains tax on crypto and the of custody. There is technology being developed to scan the
EU is looking at new regulations, including licensing for brokers, gold, the challenge is bringing that all together and capturing it
capital buffers, etc.” in a ledger.”
Despite his counterargument, Naylor does admit to Naylor said World Gold Council members were increasingly
cryptocurrencies causing disruption in gold circles. aware of the need to uphold and report on the ethical production
and distribution of their gold. He said the Council’s Responsible
“There are important lessons for the gold market, particularly
Gold Mining Principles had harmonised the approach of
around changing consumer trends and the appeal of digital
producers across governance, social and environmental issues.
marketing,” he said.
“On decarbonisation, the industry is showing what we are doing
If blockchain technology has created a threat in one sense, it is
to reduce our carbon footprint,” he said. “Producers are making
also offering clarity for the gold sector.
a lot of advances on using electric equipment and promoting
“The gold market needs to provide a level of transparency
gold’s use in decarbonisation technology.”
because investors are beginning to demand provenance from
an ESG perspective. Digitisation is allowing industry to track
supply,” Naylor said.

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