Do you know the history behind the World Gold Council and its significant impact on the gold industry? This organization influences the mining industry as well as corporate gold buyers and sellers. Today, we’ll delve into the history of this organization, as well as its mission and some of the industry standards the Council has founded that “build confidence in the gold market by creating and upholding standards for transparency and integrity across the gold value chain.”
The Founding of the World Gold Council
The World Gold Council was founded in 1987 after a merger with South African company Intergold. Several mining companies came together to form the World Gold Council as a response to the growing need for standardized practices in the gold industry.
By bringing together key stakeholders and experts in the field, the council was founded with a clear vision to promote responsible mining practices and drive sustainability in the production of gold.
Mission and Objectives of the Council
The World Gold Council is a non-profit organization that today includes 32 members which include some of the largest gold mining companies. The Council focuses its work around three key pillars meant to maintain ethical and environmentally-conscious practices:
- Improving understanding
- Improving access
- Improving trust
Improving Understanding
The World Gold Council focuses on increasing understanding of how gold can be leveraged as an asset across a variety of economic and geopolitical backgrounds. One of the major focuses is publishing educational content about gold, the gold mining industry, and the impact both have on society worldwide. This has resulted in a few docuseries about gold over time as well as more in-depth reports about the positive social and economic impacts of gold mining.
Improving Access
The Council works to create a stronger and more ethical gold mining industry through new technologies, data, and progressive partnerships. In 2004, they launched SPDR® Gold Shares which began physically backed Exchange Traded Funds (ETFs).
They’ve also collaborated with industry experts, regulators, and policymakers to facilitate more market efficiency, tackle some investment barriers, and uncover new opportunities for gold.
Improving Trust
Since 1987, the World Gold Council has created industry standards, like the Conflict-Free Gold Standard, to make sure transparency and integrity remain a central part of the gold industry. These have been developed with the help of gold market stakeholders and the standards have been created based upon needs for different parts of the gold market including mining, retail investing, and accounting.
The Influence of the Conflict-Free Gold Standard
The Conflict-Free Gold Standard (CFGS), developed by the World Gold Council, has played a crucial role in shaping the gold market by promoting transparency and accountability in the supply chain. This standard not only helps to prevent the financing of armed conflicts but also ensures that mining operations adhere to social and environmental standards. We’ve written about the CFGS that you can read here.
From its humble beginnings to its current standing as a leader in shaping the future of responsible gold mining, the World Gold Council has made a significant impact on the industry. Their mission to set standards and promote ethical practices in gold mining has not only influenced the way gold is extracted but also the way consumers perceive this precious metal.