from Sprout Money:
Most people think that gold only acts as an insurance against volatile and nervous times on either the macro-economic front or the stock market in general. This conventional thinking is actually incorrect, and the World Gold Council was able to put some numbers on some wrong perceptions of the gold price.
The correlation between GDP growth and the consumption of gold might be closer than you think, as the WGC estimates that for every one percent increase in the GDP, the demand for gold to be used in for instance jewellery increases by 5%. This makes a lot of sense as an increased GDP indicates an increased wealth per capita and thus more purchasing power. As the first part of the disposable income is being spent on basic needs (food, housing,…), any increase in wealth allows for more income to be spent on so-called luxury goods.
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