The World Gold Council today announced the launch of Qaurum, an innovative web-based tool designed to deliver a robust quantitative approach to analysing how gold may react under diverse macroeconomic and geopolitical conditions.
Behind its user-friendly interface, Qaurum is powered by the Gold Valuation Framework (GVF). An academically validated methodology, GVF is based on the principle that the price of gold and its performance can be explained by the interaction of demand and supply.
GVF and Qaurum were developed in response to research suggesting that institutional investors cite the lack of an established approach to valuing gold as a key barrier to investment.
“One of the World Gold Council’s key mandates is to reinforce gold as a mainstream investment asset,” said John Reade, Chief Market Strategist. “Qaurum is an important step in that direction because it provides investors with a framework for evaluating gold’s performance consistent with approaches used for other asset classes. This empowers more incisive decision-making around strategic and tactical allocation decisions.”
Accessible from Goldhub.com, World Gold Council’s data and research site, Qaurum empowers investors to assess how gold might react across different economic environments in three easy steps:
- Select a hypothetical macroeconomic scenario provided by Oxford Economics, a leader in global forecasting and quantitative analysis, or customise your own
- Generate forecasts of demand and supply and view the impact of key macro drivers
- Calculate and visualise implied returns for gold
- The scenarios from Oxford Economics are updated quarterly to reflect timely and relevant considerations.
“Because gold has a unique dual nature as both a consumer good and an investment, some view its performance as unpredictable,” said Juan Carlos Artigas, Director of Investment Research and the project lead for this initiative. “Qaurum does not forecast gold price. Rather it helps investors intuitively understand gold’s drivers and the connection between demand, supply and financial, economic and geopolitical events.”