Kosov M.E.Financial University under Government of Russian Federation, Moscow, Russian Federation email@example.com ORCID id: not available
Subject In today's volatile global economy and political situation, gold is a particularly important asset for any financial and economic system. The global gold market has a number of obstacles to its development. Despite the transparency of information provided by exchanges, the largest producers, and government agencies, the market is fragmented, and the data on the total market size is collected from various sources and estimates, and is often scattered. Objectives The purpose of the study is to analyze the global gold market, determine its development trends and barriers to its growth. Methods I employ methods of measurement, comparison of statistical information, analysis and synthesis. Results The paper discloses tendencies, problems and barriers to the gold market development. The findings may be useful to foster the gold market in Russia, to adjust it to external environment. Conclusions As part of international reserves, gold tends to grow due to high level of trust. There is a potential for investment demand growth. The global gold market is characterized by erratic quotes and dependence of pricing on investment factor and speculative demand, monopolization by the largest players, reduction in explored reserves and deteriorated quality of new deposits, high costs at low prices. These factors lead to negative profitability and bankruptcy of some of the largest companies, market imperfection, and information asymmetry.
Keywords: global market, gold, gold and foreign exchange reserves, central bank
Altin H., Şahin M. Macroeconomic Affects on Stock Markets: An Empirical Analysis for Developed, Emerging and Financial Suffering Countries. Middle Eastern Finance and Economics, 2011, iss. 13, pp. 71–89. URL: Link
Wang M.L., Wang C.P., Huang T.Y. Relationships among Oil Price, Gold Price, Exchange Rate and International Stock Markets. International Research Journal of Finance and Economics, 2010, no. 47, pp. 215–218.
O'Connor F.A., Lucey B.M., Batten J.A., Baur D.G. The Financial Economics of Gold – A Survey. International Review of Financial Analysis, 2015, no. 41, pp. 186–205. URL: Link
Bhatia A. Optimal Gold Allocation for Emerging-Market Central Banks. RBS Reserve Management Trends, 2012. URL: Link_ allocations_for_emerging-market_central_banks1_0.pdf
Mironov D.I. [Factors affecting the price of gold]. Biznes v zakone = Business in Law, 2011, no. 2, pp. 248–251. (In Russ.)
Shchegoleva N.G., Khabarov V.I. [Transformation of gold market and its perspectives]. Finansy i kredit = Finance and Credit, 2012, no. 25, pp. 31–39. URL: Link (In Russ.)
Borisovich V.T., Gaganov S.Yu. [Investment entity of gold as a basis for efficiency gold mining]. Izvestiya vysshikh uchebnykh zavedenii. Geologiya i razvedka = Proceedings of Higher Educational Establishments. Geology and Exploration, 2015, no. 3, pp. 73–79. URL: Link (In Russ.)
Loginov E.L., Lukin V.K., Loginova V.E. [Combined gold and foreign currency transactions in global financial markets: A new USD strategy of the United States]. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience, 2015, no. 17, pp. 2–10. URL: Link (In Russ.)
Narkevich S. [Gold and foreign exchange reserves: History, definition, composition and modern functions]. Voprosy Ekonomiki, 2015, no. 4, pp. 86–105. URL: Link (In Russ.)
Gaganov S.Yu. [Research of demand for gold as a tool of influence on the national economics]. Rossiiskoe predprinimatel'stvo = Russian Journal of Entrepreneurship, 2014, vol. 15, no. 7, pp. 10–25. URL: Link (In Russ.)
Grinspen A. The Age of Turbulence: Adventures in a New World. London, Penguin Books, 2008, 608 p.
Parshina L.N. [The role of gold in reserves of countries]. Finansy i kredit = Finance and Credit, 2016, no. 23, pp. 2–8. URL: Link (In Russ.)
Al'shanskii L. [Gold of central banks]. Rynok tsennykh bumag = Securities Market, 2013, no. 4, pp. 55–57. (In Russ.)
Ermakov V.V. Is gold no longer a safe haven?]. Bankovskoe delo = Banking, 2015, no. 3, pp. 24–25. URL: Link (In Russ.)
Fedorova E.A., Lanets I.V. [Investment in precious metals: Assessment of internal spillover-effects]. Finansy i kredit = Finance and credit, 2013, no. 48, pp. 2–6. URL: Link (In Russ.)
Fedorova E.A., Lanets I.V. [Investing in precious metal market, considering the dynamics of the world markets]. Audit i finansovyi analiz = Audit and Financial Analysis, 2013, no. 5, pp. 243–247. URL: Link (In Russ.)
Rubtsov N.N. [Gold-based monetary system]. Rossiiskoe predprinimatel'stvo = Russian Journal of Entrepreneurship, 2015, vol. 16, no. 4, pp. 541–554. URL: Link (In Russ.)
Nikulin A.A. [The world gold market: Current status and prospects of development]. Problemy natsional'noi strategii = National Strategy Issues, 2015, no. 1, pp. 151–174. URL: Link (In Russ.)
Oleinikova I.N. [Te gold market: International experience and Russian practice of functioning]. European Social Science Journal, 2014, no. 4-2, pp. 472–479. (In Russ.)
Borisov A.N. [Gold in the world monetary system]. Voprosy ekonomiki i prava = Problems of Economics and Law, 2013, no. 58, pp. 137–152. URL: Link (In Russ.)