A forthcoming white paper will detail how digital products can be anchored to physical gold.
With global gold demand at its highest level on record, the World Gold Council is considering ways to simplify access to physical gold, including pooled gold interests and wholesale digital gold.
Chief financial officer Terry Heymann told Moneyweb on the sidelines of this year’s Mining Indaba in Cape Town that the initiatives are aimed at making gold trading more accessible to a wider range of investors.
“One of the great things about gold is just how diverse the demand is and continues to be,” Heymann says.
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God demand reaches new record
The World Gold Council’s latest Gold Demand Trends report shows that global gold demand reached a new record in 2025. Total demand, including over-the-counter activity, rose to 5 002 tonnes – the highest annual level ever recorded – while the value of gold demand climbed to a record US$555 billion (R8.8 trillion).
Investment was the most important driver, supported by strong inflows into exchange-traded funds (ETFs), as well as bar and coin buying, alongside continued central-bank purchases and resilient jewellery demand despite higher prices.
Heymann says that despite concerns that rising gold prices could dampen appetite for jewellery, consumers continue to put money into gold jewellery.
Pooled gold interests and digital access
Against this backdrop of sustained demand, the World Gold Council is looking closer at more ways to access physical gold.
One such innovation is pooled gold interest, a concept aimed at institutional investors that would expand how large holders access physical gold.
“Where traditional allocated gold is tied to discrete 400-ounce bars – each valued at roughly $1 million-plus (R15.9 million*) – pooled interest allows institutions to hold exactly the ounces they want without the bankruptcy risk associated with unallocated gold.” (Unallocated gold gives investors exposure to gold, with their holding linked to an institution rather than to specific bars of gold.)
“Pool gold interest gives investors access to physical gold, but in a way that you can have exposure to however much gold you want … rather than be constrained about having to deal in units of 400 ounces at a time,” he explains.
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Regulatory approval
The initiative still requires regulatory approval in the UK and is expected to move into a pilot phase in the first half of this year.
On the digital gold front, Heymann says there is clear potential, although the market remains at a relatively early stage of development. “I think lots of us, frankly, are trying to get our heads around this decentralised finance world we are increasingly living in,” he says.
While traditional ETFs already offer a form of digital access to gold, new products on crypto-style exchanges appeal to investors who want to gain access to gold in a digitalised landscape in much the same way as they gain access to Bitcoin and Ethereum, according to Heymann.
Digital gold is offered in digital form but is physically backed. “There will be a bar somewhere that represents that interest that an investor has,” he says.
Digital gold could broaden the range of retail products available, particularly for investors who are uncomfortable with taking physical custody of gold.
The World Gold Council is preparing a white paper on how digital products can be linked to physical gold, with Heymann saying this will outline ways the organisation might support further development of the digital gold market.
Gold outlook
Meanwhile, a panel of industry experts at the indaba highlighted the structural demand drivers for gold into 2026.
Luke Alexander, chief executive of Newcore Gold, says central-bank buying remains a key driver. Shifts away from US dollar assets have strengthened the case for gold, particularly following episodes of geopolitical stress.
“The biggest catalyst for the gold price moves we’ve seen was when the US came in and shut down SWIFT for the Russians. On the back of that, governments around the world said maybe their assets in US dollars are not so secure. Gold, on the other hand, could be used as a means of payment.
“That’s why we’ve seen so much buying by central banks – it’s diversification away from the US dollar,” Alexander argues.
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Drivers of interest in gold
Equity analyst Richard Hatch at Berenberg notes heightened interest from generalist investors in gold mining equities, driven by strong cash flows and growing recognition of precious metals’ role in diversified portfolios.
Alexander adds that gold mining companies’ cash flow, dividend yield, Ebitda and returns to shareholders are currently “extremely attractive”.
“Still, the sector is fundamentally under-held by generalist investors. We’ve started to see they are paying more attention, and that will be a major driver for the equities when these investors come in and start valuing mining companies relative to the way they price other sectors,” he notes.
*$1 = R15.94
This article was republished from Moneyweb. Read the original here.