5 little-known but surprising facts about Gold as an asset. Do you know them all?

While no one can accurately predict where this gold rally will stop, investors can benefit by understanding gold more deeply as an investment asset. In this context, this article highlights five little-known but surprising facts about gold, according to a recent report by the World Gold Council (WGC).

WGC says physical gold holdings by investors and central banks are worth around $5.1 trillion, while gold’s trading volumes averaged a record $329bn per day during H1 2025.

"In this sense, the gold market is more liquid than several major financial markets, including the Dow Jones Industrial Average, while trading volumes are on par with 10-year US Treasuries and exceed the most traded US equities."

Gold has very long track record as a financial asset. In the past 50 years, the price of gold in US dollars has increased by around 8% annually. WGC says this performance is comparable with equities and higher than bonds.

While gold's value as a safe-haven asset has been reinforced in the current period of economic instability, the yellow metal has now become the world's second-largest reserve asset after the US dollar.

"During the current period of economic instability, gold has also reinforced its credentials as a safe-haven asset and a great diversifier in mixed portfolios, with 49% of financial advisers agreeing this is a strength," WGC said, citing State Street.

"In June 2025 the European Central Bank revealed that gold has now overtaken the euro to become the second-largest global reserve asset after the US dollar," it added citing The Times.

Not even a small part of the gold goes to waste. It's a 100% recyclable asset.

WGC says gold plays a crucial part in technology and healthcare products, while the high levels of gold recycling make it one of the most circular assets in the world.

"In general, just about every ounce of gold that has ever been mined is still being used. 'It’s as close to 100% recycling as you can get," the report says quoting Randy Smallwood, Chief Executive Oficer of Wheaton Precious Metals.

Gold is not a yield-generating asset. In other words, it doesn't provide a regular income like a bank deposit or rental real estate. The yellow metal simply sits in your portfolio and earns you money when you sell after its price has appreciated.

"And, unlike asset classes such as bonds and property, gold doesn’t provide a regular income. This is cited by the majority (54%) of financial advisers, who say the fact that gold doesn’t pay coupons or dividends hinders its investment potential," the report says.