Historically, gold has been an excellent hedge against inflation because of its tendency to increase in value when the cost of living increases. Because of its stability and the rate of return as an investment, it is an attractive commodity. In 2018, gold had the sixth highest average daily trading volume globally.
Gold is widely used in the global investment industry. In the second quarter of 2019, 282 metric tons of gold was used for investment purposes, which was the second most common use for gold after the jewelry industry. Demand for gold bars fell dramatically in 2014, but has remained steady since then, whereas demand for gold coins has remained stable.