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 2019, gold had the third highest average daily trading volume globally, after U.S. Treasuries and S&P 500-stocks.
Gold is widely used in the global investment industry. As of the third quarter of 2020, around 495 metric tons of gold was used for investment purposes, which was the most common use for gold, followed by the jewelry industry. The demand for gold bars fell dramatically in 2014, but has remained steady since then, whereas demand for gold coins has remained relatively stable.