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 2016, gold had the seventh highest average daily trading volume globally.
Gold is widely used in the global investment industry. In the fourth quarter of 2016, SPDR Gold Shares was the largest physically-backed gold exchange traded funds with 822.2 tonnes of assets under management. Demand for gold bars fell dramatically in 2014, but has remained steady since then, whereas demand for gold coins has remained stable.