The 2022 FIFA World Cup kicked off in Qatar last November. In this issue of Facing Facts, Refinitiv Metals Research analyzes the value of the 18K Gold Hercules Cup in terms of material materials, based on data provided by Eikon.
Face the facts: Gold and the World Cup
According to FIFA, more than 3.5 billion people watched the last World Cup, held in Russia in 2018. The final between France and Croatia attracted more than 1 billion spectators, making the trophy one of the most prestigious awards in sports. Last year's tournament began on November 20, with Qatar hosting Ecuador and the whole tournament was full of highlights. This World Cup is the first winter competition and the first time it has been held in a Middle Eastern country.
On December 18, 2022, the World Cup final, the winning team lifted the Hercules Cup, which was regarded by countless people as a priceless treasure. The trophy is made of 6.175 kg of 18K gold and contains 4.93 kg of pure gold.
The trophy, made of gold and malachite, is estimated at more than $20 million, but to commemorate the launch of the "World Cup Qatar 2022" Eikon app, the Refinitiv metal research team analyzed its melting value back to 1974, when the trophy was first awarded. At recent prices, the gold content in the trophy is worth about $260,000, an appreciation of more than 1,350% from when it was born (its value was estimated at about $18,500 at the time). It has increased in value by about $80,000 since the last edition, as the 2019 US-China trade war and the uncertainty caused by the pandemic in 2020 led to a sharp rise in gold prices. Despite the impact of the gloomy economic environment on gold in 2022, price levels remain high compared to the period between 2012 and 2018.
Other trophies
Although the Champions League is the most prestigious competition in European club football, its trophies are actually worth less than those of the Europa League. In fact, Real Madrid, winner of the 2021 UEFA Champions League, took home the sterling silver trophy with a melting value of $4,600 less than the Europa League trophy. The current version of "Ol'Big Ears" or "La Orejona" (nickname for the UEFA Champions League trophy) has been in use since 2006. At the time, its melt value was even lower, at just $2785. In contrast, the European Cup trophy is the heaviest of the UEFA trophies, with a staggering 15kg of sterling silver. However, fluctuations in the price of silver mean that the melting value of this trophy has changed considerably over the past decade. Take a look at the comparison below.
Silver prices have fluctuated sharply over the past 20 years
If there were one word to describe silver's price performance over the past 20 years, the word "volatility" would definitely be shortlisted. For example, after hitting an all-time high of about $48/oz in April 2011, silver prices fell nearly 30% in just three months. That high made the UEFA trophy melt worth as much as $21,000 at one point. The price of silver fluctuated wildly in both directions, for example, at the outbreak of the pandemic, the price increased by 242% in just five months. The gold-silver ratio shows considerable volatility recently. After the fall in silver prices in mid-March 2020, the gold-silver ratio reached 128 (meaning 128 ounces of silver is equivalent to 1 ounce of gold in terms of price), surpassing the all-time record high of 99 at the beginning of World War II and the peak of 91 reached during the 1991 Gulf War.
American Sports Trophy
The BorgWarner Trophy, 1.62 meters tall and made of sterling silver, is the top prize for the Indianapolis 500 Mile. It is made from 69 kilograms of sterling silver and has a melted value of more than $40,537. It is also one of the biggest (and heaviest) trophies in all sports. The Woodlawn Vase is used to reward the winning horse owner of the Preakness Stakes tournament at the Pimlico Race Course. It is made of sterling silver, weighs more than 11 kilograms and has a melted value of more than $10,633. More internationally known, however, is the Vince Lombardi Trophy, which is awarded to the National Football League (NFL) Super Bowl winner, produced by Tiffany & Co. and uses 3.2 kilograms of sterling silver worth about $2,442. This trophy is awarded directly to the winning team of the Super Bowl and is replicated every year.