Gold, a safe and long-term value25/05/2020
From Golding Life we verify daily that the idea that gold is a long-term value, with a guaranteed profitability, is installed in public opinion. But what is less known are the numbers, the precise data of that profitability. When our customers call for counseling it’s when they ask us questions, because they know that our information is precise: we follow minute by minute the evolution of prices and the market. And although the price of gold is influenced by some variables, as we will discuss in another article, its appreciation over time is continuous.
We’ll give an example to descend into the world of the concrete. In the spring of this 2020 year, Russia announced a change in strategy. Russia has been the largest buyer of gold in recent years. Its excess liquidity was invested in the metal. The fundamental reason is to have a reserve in anticipation of changes in the environment and in the markets.
In the spring of 2020, the Central Bank of Russia not only stopped purchases, but began to sell its gold reserves. What was the reason? The price of oil had fallen due to the contraction in demand. The coronavirus paused the economy and the crude oil market stopped. Therefore, the main source of income of the Russian state weakened. Russia needed liquidity to face its payment commitments. And here two constants were demonstrated once again: that gold is very liquid and can be easily converted, and that its appreciation offers us a profitability that very few products, physical or financial, can guarantee.
Let’s make a little price comparison. In 2000 the kilo of gold had a value of $11,081. The reserves of Russia in that year were 384 tons. In 2020 the reserves reached 2168 tons with a value of $54,432 per kilo. This represents a profitability of $43,351 per kilo in twenty years. Make the simple rule of three and you will see that in those two decades gold appreciated by 391.2 PERCENT. Do you know something that gives you more profitability?
Now think about your own economy, company economy, family economy. And translate this example into your own world. Golding Life, through gold, offers you security and profitability, in the medium and long term. So that your financial situation and the possibility of realizing your dreams and companies don’t depend exclusively on the ups and downs of the market, on the instability caused by events. There’re many customers and entrepreneurs who write to us and tell us: “my son’s college tuition was paid with a saving in gold that I started to collect ten years ago”, or “the payrolls of my workers in the first month of the pandemic have been paid thanks to some savings that we had in gold, and we have turned it into liquid money without paying VAT”.