Investment gold

Gold - the word itself exudes something unique and fascinating to be found on this planet. Gold is a metal that has fascinated humans and entire civilizations since time immemorial, and this function has endured to this day.

Investment gold as the right choice in today's uncertain world

Ancient civilizations considered gold and gold objects as an aesthetic element but in today's dynamic and uncertain world its function is quite different. It is an instrument of power and most importantly a source of security and a store of value.

Investment gold is a form of gold that is used today as a kind of investment instrument, similar to securities, real estate investments, works of art, etc. Today, a potential investor can choose from two categories that can be suitably used for his gold investment.

These are the category of investment gold bullion and investment gold coins. These two categories are used as investments to store paper money and are not in the area of collecting or numismatics.

Investment gold coins and bullion are tangible assets that are highly liquid worldwide. Coins and bullion are well known among investors and acceptable on world markets. You can have a coin from one end of the world and sell it on the other end of the world, familiarity brings great liquidity.

Buying investment gold is buying physical metal of a given weight. Investment gold bars and coins come from world renowned refineries and mints, in Europe these include Swiss investment gold from Argor Heraeus or Pamp, German investment gold from Heraeus and Austrian investment gold from Münze Österreich. The long history and good reputation of the producers ensures acceptability and liquidity on world markets. The price of gold is based on current developments in the commodity markets. Gold is traded all over the world, the main and important role for the gold price is played by the so-called London fix, which is announced twice a day on trading days, namely AM (morning at 10:30) and PM (afternoon at 15:00). Gold bullion traders execute their trades at the spot price of gold plus a premium, which is a mark-up on the price.

Investing in gold is also suitable for retail investors

Nowadays, almost anyone can buy investment gold, and it is not just the preserve of the very rich, but a growing number of small investors are choosing to invest in gold because they see security in the yellow metal. In the category of investors we can include the aforementioned retail investors, but also speculators who are betting on gold rising or falling and behaving as such at any given time, as well as states and their central banks across the world. It can be said that gold has a presence at all levels and its importance is constantly growing.

Investment gold bullion

Sold in the form of the commonly known gold bars (gold bars, bullion), which are minted or cast in various weights. Investors can buy bars weighing the classic troy ounce (Oz) - 31.103 g, or in other weights of 1 g, 2 g, 5 g, 10 g, 20 g, 50 g, 100 g, 250 g, 500 g or 1,000 g.

The ingots are produced in world-renowned refineries that conform to the London Good Delivery (LBMA) standard and are therefore easily accepted in world markets. Proof of authenticity (supplier logo, refiner, unique number, purity, weight) is declared on the top side of the ingot. The price of gold per unit weight decreases with increasing weight, as the costs of production, processing, insurance, transportation, margins, etc. are higher for lower weights, i.e. there is a higher premium. Investment gold bullion is exempt from value added tax. All the products we offer can be found in the investment gold bars category, including further details.

Investment gold coins

They are another form of investment in physical metal. Investors can purchase them in troy ounces (Oz) - 31.103 grams or also smaller weights such as 1/10 Oz, 1/4 Oz, 1/2 Oz or in multiples of ounces.

Investment gold coins come from world-renowned mints that have been minting coins in the millions for decades, giving the coins worldwide fame and liquidity. Investment gold coins are also exempt from value-added tax. The coins have certain advantages over bullion coins and full information and details on each coin can be found in the investment gold coins category.

Quality of investment gold

The amount of precious metal in bullion is usually quoted in thousandths. Gold marked 1000/1000 is pure gold, i.e. absolutely free of any impurities. The purest (purest) form can be seen on coins from The Royal Canadian Mint, which list purities up to 999.99/1000. It is therefore a so-called "five-nine" gold and is only issued as part of a special edition of coins.

Gold finenesses registered by the Assay Office in the Czech Republic:

• 999/1000 (24 carat gold): this is mainly investment gold in the form of coins and bars.
• 986/1000 (22 and 2/3 carat gold): this is mainly ducat gold for the production of coins
• 900/1000 (22 carat gold): used in the jewellery industry
• 750/1000 (18 carat gold): use in the jewellery industry
• 585/1000 (14 carat gold): use in the jewellery industry

History of gold

The history of gold is thousands of years long, gold was here before the first humans and the first civilizations were able to be captivated by the metal and began to use it. We can say that gold has travelled with human civilisation from its beginning to the present day and all indications are that it will be part of human civilisation in the future.

This precious and rare metal has brought with it both good and bad, it has been a source of wealth, prosperity, power, riches, but it has also brought disasters and destruction in the form of wars, conquests, plunder and suffering of entire nations. It can be said that gold has a shadow and dark side that persists.

Gold has accompanied all ancient human civilizations from ancient Egypt to the Aztec Empire, from the Indian kingdoms to Rome. Everywhere, gold was seen as part of that civilization. Richly decorated palaces, statues and temples are just a small list of wherever the yellow metal appeared. Its main function was beauty and aesthetics.

Gold as a means of payment

The function of gold as a means of payment only emerged over time, with the greatest expansion in the period of ancient Greece, where the first coins began to proliferate. At the beginning of this new era, coins contained as much metal as they were worth, but over time the ratio decreased and was replaced by other metals.

Gold as a store of value

Gold's function today is primarily as a store of value, a kind of safe store of wealth and property against the negative effects of today's times, today's economic system and the world. The yellow metal today is seen as a kind of "safe haven", a place that preserves value and protects in uncertain times.

Since the end of the gold standard in the 1970s, gold has taken a back seat to the era of 'paper', an era of reckless and endless money printing, which today can be described as a vast ocean of paper. And the trend continues unabated despite the risks that this printing entails. Gold is no longer able to keep up with the paper "army" and is therefore becoming an increasingly scarce and sought-after asset. Yes, it could adjust to the value of money, leading to a huge increase in price to cover the value of money. Printing brings with it the risk of inflation, debt, undermining the financial system, etc. Therefore, in today's economic situation and developments in the financial markets, it is very difficult to find an asset in which to invest that brings not only some appreciation but, above all, protection of wealth and assets. An asset that is a store of value.

More and more people are becoming aware of these risks in today's world and are looking for just such an outlet and a place to preserve their wealth. The demand for the yellow metal is not only growing among small investors, but is also very evident in entire countries of our world. The trend is changing and it is a well-known fact that whoever has the gold makes the rules, and today's superpowers and not only superpowers are aware of this.

Investment gold holdings in the world

To give you an idea, let's take a look at the top 10 gold holders in the world and the proportion of gold in their reserves in 2016:

India

Gold quantity: 557.7 t
Share of total national reserves: 6.3%

It's certainly no surprise that India's central bank is among the countries with the largest gold reserves in the world. With a population of nearly 1.3 billion, India, along with China, is at the imaginary top of the demand for this precious metal. The wedding season, which lasts from October to December, and the local festival of lights, Diwali, a five-day festival celebrated mainly by Hindus, Sikhs and Jains, have brought a huge increase in demand for gold. It is celebrated from mid-October to mid-November and is an official public holiday in India, Guyana, Trinidad and Tobago, Malaysia, Nepal, Singapore, Sri Lanka and Fiji. An integral part of the celebration is the lighting of small clay lamps (divas) filled with oil to symbolise the victory of good over evil. Participants usually wear new clothes for the occasion and give each other sweets. For some Indian financial institutions, the financial year begins on the first day of Diwali, which is supposed to bring them good luck for the next 12 months).

Netherlands

Quantity of gold: 612,5 t
share of total national reserves: 61,2 %

The Dutch central bank is currently looking for a suitable place to store its gold hoard and in the meantime is renovating its storage facilities. It has relatively recently 'repatriated' a fairly large amount of gold. The Netherlands repatriated 120 tonnes of gold worth four billion euros (111 billion kroner), which it had stored in the Fed's vaults in New York.

Japan

amount of gold: 765,2 t
share of the country's total reserves: 2,4 %

As the world's third largest economy, Japan ranks eighth in holdings of the yellow metal. The central bank there has carried out one of the most aggressive quantitative easing exercises while cutting its interest rates below zero. This has also helped to boost global demand for gold.

Switzerland

Gold quantity: 1 040 t
Share of total government reserves: 6,7 %

Switzerland, which also has the world's largest gold reserves per capita, maintains the seventh position. During the Second World War, this neutral country became the centre of the European gold trade. Today, it conducts much of its gold trade with Hong Kong and China. In the last quarter alone, the Swiss National Bank posted a profit of $5.9 billion, thanks largely to its large gold holdings.

Russia

Quantity of gold: 1 460,4 t
share of total national reserves: 15 %

Russia has consistently been a very active gold buyer. It has been rebuilding its gold reserves at a rapid pace and this trend has been going on for several years. In 2015, it showed a peak in purchases, adding about 201.6 tonnes of gold to its reserves. The aim was to dilute investment risk and wean itself off the U.S. dollar as the federation's relationship with the West has turned sour since the annexation of Crimea. In addition, Russia, along with China, is one of the main holders of US bonds and has recently divested extensively.

China

quantity of gold: 1 797,5 t
share of total national reserves: 2,2 %

China as it is known is considered the world's largest gold producer. It also proves this by continuously increasing its gold reserves. In December 2015, the Renminbi (Yuan) joined the International Monetary Fund and is considered one of the reserve currencies. Gold reserves represent only about 2.2 percent of total foreign exchange reserves, so it is certainly to be expected that purchases will increase dramatically in the future.

France

quantity of gold: 2 435,7 t
share of the country's total reserves: 62,9 %

The French central bank has sold very little of its gold in recent years and has shown a tendency to stop selling gold altogether and instead bring gold back into the country.

Italy

Quantity of gold: 2 451,8 t
Share of total national reserves: 68 %

Italy has also maintained its gold reserves over the years. Mario Draghi, former Governor of the Bank of Italy and current head of the ECB, let it be known back in 2013 that gold is a "safety margin" and a good hedge against dollar fluctuations.

Germany

Gold quantity: 3 381 t
Share of total government reserves: 68,9 %

We come to the second place, where Germany is. Like the Netherlands, Germany is in the process of repatriating its gold from foreign repositories, including New York and Paris. Last year alone, the Bundesbank repatriated 210 tonnes of gold.

The United States

Quantity of gold: 8 133,5 t
Share of total national reserves: 74,9 %

The USA is the world's number one gold producer - it has as much gold as France, Italy and Germany combined. At the same time, the share of the yellow metal in the country's total reserves is one of the highest percentages in the world (for the record, Tajikistan is second in this ratio, with more than 88% of its reserves). The above overview therefore shows that gold plays a significant role in the reserves of the world's leading powers and rich countries. Gold is bought all over the world. This is because of the aforementioned security, safety and stability in volatile times.