Gold:   1,551.20  EUR/OZ
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Investment Gold

Gold is a proven form of money saving and risk diversification, so it is a good addition to your investment portfolio.

Gold is the most reliable and time-tested asset

Gold always retains its value in any economic environment

For a long time, it was gold that was the foundation of the global financial system and still remains one of the world's strongest currencies.

States keep this precious metal as insurance and protection against inflation. Every year the search for new deposits becomes more and more difficult and expensive.

Scientists predict that in the next 10-15 years, people will extract all the gold from known and currently available deposits.

Global Production

Gold has been valued as a precious metal for more than six thousand years. This unique substance became a symbol of luxury and the equivalent of wealth in the 3rd millennium BC.

The chemical name of the element in the Mendeleev table is Aurum, which in Latin sounds like Goddess of the Dawn.

This element is rare in nature, so its extraction is a long search for a deposit and a labor-intensive process of extracting gold from ore and bulk rocks.

Gold reserves in the subsoil at the end of 2019 were 55.460 tons. This will maintain the current rate of global production only for the next 14 years. Subsequently, there will inevitably be a decline in gold mining and production, which will cause the cost to rise.

The production of gold on an industrial scale can be carried out only if the deposit is profitable – at least 3 g per ton of ore. Gold can also be obtained as a by-product of mining other raw materials, such as copper, as well as by extracting gold from electronics (so-called recovered gold).

Global Production

Gold is not mined in all countries. This is due to the rare occurrence of this element in nature, as well as to the complexity of industrial production technologies.

Until recently, South Africa, the USA, Australia and Canada were the main suppliers of gold to the world market. Back in 1995, these 4 countries accounted for 56% of the annual production. However, over the past 25 years, there has been geographic diversification, and in 2020 their contribution to global production fell to 24%.

Growth dynamics of production

Over the past 25 years, along with the diversification of production, there has been a significant increase in production

  • in 1995 — 2.299 tons
  • in 2018 — 3.556 tons (55% more than in 1995)
  • in 2019 — 3.531,8 tons
  • in 2020 — 3.400,8 tons
World map

Leading countries in gold mining

  • China 440 tons/year
  • Australia 300 tons/year
  • Russia 255 tons/year
  • USA 230 tons/year
  • Canada 175 tons/year
  • Peru 160 tons/year
  • South Africa 145 tons/year
  • Mexico 130 tons/year
Background

Refining Gold

Refining is the process of separating (purifying) precious metals from impurities.

Specialized refineries purify the gold of the highest 999 fine, check the actual weight and fineness of the bullion, and then brand the gold by the manufacturer, which indicates compliance with quality standards.

Refining gold
Refining gold
The refinery must be on the London Bullion Market Association's (LBMA) list of registered refiners.
There are three groups of refining methods, which can be used alone or in combination with each other:
  1. Dry, in which the molten gold is treated with chemical reagents or remelted with various fluxes.
  2. Wet, based on dissolving impurities in different acids.
  3. Electrolytic.

To obtain gold of the highest 999,9 and 999,99 fine, the electrolysis method is most commonly used.

Where is the mined Gold now?

  • Bank icon

    In the vaults of Central Banks

  • Businessman icon

    Owned by private investors

  • Ring icon

    In industrial and jewelry products, space, digital and medical equipment

Leading Countries in Gold Reserves for 2020
  • USA 8,133.5 tons
  • Germany 3,362.4 tons
  • International Monetary Fund 2,814.0 tons
  • Italy 2,451.8 tons
  • France 2,436.2 tons
  • Russia 2,295.4 tons
  • China 1,948.3 tons
  • Switzerland 1,040.0 tons
  • Japan 765.2 tons
  • India 676.6 tons

Interesting Facts

Interesting Facts #1

Gold is a very flexible metal. It can be used to make sewing threads. One ounce of gold (31,1 grams) can be stretched out to 80 km.

Interesting Facts #2

Scientists believe that about 10 billion tons of gold is contained in the waters of the world's oceans and seabed, but the methods that would make it possible and economically viable to mine it in such conditions don't yet exist.

Interesting Facts #3

Some tribes in India believed that if gold was consumed with food, it would give a person the ability to fly.

Interesting Facts #4

Only about 10% of the world's gold production meets the needs of industry and electronics, while the rest goes to the production of jewelry, gold bars and coins.

Interesting Facts #5

From the discovery of gold to the present day, people have mined about 200,000 tons of the metal. The market value of all this wealth is now about $10 trillion.

Interesting Facts #6

A cube with sides of 22 meters (or a 6-story building) corresponds to all the gold mined in the history of mankind. And, almost half of this gold was mined from one location – Witwatersrand, South Africa. 75% of the weight of this gold was mined by mankind only in the last 100 years.

Interesting Facts #7

In just one hour more steel is now smelted in the world than the amount of gold mined in all of human history.

Interesting Facts #8

Absolutely pure gold has a very soft, malleable state and can be scratched even with a fingernail, so other metals such as copper and silver are added to jewelry for strength and durability.

Interesting Facts #9

The name 'troy ounce' comes from the city of Troyes in France. It was the city where the system of weight used for precious metals and stones was first established. One such ounce equals the weight of 480 grains (carats): each grain weighs exactly 64.79892 mg.

Interesting Facts #10

In ancient Egypt, gold was considered the skin, i.e., the flesh of the gods. In particular, the Sun God Ra. For this reason, the precious metal was available only to the pharaohs, their family members and priests. The chambers in which the sarcophagus of the king was located were called Houses of Gold.

Interesting Facts #11

The ancient Greeks believed that gold was a dense combination of water and sunlight. The Incas called gold the Tears of the Sun. Gold was thought to be a gift to humans from the Sun God.

Interesting Facts #12

The first officially recorded gold nugget was mined in the United States, in Cabarrus, North Carolina. Its weight was 17 pounds (7.7 kg). North Carolina was the birthplace of the gold rush. After a second nugget was discovered here in 1803.

Interesting Facts #13

The weight of one of the largest gold nuggets was 72 kg, its dimensions were 31×63.5 cm. The 'treasure' was discovered by John Deason and Richard Oates in Australia, on February 5, 1869. The nugget was named 'Welcome Stranger'. It's noteworthy that the 'stone' of gold was located five centimeters below the surface of the earth.

Interesting Facts #14

The ransom paid to the Spanish conquistadors by his subjects for the Inca ruler Atahualpa consisted of 700 gold and 300 silver plates taken from the walls, floor and ceiling of the local temple. It was the largest military ransom ever paid in all of human internecine strife.

Interesting Facts #15

The body of the average adult contains about 0.2 mg of gold.

Interesting Facts #16

Gold is a very effective remedy that is used in modern medicine. The healing properties of gold are very extensive. It's able to destroy bacteria, disinfect, strengthen the body and increase immunity, and positively influence the work of the heart and internal organs.

Interesting Facts #17

In the 14th century, crushed emeralds were added to molten gold, and this mixture was used as medicine against the bubonic plague.

Interesting Facts #18

The largest gold reserve in the world is at the Federal Reserve Bank of New York. It contains 25% of the world's gold reserves (540,000 gold bars). The majority belongs to foreign governments.

Interesting Facts #19

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Interesting Facts #20

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Interesting Facts #21

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There are 2 main types of gold

Jewelry Gold

Jewelery gold

For jewelry gold, what are important are strength and durability.

Pure gold isn't used in jewelry because of its softness. That is why varieties such as yellow, white, red, pink, gray and even green gold appeared.

Investment Gold

Investment gold

For investment gold, it's important the purity of the metal.

The basic standard of purity for gold stored in banks (in bars weighing 400 ounces or 12,5 kg) – not less than 995, and for bars of lesser weight – 999,9.

Such a high assay indicates that the gold doesn't contain impurities of other elements.

7 types
of jewelry gold

In jewelry, used pure gold isn't used because of its softness, but it's added a master alloy – an admixture of other metals – to make it stronger. This changes not only the purity of the gold (fine), but also the color of the metal. The result is yellow, white, red, pink, gray, and even green gold.

Rings
  • Yellow

    Alloy of gold, silver and copper

  • Red

    Alloy of gold with copper

  • White

    Alloy of gold with platinum and palladium

  • Pink

    Alloy of gold with the addition of copper and silver

  • Green

    Alloy 75% gold and 25% silver with a small amount of copper

  • Grey

    Alloy of gold and steel

  • Black

    Complex laser processing with the addition of cobalt and chromium

The value of the jewelry depends on the percentage of pure gold and other metals in the alloy: the higher the percentage of pure gold in the
alloy, the higher the carat and higher the price.

  • 24 Carats

    999.9 fine

    100% gold alloy

  • 18 Carats

    750 fine

    75% gold in alloy

  • 14 Carats

    585 fine

    50% gold in alloy

  • 12 Carats

    500 fine

    50% gold in alloy

  • 9 Carats

    375 fine

    37.5% gold in alloy

  • 8 Carats

    333 fine

    33.3% gold in alloy

What types of gold are worth investing in

Gold jewelry is the most difficult asset to invest in, as its buy price is significantly higher than the sell price. Acquisition of jewelry is more an investment in an art object than in gold.

To preserve capital, you should buy investment gold of high purity in the form of

  • Weight ingots, the purity of which is from 995 to 999,9
  • In the form of gold coins weighing from 1/10 ounce (3.1 grams) to 1 ounce (31.1 grams) with a purity of at least 900 samples (21 carats), produced after 1.800

The mass of gold investment bars is 1, 5, 20, 50, 100, 250, 500, 1.000, 12.000 grams.

According to the manufacturing technology, gold bars are divided into:

  • Stamped ingots made by cutting from solid flat sheets
  • Cast ingots made by pouring into molds
  • Measured ingots with a weight of no more than 1.000 g. (manufactured for subsequent sale to individuals and legal entities)
  • Standard bars with a weight of about 400 ounces (12.5 kg), which are used for the production of measured bars; if purchased for investment purposes, they are kept in banks ("bank gold")
Background

Gold has risen more than 50 times in 50 years

In 1970 the value of an ounce of gold was $35,5
In 2020 the value of gold reached a record $2,068

In the historical perspective, gold will inevitably rise

According to statistics, global demand for gold bullion and investment coins since 2000

has increased by 140%

10 Reasons
to invest in Gold

  • Diversification

    The gold market and the stock market are linked by a pattern: when stocks fall in value, gold goes up. That's why a smart investor is sure to add gold coins and bars to stocks and bonds.

  • Limited reserves

    Gold is difficult to find and mine. Known deposits are almost exhausted, and in 15 years the resource will be fully mined. As the world's population grows, so does the demand for the precious metal, which tends to increase its value.

  • Retains its value

    Unlike paper money and other assets, gold always retains its value. People use it to accumulate, preserve, and pass on capital as an inheritance. Gold doesn't corrode and is easily melted down.

  • Protects capital from inflation

    When monetary currencies lose purchasing power, the price of gold goes up. This is because people start investing money in gold to preserve their savings.

  • Protection against deflation

    During deflation, prices fall and the economy weakens. During such periods, people prefer to spend less and save more. To make sure that the money they have saved doesn't go to waste, they convert it into bullion, mostly gold.

  • Guarantee of the future

    Gold retains value in times of economic instability and uncertainty. When another crisis breaks out, investors sell everything they have and stash assets in gold.

  • Limited offer

    The rate of gold mining in the world is declining. The annual growth rate of gold mined is just over 1%. Most of the gold is stored in the reserves of the world's central banks, which are trying to hold bullion. Demand is increasing and supply is decreasing. This leads to an increase in the price of the resource.

  • Increased demand

    Gold has always been in the investment portfolio of smart investors. People have always bought, buy and will continue to buy gold in order to preserve their income, protect their finances from inflation, and pass on capital as an inheritance. Gold has always been considered the main symbol of wealth.

  • High liquidity

    Gold is recognized as the most liquid asset of 2020. If necessary, it can be easily and quickly sold in any country in the world within a few hours. This is a significant advantage compared to real estate or antiques that take months to sell.

  • No risks

    The bank may not return the deposit, and the broker may steal money from your brokerage account. But if you bought gold bullion, you have no counterparty risk. That means you won't suffer a loss because the bank went bankrupt and didn't return your money, as can be the case with any other asset.

Background

Gold will survive any economic and political crisis

That's why physical gold is the best way to securely store your wealth and leave it to your heirs

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