The Gold Rationale

We believe the best asset protection plan includes precious metals as well as diversifying your assets internationally to protect and grow your wealth.

We also believe that:

 

  • Precious metals should form part of a well-balanced and diversified portfolio.
  • Gold is a highly liquid investment - both an asset and a currency. Though while paper money has no intrinsic value, gold has.
  • The money supply growth has led to the purchasing power of many currencies to decline, the dollar among them. A fall in the dollar relative to other currencies results in a rise in the gold price.
  • Gold is an effective way in protecting against dollar weakness.
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  • In times of crisis, gold is the safest investment with a great potential to protect and increase your wealth.
  • According to the World Gold Council's annual report, 'Gold Demand Trends' global demand for gold exceeded $200 billion - the highest both in terms of value and tonnage in more than a decade.
  • With the ongoing sovereign debt crisis, the world's Central Banks - Europe and the United States, China, India, Russia, Mexico, Thailand, South Korea, Venezuela, Turkey - stockpile the precious metal in record quantities - a 450% increase.
  • Supply and demand factors have laid foundations for gold's most positive outlook. Demand may be growing, but supply is lagging due to the long lead times in gold mining. Gold mine production was only 4% higher, but far from meeting rising demand.
  • Demand for gold has shown sustained growth recently, due at least in part to rising income levels. Recently, China – reportedly having the highest saving rates in the world - is allowing individual investors for the first time to purchase physical gold. India is the largest gold consumer country and gold has a cultural role in Indian society. China and India account for 50% of global demand. China is expected to surpass India as the world's largest gold consumer, with demand rising 20%.
  • Gold is easy to transport, convenient to store, and easy to sell. Gold can be more liquid than stocks and bonds.
  • The gold ownership trend is helped along by the abolition of the VAT in all transactions of investment gold. You can now also benefit from this legal exemption by investing in INVESTMENT GOLD WITHOUT VAT.

 

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