Mining for Dreams, Striking Gold.
As a leading merchant company, we specialize in sourcing pure gold directly from miners across Africa and the Middle East. Committed to ethical practices, we ensure that all our products are conflict-free, providing you with the assurance of responsible sourcing.
Investing in Gold
The smart investor has always considered gold to be an integral part of a well-balanced portfolio. This is because of it’s role as a diversifier, due to its low correlation to most other asset classes. Gold is the ultimate wealth preservation tool; considered not only a hedge against inflation but it also acts as a currency hedge, in particular against the dollar.
As a strategic asset, gold has historically improved the risk-adjusted returns of portfolios, providing returns while reducing losses and providing liquidity to meet liabilities in times of market stress.
Gold is not only useful in periods of higher uncertainty. Its price has increased by 10% per year on average since 1971, which is when gold began to trade freely following the collapse of Bretton Woods.
Why Invest In Gold?
Gold is a highly liquid yet scarce commodity. According to the World Gold Council, investment demand for gold has grown 18% per annum, on average globally. This rapid growth has been driven by the expansion of the middle class in Asia, exchange traded funds (ETFs) and more focus on risk management following the 2008-2009 financial crisis in the US and Europe.
As mentioned above, owning gold bullion could prove extremely lucrative in periods of economic uncertainty. In recent years traditional banking formats have been shunned by investors due to scepticism of the system and the way their money is handled. People are increasingly concerned about holding large deposits with their banks and so turn to a liquid asset with no credit risk that has outperformed fiat currencies.
Effective risk management to achieve a balanced portfolio requires diversification. Investors are attracted to gold due to its low correlation to other mainstream assets and as a hedge against systemic risk and stock market corrections.
In physical form it is also the most liquid asset devoid of financial-market counterparty risk. No other non-financial asset, including real estate, fine art, or commodities, measures up as a potentially effective or accessible hedge against a market meltdown.
Rapidly expanding sovereign debt in the US and the rest of the world is a time bomb. Rising interest rates and market stability have rarely, if ever, coexisted, even if those increases are generally anticipated. Exposure to gold represents a compelling investment proposition, if only as a hedge against increasing macro and market risks.