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Paper money is constantly losing value. Gold keeps it. For six thousand years.

The oldest currency in the world is synonymous with security and stability. Whoever has gold, always has money.

Physical gold is liquid, divisible, indestructible and easily transportable. It operates on the global market and there is no risk of default. Rather than a raw material, gold is perceived as the highest quality cash and its price is rising. Moreover, it is rare because its annual production decreases with respect to reserves. The price of gold also increases due to the hunger of emerging markets.

While Europe and the United States demanded 70% of world gold in 1980, it is barely 20% today.

The value of paper money is constantly decreasing

The more central banks put money into circulation, the more their value decreases.  However, gold remains untouched by government monetary policy. If paper money loses its value, the owners of physical gold do not lose their property.

Gold maintains its value

Gold as a means of payment has been in existence for more than 6,000 years; the first gold coins began to be minted around 700 BC. You could buy a Ford Lizzy for 42.5 oz of gold in 1909 ($ 800 at that time). A Ford Galaxy cost also 42.5 oz of gold in 2017, but at around $ 54,400. The amount of gold to buy did not change, but the amount of money did.

Gold as security in unstable times

As we know from history, the demand for gold and its price increases whenever the economy is in crisis and the currencies lose their purchasing power. Paper money has never survived. In case of German monetary history, the euro is the fifth currency since the founding of the empire in 1871.

Gold reserves are steadily diminishing

Gold reserves and mining are limited. Its total, not yet mined amount is estimated at around 45,000 tonnes. It will be exhausted in about 15 years with the current annual production volume.

Increasing demand for gold

Approximately three thousand tonnes of gold are extracted annually, with the current demand being approximately four thousand tonnes. The world’s largest gold producer (and consumer at the same time) has been China since 2013.  

Gold as part of portfolio

Private investment institutions recommend securing at least 25% of assets with physical gold. Thus, property managers often buy investment gold to secure a portion of the portfolio of their rich clients. Similarly, some national central banks, which store gold as their currency reserves, do so as well.

Investment gold
Main reasons to invest in gold:
  • it is exempt from VAT
  • its repurchase is not subject to income tax
  • a universal currency and not a debt
  • it is not subject to inflation
  • it maintains stable purchasing power over the long term
  • it is transferable, it can be exchanged in all countries worldwide
  • it represents certain money in times of crisis, devaluation of currency and currency fluctuations
  • its global reserves are limited, demand outweighs production
  • it cannot be artificially manufactured
DIRECTOR OF MARC FABER LTD
Marc Faber

„It’s probably best to preserve purchasing power with gold. Its price fluctuates, but the individual in the given situation will still be relatively good, because the value of other tangible assets slumps even more. For this reason, we should not see gold as a raw material, but as a currency that cannot be greatly increased in quantity – as opposed to paper money.“

Stock exchange prices per troy ounce
Updated on 15.9.2019 - 22:03
Precious metal
Price in CZK
Price in EUR
Price in USD
Price in RUB
Gold
34 729,74
1 343,77
1 491,44
95 703,2
Silver
408,66
15,81
17,55
1 126,13
Platinum
22 182,84
858,3
952,63
61 128,28
Palladium
37 671,16
1 457,58
1 617,76
103 808,74
Gold
Price in CZK
34 729,74
Price in EUR
1 343,77
Price in USD
1 491,44
Price in RUB
95 703,2
Silver
Price in CZK
408,66
Price in EUR
15,81
Price in USD
17,55
Price in RUB
1 126,13
Platinum
Price in CZK
22 182,84
Price in EUR
858,3
Price in USD
952,63
Price in RUB
61 128,28
Palladium
Price in CZK
37 671,16
Price in EUR
1 457,58
Price in USD
1 617,76
Price in RUB
103 808,74
Calculate the appreciation of precious metals when investing regularly!