Gold as an Investment
Why is it worth having a gold account?
- Available with a low monthly payment, gold account offers a smart form of saving that allows you to avoid investing big amounts of money in one go, but instead accumulate a part of your investments in grams of gold by making regular payments (e.g. HUF 10,000 a month)..
- Despite its relative “expensiveness”, gold provides a good opportunity for everyone to secure a part of their investments using this method.
- If you buy gold on a regular basis, you can be sure of investing at good rate. By making regular small-value purchases of gold, any investor has a good chance to offset the daily fluctuations in exchange rates and avoid buying on a day of high exchange rates. Moreover, the mining extraction costs of gold is currently USD 800 per ounce, and it keeps growing due to the increasingly difficult accessibility to stocks. Among other things, it means that the exchange rates cannot drop below the extraction costs in the long run, as it would cause the mines to stop immediately, and therefore it offers a “protective shield” that you cannot have in the case of share investments for example.
- There is no maturity defined. Our customers can freely choose the date when they want to redeem their gold bars. They can receive their gold bars of 100, 250, 500 or 1,000 grams of weight any time upon request.
- Guarantee and safety. The trader guarantees to buy back the investment gold any time and also warrants that the gold they sell comes from a credible and renowned manufacturer/issuer (www.argor-heraeus.com) whose “trademark” (Good Delivery) is recognized all over the world and whose products are bought up anywhere around the globe.
- Stability of value. A Ford T Model made in 1906 costed USD 850, which was the equivalent of 42.5 ounces of gold. (In 1906 the value of one ounce of gold was USD 20.) The price of a Ford Focus made in 2006 was USD 24,650, which is again the equivalent of 42.5 ounces of gold. (In 2006 the value of one ounce of gold was USD 580)
- Gold is a product traded round the clock all over the world, its price is public and constantly trackable for anyone. With that said, the value of this investment does not depend on the expertise of well suited and booted portfolio managers and financial experts.
- The invested money immediately goes into the purchase of physical gold. We do not buy shares traded on the stock exchange (“paper gold”, so called ETF).
- The quantity we buy for you is recorded separately, in your ownership, in your own account. There is no “joint ownership.
- This is because the quantity of gold you own is stored either with Argor-Heraeus in Switzerland or, if you wish so, in Hungary, in the vault of a specialist CIT service provider that meets all security requirements. Your investment is not stored abroad, in a “Swiss free zone”, but here in Hungary.
- Gold is known to be the most secure payment instrument and, as such, it is globally the most secure way to preserve your wealth. The simple reason behind it is the ability of the precious metal to hold its value well. As neither the governments nor the central banks are able to produce gold, they cannot use or utilize it as an inflation tool nor can they devaluate it.