Investment gold, cherished for its historical value and ceaseless allure, stands as a reliable haven for investors seeking stability and profitability. In recent days, as the price of this noble metal quickly soared to new record highs, known as “all time highs,” interest in investment gold has significantly increased. Such a price leap is particularly resonant during times of economic turmoil, inflation, and financial uncertainty, positioning gold as an increasingly attractive investment choice. This article aims to delve into the long-term value of investment gold over the decades, highlighting the reasons that make it one of the wisest and safest investment options.
Looking back over the last ten years, we witness a remarkable increase in the value of investment gold. During this period, investors experienced significant returns on their investments, as the value of gold more than doubled, translating into an increase of over 100% in invested capital. Currently, the value of a one-kilogram gold bar is approximately €64,000, compared to just €31,000 in 2014. This doubling in value in a relatively short timeframe reflects the exceptional growth trend of this precious metal. Looking even further back, twenty years ago, in 2004, the price of a one-kilogram gold bar was only about €12,000. This comparison starkly highlights the long-term stability and growth in the value of gold, offering a return that is hard to secure with any other safe investment.
There are other investment options that have recorded exceptional profits in recent years, but they come with risks not encountered with investment gold:
2024 = 64.000 eur
2014 = 31.000 eur
2004 = 12.000 eur
SECURITIES:
Securities, such as stocks and bonds, offer the chance to achieve high returns, usually directly related to a higher level of risk and volatility. Over the past twenty years, securities markets have experienced extensive fluctuations, reflecting economic cyclical movements and financial crises. Particularly, some stocks, especially from the technology sector, have recorded extraordinary returns. However, it is of utmost importance for investors to be prepared for the possibility of losing part or all of their investment in the event of unpredictable market downturns or financial difficulties of companies. Therefore, it is crucial that investors understand the risks associated with investing in securities and develop appropriate strategies for managing them.
REAL ESTATE:
Real estate truly offers unique opportunities for income through rent and capital growth, especially in locations such as Ljubljana and the coast, where prices have noticeably risen in recent years. This growth has brought attractive returns to many owners. Nonetheless, it is important to emphasize that the profitability of real estate varies greatly depending on location, market conditions, and the ability of owners to effectively manage properties and tenants. When comparing real estate with investment in gold, additional aspects of property ownership must be considered. Maintenance costs, management, taxes, and potential legal complications can significantly reduce the net returns from real estate. Furthermore, investing in real estate requires considerably more effort and time for management and maintenance. Real estate is also less liquid compared to gold. Selling a property can take months or even years, while gold can be sold the same day. This liquidity of investment gold is especially important in times of financial uncertainty when investors lean towards quickly accessible liquidity sources.
CRYPTOCURRENCIES:
Cryptocurrencies, such as Bitcoin and Ethereum, have proven to be extremely volatile investments with high return potential. Since their inception, Bitcoin and Ethereum have experienced exponential growth, creating many so-called “crypto millionaires” and bringing significant financial successes to many. However, the same volatility has also led to significant losses for many others who found themselves on the wrong side of market fluctuations. Besides the high risk brought by volatility, regulatory uncertainty and security issues are additional concerns for investors. Just as cryptocurrencies have changed the lives of some for the better, others have experienced their unpredictable nature, costing them a part or even all of their investment.
When choosing between gold, securities, real estate, and cryptocurrencies, it is crucial to consider the risk profile, liquidity, and potential for long-term growth offered by each of these investment options. Gold as an investment stands out thanks to its unique combination of long-term stability and protection against inflation, making it particularly popular among investors seeking reliability and safety. Additionally, investment gold enjoys the advantage of being exempt from Value Added Tax (VAT) and, in the case of individuals, also not subject to capital gains tax, further increasing its attractiveness as an investment instrument.
Reasons why gold is considered a safe investment include:
1) Long-term growth in the value of gold over extended periods: This is key for investors looking for investments with the potential for long-term wealth growth.
2) Resistance during periods of inflation: Gold has proven to be a reliable means of preserving purchasing power, especially during times of inflation.
3) Liquidity on international markets: Investment gold is an extremely liquid investment, enabling easy buying and selling on global markets.
As industry experts at Edisongold, we specialize in the sale of investment gold and act as authorized dealers of Argor Heraeus SA products. Our range includes the prestigious Argor Heraeus gold bars and investment gold coins from the largest national mints in the world. Thanks to our extensive selection, we offer our clients the opportunity to effectively protect their savings against inflation, all while providing a high-quality service. We are always ready to offer advice to those thinking about the purchase of investment gold. It is never too late to step into the world of investment gold, a unique investment opportunity that combines security, tangibility, financial system independence, liquidity, and ease of management.
