Gold as both a jewel and an investment
Dear readers, in the previous blog posts we've already discussed the history of different kinds of gold. We've also mentioned the topic of investment before – whether this regarded expensive metals, gemstones or art objects. Both topics are still relevant, perhaps now more than ever. Let's bring these together in a new post, the theme being the following: gold as an investment commodity.
Gold is a certitude of all times. Despite the indestructible value that has been proven through hundreds of years, and seems to continuously grow, gold should not be viewed as a commodity by experienced investors or traders only.
At this point, you are probably thinking – why not invest in this shiny metal then? Just the year 2020 itself has been and further on will be even more significant in many different ways, including the economy. For the past number of years, the majority of countries has been printing out notes in large amounts, not shielding them by anything but trust itself. In many ways, the current situation in the world is also being affected by Covid-19.
Until 1971, money was being shielded by gold, until Richard Nixon put an end to the ‘gold standard’. This led to money no longer being coated in gold, instead, the metaphorical shield consisted of the faith or trust of the citizens within the country.
At the beginning of every crisis, the value of gold grows while the price of stocks (to put it simply) diminishes. If a country’s economy is prospering, the price of stocks is conversely going up, while the value of gold depreciates. Several banks, including ČNB has recently started buying gold.
One of the reasons behind this is that even banks do not have that much faith in the value of money. A few years ago, during the period when the value of gold started shooting up, ČNB in secret sold 14 tonnes of gold from its gold assets (fun fact: now it only has 9 tonnes in its gold assets). The bank is probably currently regretting this decision, considering the current situation.
Which form to buy?
Our goal is not to scare or worry you. However, we very well know that good advice is worth more than gold, and investment during unpredictable times is not often only the best form of money storage, but also money evaluation. If you, therefore, decide to invest in gold, let us discuss the possible forms of gold that you may choose.
Gold can be obtained in many different forms. Ingots, bricks, coins, medals, stocks of mining and processing companies, or jewels, whichever option you go for, you will not regret.
Going for the jewel option, you will not only obtain the value of gold itself but also your investment will have an artistic value, especially if we’re talking about antique jewels. This is because antique jewels will never lose its value, instead the value will increase with time. Another benefit of choosing this option is that a gold brick is not something you will show off at social events, however, a nice gold jewel can serve as a perfect accessory for any lady or a gentleman. Beauty, monetary worth, and historical value in one – that is just an irresistible combination!
The perfect accessory for every lady is a jewel chosen for her by her man
There is not a better gift for a woman than an appropriately chosen gold jewel. Whether the colour of it is white, yellow, or pink, whether it’s ostentatious or more subtle, that all depends on the specific style of the lady. Moreover, not only does an antique jewel have a historical value, but crafting value as well. Amazing workmanship, ancient treatment techniques, or unique cutting of gemstones, these are the things that you would barely come across with modern jewels. Every antique jewel also carries with it its own story. Don’t you think that this is a better ice breaker than starting the conversation with the obligatory topic of the current political situation?
Gold coins
If rather than accessorising, you prefer the option of storing your investment in a safe, then a suitable option for you are coins. The biggest benefit of coins inarguably is that when needed, they can be immediately sold whenever and wherever. Coins can further be categorised into the following:
· Former classic coins (currency)
· Investment coins- the trade of these is driven by the current value of gold on the market (an example would be South African ‘Krugerrand’, or Austrian ‘Philharmonic’).
· Commemorative coins – these are issued by any state which also decides on their purity and amount that shall be manufactured. The nominal value of commemorative coins remains the same, and this is also the price that they can be bought or sold for whenever unless you want to keep them and have them evaluated much further in the future.
Rare coins
Compared to other coins, these are evaluated differently, because some collectors are willing to pay large sums of money for them. An example of this is the continuously growing value of St. Venceslav ducats from 1923.
Gold Medals
If you are aiming even higher than coins, you should focus your attention on medals. Gold medals are cast during significant historic events or to commemorate a person or place. They often have an intrinsic collective value, which increases with time.
Did you know that...
… in 2019, the most expensive antiquity to be auctioned was a gold medal? This was a medal of a Russian tsar Alexander I., which was sold for 1.4 million CZK.
The main difference between a gold medal and coin is that in contrast to coins, medals are not heavily taxed. Moreover, you’re likely to buy or sell medals for collective purposes. Thus, medals are more associated with a passion for art.
And if any gold pieces are lying around your house…
Do you have bracelets, chains, remaining pieces of gold or the previously mentioned gold coins at home that you don’t know what to do with? You can bring them to our store and we will buy them from you for the price of gold. Or you can also bring in the unused bits of gold that you have and our handy goldsmith will process these and turn them into a different form that will bring you joy.