Investment Gold

Currency of Cast Bar Sale and Purchase

EUR, CZK, USD

Minimum Client Investment

1 cast bar (~ € 3,500 per 100 g cast bar)

Producer of Gold Cast Bars

Argor-Heraeus, Switzerland
W. C. Heraeus, Germany

Cast Bar Marking

numbers

Cast bar Purity

999,9/1000

Size Parameters of Cast Bars

Cast Bar of 1,000 g
(116.5 x 51.0 x 9.5 mm)

Cast Bar 100 g
(49.7 x 28.5 x 3.9 mm)

At times of fear of inflation and uncertainty resulting from the crash of not only countries but even entire currency systems, J&T Banka, a.s., branch of foreign bank, brings the opportunity for its private banking clients to invest in an asset tried and tested by centuries of human history – gold. We recommend that our clients make an investment from 5 to 15%.

Why Physical Gold?

Recently the impairment of “paper assets“ (currency, stock, bonds, etc.) has drawn ever greater attention to material assets (commodities, real estate). However, a lot of these assets are part of the economic cycle that impacts demand for these assets for economic reasons (e.g. industrial metals, crude oil, real estate) and finally the price of these assets. Along with dropping economic performance, the price of these assets may also go down due to the greater offer of such assets (e.g. larger sown areas of agricultural commodities, development of new real-estate projects, or increased mineral exploitation). Gold is favoured since it is used in a limited scope (~10% of demand) in industry. Any such material assets also generate storage costs (commodities), possession (real estate), have limited life (agricultural commodities), or cannot be stored (electric energy). Gold is the “value keeper” also because its available quantity is rather limited – the volume of mined gold was around 165,000 tons up to 2009, annual gold mining reached only 2,650 tons in 2010, i.e. approximately 1.6%. To compare this “growth” with increased money supply or bond issue indicates real quality, thus the preciousness and rarity of gold. In particular, the fact that gold quantity cannot be easily increased (produced, printed, manufactured) and with respect to its perdurability and simple storage it directly leads to its extraordinary position.

While global reserves of gold amounted to 2,555m ounces in 1972, it was 4,681m ounces in 2010. The price of gold has increased for the same period from $59 per ounce to $1,224.5 per ounce, it means more than 20 times related to the not even double increase of physical gold volume. It is also significant that the value of gold reserves at current market price grows faster than volume of global money supply, which proves the ability of gold to resist currency depreciation (see first graph).
Despite the fact that the progressing depreciation of the US dollar supports the appreciation of the EURO exchange rate to this key global currency, it is important to know for investors buying gold that the price of gold grows even when expressed in EURO (see the second graph).