If you would like to invest money and preserve the value of your assets, a good way to do it is by purchasing gold investments.
This was the goal around which the company “Zlatni Standard” (Golden Standard) was formed - to become a pioneer in gold investments in Serbia. They were the ones who brought this type of investment to our country.
The company enlists a team of experts with decades of experience in global financial markets who will provide their clients not only with the best prices for gold investments, but also with security, supply continuity and availability of goods.
Throughout history, gold has always represented stability and wise investments. Is that still the case today?
Global macroeconomic and geopolitical circumstances are such that it’s reasonable to expect that the price of gold will continue to rise in the future. After the outcome of this year’s presidential elections in USA, there is more uncertainty along with the worsening of the COVID-19 situation, the lack of change in global monetary and fiscal policies and aggressive measures have been made regarding devaluing money decree, or in other words money which a country’s government has declared its legal payment currency. All of these factors create an environment that suits gold better than most other investments and that is the main reason why leading global financial institutions anticipate this metal’s price to grow in the coming period.
For example, in their report from November 2020, the analysts from the investment bank Goldman Sachs pointed out that they anticipate a rise of over 20% in gold price in the coming year and state that its growth is only beginning.
In Serbia, important motivators of the gold investment market are primarily the negative real interest rates on saving deposits in banks and a significantly “overheated” sector of residential and commercial real-estate.
Over the last 20 years, the price of gold investments has risen to over six times its initial value, seeing how in the year 2000 the price per ounce was around 264 USD while at this moment a price of a fine ounce can reach up to 1.940 USD.
Incidentally, a ‘fine ounce’ is a weight value often used in English-speaking areas. In terms of precious metals, a fine ounce is the commonly used unit of measurement and amounts to around 31.1 grams, as per the Golden Standard.
Has the COVID-19 pandemic influenced the price of gold?
Certainly. In international financial and trade markets, gold is considered a “safe harbor” in times of uncertainty and macroeconomic shocks. Now as well, gold has maintained its reputation so over the past year the gold prices in the stock markets has risen by about 28% in dollars.
The premium for purchasing physical gold in bars and plates is so great that it actually results in much higher prices of gold, which is a direct consequence of significantly increased demand for this metal, as well as a stop in the procurement chain and overall logistics due to the pandemic.
Can you explain in more detail what gold investment actually is? Does it include jewelry and gold you can find in central banks - the so-called monetary gold?
Not all gold is investment gold and the laws are very clear about that. When we say gold investments, that means specifically:
Monetary gold, by the way, is not considered investment gold.
The company “Zlatni Standard” offers their clients the ability to trade with gold investments which is a way to maintain the value and purchasing power of their assets.
The company “Zlatni Standard” offers its clients the opportunity to protect their assets and saving on time by investing into fine gold metals of 999,9 purity in the physical form of plates and bars of specific weight denominations between 1g to 1kg.
We enable our clients to purchase gold investments produced under highest criteria and standards by global manufacturers who possess all the necessary legal certificates and accreditations. All the products in our offer are within the regulations issued by the LBMA Good Delivery standards, meaning the ruleset which was issued by the LBMA - London Bullion Market Association which describe the appropriate physical characteristics of gold and silver bars acceptable in the London bar market.
Right now the most important certification authority for all relevant aspects of precious metal trade is the LBMA. The LBMA has developed guidelines for responsible gold trade which regulates the processing and sales of gold in a way that helps suppress and prevent systematic money laundering as well as financing terrorist groups. The important factors that LBMA considers are also the social and ecological factors as well as regards for human rights when it comes to gold exploitation.
Traders who possess the LBMA certificates are subject to regular and strict checkups and controls. The main condition for obtaining the license involves among other things the implementation of the Due Diligence system based on risk-assessment, which guarantees the transparency of the supply chain and ensures responsible handling of the raw materials. LBMA certificates fully neutralizes the threat of any goods manipulation, so it’s impossible for the weight or purity of the gold to be inferior to the listed standard.
Therefore any product you might want to purchase should come from a foundry or refinery that has the LBMA certificate. Only with properly stamped and certified bars will you never have to worry about any value deductions or discounts when you sell or use them at a later date. In addition, each bar should contain a serial number as well as its own specialized packaging with safety elements, so that the possibility of forgery is completely minimal.
We have a list of most commonly asked questions at our company’s website and it’s an important resource for anyone considering gold investments.
What does the process of purchasing gold investment involve?
There are only two legitimate ways to conduct the trade: by spot purchase/sales or by advance transactions. Both ways are very reliable and very simple to use.
On the one hand, the spot market involves issuing accounting records and, if the buyer chooses, signing a contract of purchase and sales which lists the serial numbers of all purchased plates and bars. After the payment is completed, the buyer is delivered their gold investment and all accompanying documentation.
On the other hand, advance purchase and sales involves delivering an advance account and signing a purchase and sales contract which, if the buyer chooses, can be notarized at the public notary, after which the gold is delivered in the agreed upon period. It’s important to mention that advance transactions are the ones that can achieve the best possible prices in a transaction which is conducted with the buyers’ best interest in mind. The Golden Standard for certain transactions - above all depending on the amount of purchased metals - offers the clients a guarantee from a first-class bank as an additional measure of security.
What should one pay special attention to when purchasing investment gold?
There are several important factors, such as:
- Make sure that the goods have been legally imported and that they possess all the legally required permits and that the shipping processes are in order.
- Make sure that the company you are buying for has a history of continuity in supply and available goods in stock, as well as a solid business reputation.
- Make sure that the buyer’s full discretion is ensured and the shipment itself is done within all the possible safety measures and regulations, including physical and technological protection.
- Absolutely make sure that all the products have their quality guarantees from the refineries and foundries that were themselves certified by the LBMA - the London Bullion Market Association
- If the gold is imported from a foreign country, it’s important to do a statutory documentation and relevant certificate analysis for the producers in question and confirm that those producers are listed on the LBMA Good Delivery list.
- Double check in which way has the physical investment gold been imported to Serbia and make sure that all the taxes and shipping costs have been paid in full
In addition to all of the above, the buyer should have secured a keeping spot for their gold investments ahead of purchase. Usually it is deposited in bank safes or private safes.
You are planning to introduce a new service.
Yes, that service is establishing the quality of precious metals - gold, among others - through the use of a latest generation XRF X-ray spectrometer. Our clients will be able to check the quality of their goods that way, such as gold coins and plates/bars they own.