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How can you insure yourself against instability tomorrow - Jüri Martin, Tavex Group

Published by tavex in category Precious metals on 11.12.2017
Gold price (XAU-SEK)
21377,74 SEK/oz
+ 84,41 SEK
Silver price (XAG-SEK)
256,89 SEK/oz
+ 0,98 SEK

We are bound to invest in something in our lifetime: education, children, acquiring different skills, but also tangible values, such as shares, real estate, precious stones or gold. Therefore, all people can be considered as investors – investors, whose main goal is to invest their resources in such a way that their profitability is maximized over the next 20 years.

It is no secret that the currencies that circulate in the world´s financial system are not really guaranteed by anything else than trust. Since both the dollar and the euro, as well as most other currencies, are not guaranteed by real values, countries have been able to create money from nothing. This creates an apparent wealth, with no real assets to back it up. A similar tendency also appears in real estate prices, most of which today comes from mere emotional value.
On the other hand, there are investments that can be trusted more and which value does not decline with the poor performance of a company or a sector, as is the case with the shares. One of a such investment opportunities is gold. There are several reasons why gold can be trusted more than other assets: first, gold is not a virtual, but real, and secondly, gold cannot be produced out of nothing. In addition, gold has been able to maintain its value in the world during all financial crises, making it the lowest risk investment instrument.
Other raw materials that exist physically, such as steel, salt, pure water and food, do not have any disadvantages compared to gold at first glance, except storage and preservation. Also, it is important to remember that raw material must be physically present, not just an impulse on a computer screen or few lines on a stamped paper sheet.

It is necessary to emphasize that gold is not a magic solution that will free you from worries. Gold can be compared to a life raft. When we build a new cruise ship, we will probably not be advertising it by saying, ´´Come on board, because our boat is equipped with life rafts, which is an addition to the usual pyrotechnic equipment, have dry food packages and fresh water bottles on your board! In our life rafts, you can easily spend a whole week in the Atlantic Ocean!´´ All we hear about are the grand restaurants, bars, and discotheques that are located near the full-sized gyms, swimming pools and concert halls. Unfortunately, this list does not provide protection against the storms and does not prevent collision with icebergs.
Just over a hundred years ago, all on board the Titanic learned this first hand. As sad as it is, today´s economy is in the same state as Titanic was on 14th April 1912, just before the accident. So, investing in gold is just as pleasurable as getting on that life raft. With a little irony, it might be an option to take the last bottle of Petrus and enjoy your last hours instead. IN our context, however, this means that instead of purchasing gold, you´d be buying a big TV or taking out an SMS loan to finance your birthday celebration.

Take interest in the processes happening in the world and do not be satisfied with superficial answers. Take your time, concentrate, and try to get to the core of each problem. Do not let others influence you: listen to experts, but question their words, particularly the words of those experts and specialists whose wages or well-being depend on your decision. At the same time, trust your own instincts the most.

´´Gold – the only option to protect yourself from crises and to preserve your purchasing power.´´


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