Why Gold?

Why Gold?
Low supply.
High demand.
Significant and unique role.
Each of these factors equals high value. Each of these factors is attributed to gold.

SUPPLY. The scarcity lasts.
Gold supply is limited. The data on mining output and volume of recycled gold, which determine the global gold supply, make it apparent that we are gradually running out of the yellow metal. The report of the World Gold Council in 2013 emphasized that the mining output is limited by the natural access to the metal despite the technological advancement in mining. Additionally, the production by recycling falls to its 7-year low. WGC (2013) accounted 177,200 tons of stocks on the surface. To put this into perspective, the amount of pure gold extracted above the ground can fill a box with the length, width, and height, each measured 21 meters. Notice that not one country come up with more than 14 percent of the global production. So nothing’s new. It will remain a challenge keeping this rare metal up with the demand.

DEMAND. Global appetite strengthens.
The global consumer report of 2014 concerning precious metals puts Asia into the spotlight. Asia’s regional share reached 60% from 47% five years back (WGC, 2014). Five years, as many would agree, is just a few years. Noticeably, central banks remain as the net buyers with their reserves receiving 477t increase. Additionally, the jewelry industry has its demand still above the 5-year average. In response to this rise in demand, several projects were completed for the development of infrastructure to meet the demand. Some of these projects are the formation of international board for the Shanghai Gold Exchange, development of gold retail network in China, granting licenses for gold importation, vaulting capacity growth, and launches for gold related and backed product in Singapore and HK. To have gold is like a race of ownership as the demand continuously grows. And in this race of satisfying the global appetite for gold, numbers reveal the challenge.

ROLE. When all else fails, Gold won’t.
In an asset portfolio, gold has the role of a dependable, physical store of value.
Notice that the central banks have been gold net buyers over time and across the globe. These institutions acknowledge the metal’s lack of correlation with other assets. Because of that parallel, they managed to maintain an asset class that can alleviate their portfolio risks.

Needless to say that financial security is important for institutions and for private individuals alike. Individuals can take advantage of gold the same way as central banks do by means of risk alleviation. To cite a situation, if you save your local money while holding on to your shares of local stock, a major event such as a market crash could, with high probability, negatively affect both the savings and the financial asset. Gold can endure this circumstance. In fact, during an economic downturn, that’s when this yellow metal notably shines. When all else fails, when there’s a slump, financial crisis, or even recession, gold will turn out well. When you own one, the deficit could be mitigated because people favor a safe haven asset during every economic decline. Gold price appreciation safeguards the global purchasing power and eases the beating when market indices are in distress.

GiC is Gold, Revolutionized.
The world enjoys this period in history when gold has been more accessible than ever. Several financial instruments intended for the public are designed to include this precious metal. Depending on strategies and tolerance, the market presents a wide array of products, backed or related with it and this grows to be the trend. GiC aspires not to let anyone be left behind.

GiC takes up both new-fangled and traditional means of gold ownership. Primarily, the company offers a more active way of growing the capital with a secured approach by putting gold in the mix of another instrument. The program allows one to own gold bars and wafers while having a regular monthly return to the capital. The denomination ranges from one gram up. For the more traditional gold aficionado, GiC also continues the long-established method of ownership with which one pays for the amount, take the gold back home, and take possession of your very own gold bars, renowned for their nature as a high value physical yet compact asset, that can be easily traded almost anywhere on the planet, at any time.