Company News

Gold For Your Pension?



Gold has been used to store wealth for more than 5,000 years. Why? Because gold is very rare – and gold today is becoming ever-more difficult to find and mine.

Gold is six times more rare than platinum, and 18 times rarer than silver. Gold is also very nearly impossible to destroy. Unaffected by oxygen or hydrogen sulfide, gold cannot rust, tarnish or decay. Nor will gold melt below 1063 degrees Celsius. Gold is only dissolved by cyanide.

After 50 centuries of gold mining, new gold deposits are becoming ever harder to find.  South Africa, the world’s largest gold producing nation, has seen its gold output more than halve in the last decade.

The majority of private investors see gold as insurance against bad central-bank policy, high government spending, and financial instability.  Gold tends to appeal strongest when real returns on cash and bonds are negative and falling.

You should consider allocating some of your pension fund to gold. Zurich Life’s  Gold fund aims to track the performance of gold. The fund currently achieves this by investing in Invesco Physical Gold ETC, an Exchange Traded Certificate (ETC) which is managed by Invesco Physical Markets PLC (Invesco PMP). Each gold P-ETC is a certificate which is secured in gold bullion at JP Morgan’s vault in London.

This ETC tracks the gold spot price and is backed by physical gold. It has been designed to provide investors with a return equivalent to movement in the gold spot price, less fees.

Finally, central banks went from being net sellers to net buyers of gold in 2010, and that net buying position has persisted ever since. The largest buyers are Russia and China, but significant purchases have also been made by Iran, Turkey, Kazakhstan, Mexico and Vietnam.

Central banks are voting with their printing presses in favour of gold. What are you waiting for?

A currency risk arises for a euro investor.      086 22 22 204

Leave a Reply