The price of gold currently knows only one direction, and that is up: Since the beginning of the year, the precious metal has gained around 15 percent in value. In the past few days, the price has risen sharply again – triggered by the war in Ukraine and the nervousness on the financial markets. The price for a troy ounce is currently around 2000 US dollars.
Gold once again seems to live up to its reputation as a crisis currency and safe haven, says Rudolf Brenner, founder and boss of the Viennese precious metal dealer Philoro. And this despite the fact that gold does not yield any interest and therefore differs among experts as a form of investment. “That’s true, but zero interest is still better than negative interest in times like these. And gold is a real asset that many appreciate,” says Brenner in an interview with OÖN. In view of the current situation, gold fans also hoped for protection against inflation.
Philoro has received more inquiries about gold and silver products in the past few days, says Brenner. Founded in 2011, the family business sells coins, bars and gifts, some of which it produces itself, online and in 15 branches in German-speaking countries.
Demand is also reflected in sales. In the previous year, sales rose by 74 percent to two billion euros. The development is above expectations, says Brenner. There are more people who noticed that no returns can be achieved with savings accounts or life insurance and therefore turn to precious metals.
Hysteria warning
Despite the currently favorable environment, the expert warns of “hysteria”. Don’t make the mistake of investing your entire fortune in gold. Advisable is an admixture of ten to 20 percent to spread the risk. Gold in the portfolio reduces volatility because the price of gold often develops counter-cyclically. For example, if share prices fall, the price of gold rises and vice versa, says Brenner.
The entrepreneur wants to use the momentum to drive Philoro’s expansion course forward. As reported, the family business is building a gold production facility in Korneuburg with high-security storage for gold and other precious metals. The ground-breaking ceremony will take place at the end of April, and a construction period of one and a half years is planned. In the final phase, 300 employees will process scrap gold and gold granules into bars and coins.
Source: Nachrichten
