GOLD IS KNOWN FOR BEING AN EFFECTIVE PORTFOLIO DIVERSIFIER - BUT GOLD MINING INVESTMENTS CAN ADD SIGNIFICANT VALUE ADD
Gold is — and always has been — one of the world’s favourite safe haven investments. That is, during times of uncertainty, insecurity, economic or political upset, war, devaluations and more, gold has typically emerged as one of the top tier investments. And this impressive track record goes back more than 5,000 years.
In other words, there’s not one single item or investment that can come anywhere close to beating gold’s mega, long-term track record. Throughout history, gold has always maintained its purchasing power.
With a gold price of $US1,818 per ounce (as of 28.08.2021) and an all-inclusive gold mining cost of less than $US 919 (Africa) it becomes apparent that an investment in a proven gold mining operation can achieve significantly higher returns than pursuing a direct investment in Gold as a physical asset. Given the opportunity to invest into a gold mine with proven resources and a strong local partnership with the gold mine owner, exceptional value add can be achieved.
Further the investment into a Gold Mine operation provides an effective downwards protection whereby the investment is still profitable even if the Gold price drops from $US1,818 to less than $US1,000.
Africa has the largest known gold reserves (28% of global reserves) and being an underdevelopment market, provides substantial opportunities for investment.
About the author:
Markus Giebel is one of the Managing Partners of CES Investments, a fund management and financial service company located in the DIFC and regulated by the DFSA. He was before the CEO of Deyaar Development, a public traded real estate developer. Mr. Giebel serves on several Boards and is a thought leader within the industry.