GOLD IS A STORE OF VALUE

For over 3,000 years, gold has been used worldwide as a store of value. As the only currency that has remained intact since then, gold has withstood all crises, is unaffected by inflationary monetary policies, and cannot be reproduced at will. Gold is worth its weight in gold.

GOLD IS IN DEMAND.

For decades, gold has become an indispensable raw material in modern society: mobile phones, computer technology, aerospace, medicine – the areas of life that are most important to modern humans rely on the precious metal gold. And since even the most advanced technology – nanotechnology – cannot do without this material, the future is inevitably linked to gold.

PLAY IT SAFE – WITH GOLD:

Gold is the stable investment in its purest form. For over 4,500 years, gold has been revered and used as a valuable commodity. Its irreplaceable role in the jewelry market, its frequent use in modern technology, and its long history as a reliable hedge against inflation make gold the safest asset to rely on.

Around 170,000 tons of gold have been mined by humans worldwide over the past 5,000 years. Only a few percent of it has been lost over these many years.

What may initially seem like a large amount is actually a tiny quantity: it would easily fit under the Brandenburg Gate. However, such a gold cube would not only be heavy but also expensive: the total value of global gold reserves amounts to a staggering 6.6 trillion euros. Converted to each person on Earth, this is less than 25 grams worth 950 euros.

And this amount of gold is not freely available: most of it, about two-thirds, is tied up in the form of jewelry, and around 30,000 tons are stored in the vaults of central banks. These central banks have changed their behavior drastically in recent years: after many central banks sold parts of their reserves in the last 40 years following the end of the dollar's gold standard, a reversal has been observed in recent years. Since 2010, central banks have been net buyers of gold, and this trend seems to be accelerating.

In addition to central banks, other groups have also rediscovered gold as an investment: in times of seemingly unlimited government debt in many Western industrial countries, almost limitless money printing by central banks, and in the face of currency and financial market crises that appear to be happening more frequently, both private and institutional investors have been increasingly seeking gold. Since 2001, especially after the 2008 financial crisis, investors have been considering physical gold as insurance for their portfolios.

The growing demand from various sectors, combined with only modest increases in new production (around 2,650 tons per year), has led to significant price increases in recent years. In September 2011, the price reached a temporary all-time high of $1,920 per ounce, before it slightly retreated.

BEING AT THE FOREFRONT OF THE TIMES – WITH SILVER

Silver has two faces. On one hand, it is the most volatile of all precious metals and can generate profits for attentive traders day by day. On the other hand, like its "big brother" gold, it is a reliable hedge against inflationary times: Its versatile use as an industrial raw material for essential devices like mobile phones and computers guarantees the stability of silver's value.

The white metal has also significantly increased in value in recent years. It benefits from a dual role that gold does not have—being seen both as an investment metal and, at the same time, having a substantial portion of its annual new production, which is about 21,000 tons, required for industrial purposes. The largest consumers are the electrical, electronics, and jewelry industries. In recent years, the photovoltaic industry has also emerged as a new user, consuming up to 2,000 tons of silver in 2011.

This has brought substantial gains to the silver price in recent years, with the price temporarily reaching nearly the previous all-time high from 1980 in 2011.

HAVING THE OVERVIEW – WITH PLATINUM:

Platinum is the quintessential industrial metal. This makes it the ideal precious metal for people with a keen sense of economic foresight. No other precious metal offers as precise an investment opportunity as platinum. Furthermore, there is no need to worry about its long-term value: platinum is a key component in the automotive industry, thus linked to one of the strongest industrial sectors.

The two main platinum metals have also experienced significant price increases in recent years, though, unlike gold, their prices have seen massive fluctuations within this trend. The reason for this is that these metals are much more dependent on industrial demand—and therefore on economic development—than gold and even silver.

Each year, between 200 and 250 tons of both metals are newly mined. While platinum comes primarily from South Africa (60%) and secondly from Russia, the situation is reversed for palladium. The unique aspect of palladium is that this silvery-white metal is primarily a by-product of other metal extractions—produced as a by-product of nickel production in Russia, and in South Africa, it is mined alongside the platinum that is the main focus.

THINK LONG-TERM – WITH PALLADIUM

Palladium, as a rarely traded precious metal, is especially attractive for long-term investors because its price is almost unaffected by speculators. Furthermore, palladium is a key raw material for future technologies like nanotechnology, making it a small secret tip for long-term investors.

The two main platinum metals have also seen significant price increases in recent years, although, unlike gold, their prices have experienced massive fluctuations within this trend. The reason for this is that these metals are much more dependent on industrial demand—and thus on economic development—than gold or even silver.

Each year, between 200 and 250 tons of both metals are newly mined. While platinum comes primarily from South Africa (60%) and secondly from Russia, the situation is reversed for palladium. The unique feature of palladium is that this silvery-white metal is primarily a by-product of other metal extractions—produced as a by-product of nickel production in Russia, while in South Africa, palladium is extracted alongside the primarily mined platinum.

ACHIEVE GREAT THINGS QUICKLY – WITH RHODIUM

Rhodium will likely always be the favorite of speculators. No other precious metal offers so many opportunities to make profits through price fluctuations with such regularity. And as an essential raw material in the chemical and automotive industries, rhodium remains a secure investment metal, even in the long term, despite its speculative nature.

The so-called "small" platinum metals have so far played little role as investment metals. This is mainly due to the lack of available investment products, but also because of the strong and sometimes unpredictable price fluctuations. Additionally, unlike the four main precious metals, there is insufficient trading on international financial markets to provide adequate liquidity.

These three metals are by-products of platinum production, with almost 100% of the mining coming from South Africa. The three platinum metals are extremely rare, with production at around 25 tons for rhodium and ruthenium, while only about four tons of iridium enter the global market each year. Compared to the wide range of industrial applications for these metals, this is the proverbial drop in the ocean.