Precious Metals

Precious metals is an important part of our capital strategic reserves management. Since 2007 we have been increasing our holdings of physical precious metals. In terms of total holdings gold and silver account for 60% of total holdings,  platinum and palladium accounting for 40%. Since 2000 the US Federal Reserve has been printing large amounts of US dollars, this is also been the case of other major central banks following the 2008 global financial crisis. The urge to print money during an economic and financial  crisis, has lead to the debasement and loss of purchasing power of fiat money. The appeal of gold as a financial asset is deeply rooted in its ability to serve as a hedge against inflation, deflation, and geopolitical uncertainty. The  rationale for holding precious metals especially gold and silver, unlike paper currency they have maintained  value throughout the ages. 

 

Precious metals especially gold often thrives during periods of uncertainty like we are seeing today. When investors are faced with systemic risks, political instability, or stock market volatility, they frequently turn to gold.  History has shown us that gold's price tends to rise when confidence in governments wanes, as evidenced during various international conflicts. The appeal of gold as a financial asset is its ability to serve as a hedge against inflation, deflation and geopolitical uncertainty. Gold has low correlation with other asset classes like equities and bonds makes it an essential component for portfolio diversification. It provides a buffer against market fluctuations and gold's historical performance during recessions has shown its capacity to mitigate risks, often offsetting losses from other assets and providing valuable liquidity. This strategic role has contributed positively to the overall performance of our diversified business holdings.

​