No investment of any class can be represented as risk-free.
Gold is the world’s most valued and traded precious metal commodity. Almost everyone has some gold in some form or other, whether it be rings, chains, watches, or other jewelry; coins, bullion bars or other collectibles. Central Banks and Governments also buy and store significant amounts of gold.
Most do not realize where most gold is held or where it is annually used every year.
Based on the past 10-year average annual global production of around 4,300 tonnes (of which about 25% originates through recycling) as reported by the World Gold Council:
52% is used by the jewelry industry
27% is purchased by individual coin and bar investors
9% is used for technology applications
8% is purchased by Central Banks and International Organizations
3% is purchased to support ETFs and similar financial products
This ongoing demand, as well as the sheer size of the gold market, assures continuing production and mitigates risk of investing in and/or saving gold.
As for the gold held in any of your GoldVault Accounts, this will always be held at least 100% in gold. Unlike bank fiat currency accounts, GoldVault does not leverage or lend out your gold, or borrow against it. (Most banks legitimately highly leverage your money and savings which has historically often proved to be quite disastrous and the major reason that partial insurance is now provided by banks in many countries).
Many financial experts, advisors, government mints and bullion dealers advise that all investors should have some of their portfolios in gold. GoldVault fully supports this view but additionally provides the Frequent Buyer Reward to incentivize saving gold. GoldVault advises that its encouragement to save gold does not constitute Investment Advice. If you are in anyway uncertain regarding the opportunity to save gold with GoldVault, or if you are not sure a GoldVault gold Savings and/or GoldVault Everyday Account is suitable for you, then you should consult an advisor.
Finally, logic dictates that the Cost of Production of gold will continue to rise, just as will wages, costs of goods and services, etc. However, these inflationary factors, although able to be reasonably forecast, are well outside the control of GoldVault and may not perform as forecast in good faith. Similarly, past performance (the over 1,100% rise in the gold Cost of Production) over the past 20 years does not ensure that a similar or matching rise in gold Cost of Production will eventuate over the next 20 years.