Credit Amanet: 5 advantages of investing in gold bars – 25.04.2024

One of the most popular safe-haven assets on the market, gold maintained its privileged position in 2024 as well, when its value recorded historical highs, according to a statement from CreditAmanet, sent to the editors. The growing interest in this metal, worldwide, is easily observed – its price has increased since the end of 2023 by 21%, as a result of high demands on the market, especially from central banks and investors. But gold is also a preferred investment by small investors, by all those who are attracted by the security that this asset brings. Buying gold jewelry is a popular method of securing savings. Along with this, gold bars and coins bring significant advantages to those who want to diversify their portfolio or protect themselves from inflation and losses of any other nature, the source reports.

According to the press release, “One can opt for ingots of different weights, starting from 2 grams, up to even 100 grams”, says Cosmin Popovici, CEO of CreditAmanet, the company that manages the most diversified trading platform for gold, electronics , new gold jewelry, as well as luxury products. “Gold bars have the advantage that they can be immediately converted into cash. Moreover, the product with the highest value traded in recent years at CreditAmanet was a 2.5 kg gold bar,” says the representative of the Romanian company.

Prospects for gold price growth make this safety asset even more attractive. Thus, if in December 2023 the price of gold was approximately 60,000 euros/kilogram ($2,066/ounce), the historical maximum recorded this year was 72,500 euros/kg ($2,390/ounce), which means an increase of 12,500 euros/ kilogram. Attractive due to its stable value, easy to trade anywhere in the world at any time, safe protection against inflation, gold has been one of the most sought-after assets due to its obvious advantages. Here are only 5 of them, as shown in the company’s press release.

1. They are an effective protection against inflation

Throughout history, gold has always provided an effective hedge against inflation. In periods when the value of national currencies decreases (and with it the purchasing power), the price of gold increases. Thus, it turns into a strategic reserve, because it is not influenced by the political or economic changes that usually affect other types of assets.

2. They are a good way to diversify your portfolio

An effective diversification of the portfolio is achieved by identifying investments that are not closely correlated with each other. Gold can be combined in a business portfolio with shares or bonds, because it is a much more stable asset and significantly reduces risks.

3. The demand for gold is increasing

Recently, there has been a high demand in the market for safe-haven assets such as gold. This tendency was manifested in the case of central banks and large investors, but also at the level of the population. “From our experience as retailers in this field, we found that the interest in gold remains high. Last year we had an increase of over 30% in turnover in the gold segment, and in 2024 we aim for an increase in gross income of over 40 %”, says Cosmin Popovici.

4. Gold is internationally recognized capital

An important benefit of investing in this metal is its standard value in any country. In Bucharest, Paris or London, the price of gold is the same. More precisely, gold has a universal value, which it keeps unaltered regardless of the area in which it will be traded.

5. Gold bars can be easily converted into cash

Unlike other types of investments, gold bars have the advantage that, when needed, they can be turned into liquid money anytime and anywhere “It represents an investment in a tangible asset, easily converted into cash, an asset that provides security, preferred by many people precisely for this reason”, says the CEO of CreditAmanet.