Historically, buying gold has been considered a failsafe investment when compared to other assets. This is true, gold is a tangible asset that cannot fail to exist, but it is still a commodity that can fluctuate in value.
As it can clearly be seen here, gold fluctuates on a constant basis and to add into the mix, is currently at record breaking highs. If we remember the phrase “buy low, sell high” and ask the question whether now is a good time to invest directly into gold, the answer would be a resounding no, well not according to this sentiment.
Gold Bonds?
No one likes losing money, so if not gold, what options do investors have, if they want to benefit from this luxury investment but also reduce the risk involved? Let’s look at Gold Bonds, and why we consider them to be the most attractive way to get into this market.
Gold Bonds, like THG Capital Savings products, use the processes of front and back-end pricing combined with gold-streaming. In short, gold-streaming is the sourcing of raw/mined gold from around the world and gauging what the bullion value it contains. Once this is assessed, the price of the bullion content (100% pure gold) is attained, then take off the cost of buying the raw gold (called gold doré) and other associated costs (insurance, shipping, possible licencing costs etc) and its then, a simple equation as to whether the deal is profitable.
Each trade done, once assessed as profitable, is then transacted, with no money changing hands until the chain is complete; this is called ‘risk mitigation’. These profits are then locked in and build up to provide the returns offered by the Bond.
The Investment Operators of THG Capitals Gold Bond, are able to assess each case with precision and can calculate the annual return to investors. Currently this is set at 9% p.a. which is clearly a high return for a securely structured Bond.
If this risk mitigated, high yield Bond is appealing, then contact THG Capital Savings for more information about our best fixed rate bonds and take a look at the latest video from our brand ambassador Oz Clarke here.
