Facts about Gold
Atomic number 79, melting point 1064.18 °C, density 19.32 g/cm3.
These are the unemotional facts about one of – maybe THE – most emotional element in the world: the precious metal Gold.
Gold is part of human history. Be it as a gift to the Gods, a tribute to a ruler, a token of esteem or as means of payment (currency).
While currencies of the modern age – through the help of central banks - seemingly can be increased indefinitely, Gold is at the end of a long value chain, from exploration to identification of the Gold resources, to the implementation of the necessary infrastructure to mine the Gold, to the final separation from the rocks and debris.
During the past years, the pace of world-wide gold production has been stable. This is despite the fact that the rising gold price has made mining more financially attractive. Low gold per mined tonne of ore an increasing ESG restrictions do limit the mining companies ability to increase supply.
Of great importance for the gold market is the role of the Central Banks. For a long time Central Banks have been net sellers. Under the Central Bank Gold Agreements (CBGA of 1999) between 400 to 600 tons have been sold into the market. Since the year 2009 this trend has reversed. While the Central Banks of the developed industrial European nations have mostly closed their sales programms, the Central Banks of the Emerging Markets from Far East and South America are seen as buyers in the market. The statistics of the World Gold Council show the total net gold purchases by Central Banks in 2023 were above 1,000 tons for the second time in a row.
Against the background of the uncertainties arising from the European Debt Crisis and the QE programms, Gold was also a favoured by private investors during crisis. Investment took place mainly by bar and coin hoarding. Like the Central Banks, a shift in the buyer structure of private investors has occurred. New buyers are mainly from Emerging Markets, while the share of the developed economies is shrinking.
Last but not least, in times of uncertainty and crisis, Gold is still seen as an important part of an investors's asset allocation and wealth management. The so called “safe haven” is often seen as classical inflation protection and risk diversification.
The Irish Gold fund, Aureus Fund (Ireland) plc., combines the security of physical allocated Gold with the advantages of a daily tradable fund without significant issue or redemption charges.