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January 18, 2022

Erste: Gold-still interesting for investors

2009 was an exciting and lucrative year for gold investors, shows a report from Erste Bank. The gold price broke the USD 1,000 mark on a sustainable basis and increased by 24% y/y in USD terms and by 20.5% y/y in EUR terms. But 2010 and beyond should turn out even more interesting for gold, a press release from Erste informs. Gold has outperformed all other asset classes in the past ten years, gaining an annual average

of 16.5% since 2001 (or 13.5% in euro terms). Although copper and oil recorded similarly positive performances, their volatility was considerably higher and the trends more erratic. The 2010 development has been outstanding– the precious metal has increased by 10.5% (in USD) or 28.5% (in euro), respectively. Amid the global crisis of confidence, investors seem to be re-discovering the fact that gold has been used as money for thousands of years. In periods where “black swans” are no singular occurrences but are practically coming in flocks, the status of gold as a safe haven has yet again proven its worth.

Gold is the money that has won the favour of the free market over the past millennia. Gold has always been a seismograph for the health of the financial and monetary system, as well as inflation. Although the focus is currently on the Eurozone, the turbulences should not distract from the problems in the USA and Great Britain. Gold is an excellent measure of the quality of paper money. It contains no liquidity risk, and it is globally accepted and traded around the clock, Erste specialists also said.

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