We support bullion or central banks with a range of essential modules such as;
Fundamentals of gold demand and supply and the outlook for gold. The role of gold as a reserve asset. Case studies on gold reserve management in practice mining and exploration, The global gold market infrastructure, including the loco-London market.
Gold market operations, Upgrading and refining gold and accounting for gold.
The role of the Central Banker has become increasingly challenging in recent years. As a monetary policy maker, Central Banks ensures that national reserves are properly managed.
We believe that gold can play a very important role in national reserves of the country. As advisers, we aim to establish a proper gold reserve management to follow three basic principles;
In an era of persistent economic fragility, these principles need to be analyzed in forensic details. Gold is an important asset that are highly liquid and risk free.
The advantage of gold reserve as a national reserve for (country) is that it can be gained locally with the local currency. Broadly speaking, reserve assets represent a nation’s wealth accumulated over many years. As Gold has no credit risk, it is one of the safest assets a nation can hold. It is also one of the most liquid assets available, so it plays an incredibly useful part in a central bank portfolio.
Gold is also a very important hedge mechanism for long-term assets holders in their portfolios particularly against a backdrop of economic and political uncertainty. Significant increases in inflation will ultimately increase the gold price. Reserves in gold is a kind of an insurance.
Recent research commissioned by the World Gold Council suggests that, if central banks increase their gold holdings by 2%, 5% or even 10%, that can increase returns and reduce volatility over the medium and long term. As such, gold delivers distinct and notable benefits, increasing liquidity, reducing risk, bolstering returns and delivering true diversification from geo-political threats.