Investment and Finance
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Gold Bonds for Family Offices

1/19/2022 8:00:00 AM
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The upcoming global crisis will affect most asset classes in a downward spiral, however it is most likely that Gold will increase in value. Gold therefore is an ultimate hedge against stagflation and depression and is sought by family offices. The problems with gold however make it un attractive in the short run , these include high storage fees, above premium acquisition costs and zero income .

Here is a Family Office Investment for you that is better than gold because it mitigates the costs while keeping the advantages . It's about a unique bond Backed by Gold and offering a staggering 8.5 percent ROI per year. 

Further the issuer is a very solid Family offices who utilizes the Investment cash flow to buy the Gold from miners and melt it into bars 

Why Gold?

Since the beginning of civilization, gold has been a reliable asset that has commanded the financial market for any investor who has wished to invest safely. This level of reliability on this asset has meant that investing in this option is always a good opportunity for good returns in the future in a timeframe that suits the investor. 

In fact, among all investment options, gold will always remain the safest option because of its stability and steady growth in the market. Other assets may seem too risky and unstable for most investors, especially inexperienced investors, so turning to this asset can be a tempting option. 

During global economic crises or times of uncertainty such as those experienced since the beginning of the Covid-19 pandemic, gold has always seemed to be the way out for people who choose to protect their finances and assets, in fact, there are several benefits that this asset offers to investors' portfolios. 

Among the advantages of investing in gold we have that:

- It protects against inflation: this problem can cause the loss of investor funds in a big way, however, over time it has been shown that gold has been well ahead of inflation. 

- Easy to buy and sell: physical gold can be bought and sold in banks in some countries as well as in jewellery stores. 

- No need for major maintenance: it can be stored in one place for years without deteriorating over time. 

- Stability: Even in crises, the price of this asset remains relatively stable and does not suffer major falls like other assets. 

- No depreciation over time: It will not lose its value through "use". 

- Easy to liquidate in emergencies. 

It is no coincidence that with these conditions, gold is among the safest and most influential assets in history as long as commercial transactions have existed in human societies since these principles have been maintained throughout this whole time. 

However, with the advancement of the global financial system as we know it today, new mechanisms have been invented to be able to trade gold, either in physical form or in some form of contract such as a bond. This, of course, has led to an increase in trades of this asset, making it more valuable and more relevant than it has ever been.

Gold bonds

Many investors interested in acquiring gold assets have opted for gold bonds in recent years, as this can provide some additional advantages compared to buying physical gold. 

Gold bonds are links established between an investor and a certain bank authorized to carry out such transactions, whereby the buyer of the bond obtains a contract for a certain amount of time and a certain amount of the value of the gold purchased by the investor, with a sustained interest rate throughout the duration of the contract. 

This allows investors to operate with the different values and fluctuations that gold undergoes in the market, in addition to obtaining a fixed interest rate on the asset, and the investment can be used as collateral for future loans. 

This agent is in charge of operating in this sector, offering some advantages for those who wish to acquire this type of bond in the market, as well as having a fairly complete security system to carry out these financial activities. 

The Objective

The "Private Corporate Bonds" are about providing the client or investor with an attractive contractual offer in terms of the nominal interest rate per year, which is designed to provide them with a quarterly fixed income on their investment, which will be paid through the profits obtained in the process of trading gold in these financial operations. 

Basically, what we have been saying, such a contract will have all the financial guarantees necessary for the client to have the feeling that they are investing their money in a secure, stable and profitable asset for the future.

After signing the contracts, the company will operate in the corresponding financial market to guarantee the return on investment in the time previously agreed between the client and the provider, as well as ensure that the physical gold that is used as a guarantee is in proper custody while the bond is effective for as long as it is needed or established. 

This trading process rigorously maintains the price of gold at relative stability compared to other assets in the financial field, such as real estate or the stock market.

It is worth noting that this bond, unlike some issued by central banks in different jurisdictions, is not governmental but private. That said, the contract between the client and this company is not subject to the Superintendence of the Securities Market of Panama. 

Structure of the Bonds

These private bonds offer a clear structure that each contract will follow until the time of maturity. This structure is as follows: 

- Physical guarantee on the capital of 105%, backed by physical gold.

- There is no direct line of exposure to the volatility of the gold price in the financial market, giving an additional layer of security. 

- Fixed annual return of 8.5%, paid every 3 months. 

- 2 years contract duration. 

Basically, the contracts established in these private gold bonds are composed of these 4 elements. It is up to the investor to select the amount of money he wishes to invest. 

In order to invest in these private bonds, a minimum capital of 100,000 USD is required, up to a maximum capital of 10,000,000 USD, and it should be noted that requesting the liquidation of the asset before the established time means a penalty of 2.5% of the invested capital, in addition to having to make the request 60 days before the liquidation of the asset. 

At the end of the two years established by the contract, the investor has the power to decide whether to "renew" the contract for two more years as many times as he wants, or simply withdraw his investment and profit. 

Who is this Financial Instrument for? 

Investments in gold-related assets are for anyone who wants to avoid any kind of risk that could drastically alter the value of the asset. This includes political risks, risks in the real estate market, risks in the stock market, risks in any other financial market that makes your assets volatile and unreliable. 

And gold bonds are for those who want to generate additional cash through the interest rate offered in the contract of 8.5% in this case. 

Many people hold significant amounts of money in savings accounts without knowing what to do with the capital, and many others are willing to take large risks in other markets with the intention of generating dividends. However, taking risks can also result in the loss of capital or at least a significant portion of it, and many people are not always able to afford these losses. 

About the provider

This is a financial structuring and intermediary institution, which specialises in investments and detects the best investment opportunities with other safe, stable and profitable companies. 

Thus, they always look for innovative options and projects all over the world in order to offer the clients the best up-to-date financial options. 

Disclaimer: The information contained in this article is for informational purposes only and does not constitute financial advice or recommendations. Investing in financial products or cryptocurrencies involves risks, and you should be aware of the potential risks involved before investing. The content on this website is not intended to be a solicitation or offer to buy or sell any financial products or services. The information provided does not take into account your specific investment objectives, financial situation, or needs, and should not be relied upon as a substitute for professional financial advice. You should seek independent advice from a financial advisor or other professionals before making any investment decisions. Please be aware that the legal status of cryptocurrencies and other financial products may vary in different jurisdictions and may be subject to regulation. It is your responsibility to ensure compliance with any relevant laws and regulations governing the sale and marketing of financial products and services in your jurisdiction.

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