Investing in gold belongs to the category of the safest long-term investments.
A conflict between expected returns and invested capital may arise only if the investment is short-term, meaning shorter than two years.
If the investment is long-term, meaning longer than that period, the benefit gained through the increase in gold value will clearly become evident.
If we look back over the past twenty years, we can see that the value of gold has increased by an average of 12% per year.
Of course, there have also been periods when the value of gold moved negatively, but over time, the trend of growth has been far more dominant than the trend of decline.
The most important characteristic of gold is that extreme events tend to have a progressive impact on its value.
Such extreme events can often negatively affect our income. If that happens, gold can help us overcome newly arising financial challenges more easily.
This essentially means that gold will be worth the most when we need money the most. In that sense, gold is truly our reliable partner during times of crisis.
Thanks to this characteristic, financially secure individuals who seek a stable and peaceful future include gold as part of their asset portfolio.
HISTORICAL FACTS AND RISKS
Crisis situations have often caused serious difficulties for people in this region. Wars created the greatest social and economic disruptions. Younger generations do not remember the crisis that occurred a few years after the breakup of Socialist Federal Republic of Yugoslavia, when a phenomenon known in economics as hyperinflation took place. In that situation, people tried to protect their money by exchanging the domestic currency for the German mark and keeping it, as commonly said, “under the mattress.”
About a decade later, another devaluation of money occurred, this time on a European level. In a legally regulated process, the German mark was replaced by the new European currency, the euro.
The conversion rate used was 1 euro to 1.96 German marks (DM). Shortly afterward, products that had previously cost one German mark began costing one euro instead. Based on this, it can be concluded that this economic decision effectively reduced the purchasing power and capital of European citizens by nearly one half.
The most recent devaluation of money occurred in the period from 2022 to 2025. Following the outbreak of the Ukrainian crisis, there was a sharp increase in the prices of all goods and services. Strong inflation emerged as a consequence of the COVID-19 pandemic, during which governments around the world injected enormous amounts of money into their economies in order to support vulnerable industries and keep them sustainable. The beginning of the Ukrainian crisis, whether coincidental or not, coincided with the end of the pandemic and marked the starting point of intense inflationary pressure. As a result, the period from 2022 to 2025 was characterized by strong inflation affecting the prices of virtually all goods and services.
During this same period, the value of gold increased by an extraordinary 70%.
Historically speaking, gold has been the asset most resistant to inflationary pressures and other monetary risks, including currency replacements.
The price of gold has changed significantly throughout history. One ounce of gold (31.104 g) was worth 80 US dollars in 1973.
In the early 1980s, the price reached a record high of 700 US dollars.
In the following years, the price of gold fluctuated between 300 and 400 US dollars per ounce.
That trend continued until the early 2000s, when one ounce of gold was worth around 400 US dollars.
Today, one ounce is worth approximately 3,400 euros, representing an extraordinary increase in gold’s value of around 900%.
It is precisely through this growth in value that gold protects money from inflation.
The value of gold has increased by an incredible 140% over the past five years.>
Because of situations like these, which can undermine our financial stability,
it is important to include the most resilient asset class in our portfolio — investment gold.
Through our interactive work with clients, we have identified the most common mistakes made by potential investors.>
1.The belief that the current price of gold is too high, leading people to wait for it to return to the value it had several years ago.
2.The fact that investors make a strategic decision to buy gold, but for various reasons permanently give up on the idea.
3. Delaying the decision to purchase gold. Investors in this category usually return only after the price of gold has risen significantly and they realize how much more money is now required to buy the same quantity of gold compared to the moment they first considered the investment. At that point, their status changes and they often become serious gold investors.
