Over the last two years, the market with precious metals has experienced the best period. This year, IBIS InGold has sold gold and silver for 766 millions
16. 04. 2018IBIS InGold
10 April 2018, Prague – number one in the area of saving in gold and silver, provided under the trademark iiplan®, in the territory of the Czech Republic and Europe has experienced an annual increase in the volumes of target amounts in saving by 31.8% in the first quarter of 2018. The volume of target amounts in the first quarter of 2018 amounted specifically to CZK 766,691,026. By comparison, the amounts achieved CZK 581,707,910 in the same period of the last year.
It is possible to buy gold and silver in iiplan® by means of regular payments from CZK 100 per month. However, the average amount of savings negotiated is much higher; in 2017, it amounted to CZK 4,500 per month.
“This year, we have noticed an increase in the amount of monthly savings negotiated. Clients negotiate their savings for CZK 6,600 in average per month, which is by almost 46% more than in the previous year. They truly appreciate product simplicity, flexibility and attraction. All they have to do is to specify the time and amount of monthly savings. The proposal of the contract is immediately available to the clients, and they shall accept it by the first payment. In the course of saving, they get the metal bought into their hands or they can securely store it free of charge in our safes,” Libor Křapka, chief executive officer of IBIS InGold®, said. The most favourite investment product is half-ounce (15.55 g) gold coin in the value of 16,000 CZK, and the gold ingot with the weight of 10 g in the value of ca CZK 10,000.
Recent months have seen a boom in the price of gold in dollars. Gold has experienced its third profitable quarter in a row, which has not happened since 2011. The growth of gold prices comes despite the fact that the Federal Reserve Bank keeps on increasing US interest rates, which was the most important event of the last month. FED moved rates by a quarter percent to the tariff section of 1.5–1.75%.
Another increase in the gold price is caused by the steps of US President Donald Trump who started a business war with China. Therefore, investors are afraid of shaking in the stock market the consequences of which were experienced by the New York Stock Exchange as well as other world’s stock markets. At the same time, leading economists and experts point out to the fact that even though geopolitical tensions in Korea may falter, appointing John Bolton new Trump’s National Security Adviser opens new speculations on the possibility of harder approach to Iran, which will help some commodities (i.e. gold) in the next quarter.
Investment in physical gold in the last several years zooms up in popularity in the Czech Republic as well as in the world. Small and big investors, including central banks, create gold reserves in order to protect themselves against fluctuations in the markets and global risks. “Increasing purchases of gold is a clear response to growing geopolitical risks and increasing rates in USA,” Libor Křapka, chief executive officer of IBIS InGold®, explained.
Dollar has lost almost 3% since 31 December, and global stocks are aimed towards the first quarter decline since 2016. The forecast of FED regarding the development of the US economy sounded optimistic, however, this optimism did not reflect in the number of expected increases of interest rates. FED still expects only three increases in 2018, including the one in March. After this announcement, analysts immediately started to speculate regarding the reason of this careful procedure. The most of them have agreed that the main reason is the fear of a trade war between China and USA. Ironically, introducing customs and other protection measures can harm the US economy more than benefit it. Therefore, immediately after the press conference of the new president of FED, Jerome Powell, the gold, insurance against uncertainty, started to grow, and the US bonds started to fall. The price of gold reached the limit of 1,350 USD per ounce.
Slight uncertainty could be observed in the Czech Republic as well. The Czech National Bank reported a loss in the amount of 243.2 billion CZK last year whereas the loss in the amount of 549 million CZK had also been recorded in 2015. Therefore, they informed on changing their strategy in March this year. The governor of the Czech National Bank confesses that the economy is slightly overheated, and as it can be seen, it is pulled especially by debt. Today, the USA is considerably more in debt at the federal level than before the last crisis. And the Czech Republic moves in a similar direction. It is high time to start slowing down. We recommend saving and creating reserves.
In fact, gold is really the best long-term store of value and investment portfolio protection. The ounce of gold amounted to over 10,000 CZK back in 1996; today, the price of the same ounce amounts to ca. CZK 30,000. If somebody bought the ounce of gold 20 years ago and still owns it today, he/she excellently profited because its value has tripled.
The fact that the Hungarian National Bank decided to move its gold reserves from London back to its territory is also an interesting piece of information. It concerns 3 tons of gold which are all gold reserves owned by Hungary. Hungary follows Netherlands as well as German that announced the move of their gold reserves to their territory formerly. This trend proves the fact that central banks perceive the importance of their gold reserves more and more and they want to have them under their control. They have bought more than 2,700 tons over the last three years. They keep more than 33,600 tons in their reserves, i.e. a fifth of all the gold mined. The interest in gold is so big that Canada doubles its mining.
For more information contact:
Customer helpline
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IBIS InGold®, a. s.
IBIS InGold® is a leading trader with investment gold and silver. The company has been operating in the market for over 20 years. In the Czech Republic and Europe, they became a leader in providing saving in gold and silver. They provide the general public with simple and flexible saving under the trademark iiplan® with the amount of instalments already from CZK 100 per month and without any penalties.
The main offer of the company is d_change_ mainly by precious investment gold ingots from the Swiss Refinery PAMP® with the weight from 1 to 1,000 grammes and investment coins from Australian refinery The Royal Australian Mint with the weight from 1/10 ounce to 1 ounce.
The company is directly connected to the most prestigious Swiss Refinery PAMP® and acts on their behalf not only in the Czech market. As a result of this, IBIS InGold® can provide its customers with the best services both during the purchase as well as during the repurchase of the investment metals bought. Another advantage is a unique possibility of verifying the origin and authenticity of investment gold by means of VERISCAN™ technology. The company as one of few subjects in Europe obtained a licence for the sale of PAMP® ingots not only to final customers, i.e. retail investors, but also to wholesale partners, and for online sale.
IBIS InGold® also offers products from other world mints – The Royal Canadian Mint and The Perth Mint. They deliver their products to customers throughout Europe.
The volume of target amounts in iiplan® contracts concluded and one-time businesses per 2017 exceeded a record amount of 2.38 billion CZK; there was an annual increase in the total sale by 69 %.
The most sold products are half-ounce (15.55 g) gold coins and gold ingots with the weight of 10 g.
More than 23,000 customers have confidence in IBIS InGold®.
