Used as money for more than 4,000 years, gold bullion is recognizable in almost all countries and cultures. Even today many business transactions are closed using gold bullion and gold is still used as the ultimate means of settling accounts between central banks around the world. It is also one investment that has traditionally maintained its relative value. During the Roman era, an ounce of gold bought a set of men’s clothing. Today, however, an ounce of gold buys more than just a man’s suit.
While many investment options come and go, we believe gold offers a value unmatched in uncertain financial times. In the United States, during the financial market crash of October 2008, gold maintained its value while all sectors of the equity market nose-dived. Called a “currency without a country,” gold remains valuable when governments fall, when currency plummets, or when banks fail. It can be converted into cash with relative ease and is traded 24 hours a day in markets around the world.
Historically, gold has maintained a consistent value, independent of other assets. In fact, charts show that often when the value of traditional assets fall, the value of gold increases dramatically, making it the perfect diversifier in a portfolio perfectly balanced to provide long-term security. That pattern makes gold one of the most popular choices in today’s fragile market. Impervious to political unrest, corporate greed, and economic upheaval, gold diversifies and balances investments better than anything else. Once again, investors are discovering that gold can build a secure foundation to balance their portfolios, and more and more people are choosing to balance their investments with the security of gold.
Mining Company Shares
Pressing demand, along with various changes in the fundamentals, has pushed the price of gold from a low of $250/oz. in June 2001 to over $1700/oz. by Jan 2012. This represented an increase exceeding 580% before the correction in 2013. This increasing demand for gold means an increasing demand for gold mines – and gold mining company shares.
Today, hopeful advisors sift through stock reports to determine the best mining companies that offer stability and a conservative, yet rewarding, approach to mining gold.
Clavo Rico is one of only a few junior gold companies to actually produce gold. The Company’s commitment to efficiently mine the most promising sites with readily accessible reserves makes Clavo Rico a more credible junior gold company among that class of stocks.