The world’s most famous investor Warren Buffet is not a fan of gold. He once famously said, “it has no utility” and that for investors “anyone watching from Mars would be scratching their head”. Thankfully for Chubb’s Valuable Goods practice, the rest of the world does not share his views. Gold is seen as the ultimate hedge against economic uncertainty. It is used by central banks, commercial banks, governments and individual investors worldwide and in industries for a variety of purposes from catalytic convertors to teeth fillings.
Whilst gold is mined throughout the world, 45% of the world’s total gold production throughout history comes from a single area of South Africa. If all the gold ever mined in history was put in one place, it would fit into a cube with sides of just 20 meters.
The ‘Gold bug’ is no illusion – gold and precious metals are part of our DNA in society. In Hollywood films, villains steal it from well protected vaults and heroes regularly stumble across entire rooms of gold coins and jewellery. It has always been desirable, romantic and the ultimate status symbol. It was ever thus, gold has been used as currency and jewellery since 700BC and to this day, many countries proudly issue bullion coins with totems of their nationalities – the American Eagle, Australian Kangaroo, Chinese Panda and the Austrian Philharmonic are just a few of the bullion coins on offer.
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Disclaimer - The content of the above article is not intended to constitute professional advice. Although all content is believed to be accurate, Chubb Insurance Singapore Limited (Chubb) makes no warranty or guarantee about the accuracy, completeness, or adequacy of the content of this article. Users relying on any content do so at their own risk.
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