Back on the success of its launch of 11Onze Preciosos, the community fintech 11Onze has launched Gold Seed encouraging its members to take advantage of the good performance of gold in periods of instability and make their savings grow.
Explaining the rationale behind the new product, James Sène, Founder 11Onze said, “To have a harvest, you must first sow. We called the new product Gold Seed because you buy it with the aim that it will grow and bear fruit. The idea is quite simple: we put in place grouped purchases of physical gold with the aim of selling it for a profit. For 12 months, the gold will be sold at the best times of the market to make a profit. And at the end of the year, we will see what we have harvested!”
During the contracted period, 11Onze will share quarterly reports to update the evolution of the Gold Seed. The minimum investment is €4,000, and the amount plus possible profits are settled at the end of the 12 months of the contract. The aim of the sales and purchases is to achieve staggered consolidations of 2%. In other words, when it is possible to sell for more than 2% of the initial amount, it will be sold and this percentage will be consolidated as a gain. Anything in excess of these 2% tranches will be used for another sale and purchase to continue to grow the Gold Seed.
In recent years gold has already generated profits far in excess of those achieved with investment funds. A recent study shows that in 15 years (2006-2021) Spanish investment funds have generated an average return of 1.91%.”
Historically, gold has been an excellent hedge against and deflation. During inflation, gold price tends to rise when the cost of living increases. Over the past 50 years, investors have seen gold prices soar and the stock market plunge during high inflation years.
And during deflation, when prices decrease, business activity slows, and the economy is burdened by excessive debt, gold prices tend to soar. This is because the safest place to hold cash at deflationary times is in gold and gold coins. It is also a safe bet during geopolitical uncertain times.
Sène added, “We believe gold should be an important part of a diversified investment portfolio because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline. Although the price of gold can be volatile in the short term, it always has maintained its value over the long term. Through the years, gold has served as a hedge against inflation and the erosion of major currencies, and thus is an investment well worth considering.
Moreover, protecting savings with physical gold has been one of 11Onze’s main contributions to its community, and now the range of products is expanding. Therefore, in the face of volatility, high inflation and the growing crisis of confidence in the banking system, gold is once again strengthening its position as a safe-haven asset.
