Gold Economics
Gold presents a uniquely versatile investment proposition because of its dual nature as both a consumer good and an investment asset. It has historically preserved its value. Unlike fiat money, gold can’t be printed, only mine. We will assist you as an investor to decide how and when to invest in gold.
You can directly invest in gold by purchasing gold bullion, which is a measured quantity of gold that often is assigned a serial number. You can also buy gold Exchange-Traded Funds (ETFs). You have the option of physical gold ETFs that hold the commodity itself, or ETFs that aim to track the price of gold through derivatives.
Alternatively, you can purchase gold derivatives such as gold CFDs (Contract For Differences) that track the underlying asset price without actually owning any gold. CFDs use leverage, allowing you to gain greater exposure for your initial capital.
We help investors understand why gold maintains its fundamental value, how it is used as a money thing, and which factors subsequently influence its price on the market.
We investigate and promote an understanding of economic and policy issues associated with gold production and trading of gold products based on market assessments, competitive evaluation studies, commercial intelligence, product profiles, and gold price forecasting.
We assist investors to understand how to use gold for portfolio diversification as a source of liquidity in periods of financial turmoil.
We make gold investment decisions for investors after rigorous economic analysis where we include CAPEX and OPEX calculations, market price analysis, and modeling of different scenarios to develop a Sensitivity Analysis.
Capital expenditures (CAPEX) are expenditures altering the future of the business. Capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year. Simply, in other words, CAPEX is a business expense incurred to create future benefits.
Operational Expenditures (OPEX) are those expenditures required for the day-to-day functioning of the business. Simply, in other words, OPEX is the money the business spends in order to turn inventory into throughput. Operating expenses also include the depreciation of plants and machinery which are used in the production process.
Sensitivity analysis is a tool used to predict the outcome of a decision if a situation turns out to be different compared to the key prediction(s). We use this technique to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions. Such variables may be operating costs, capital costs, market price, and others depending on your project.
We determine how the Project’s Net Present Value, Internal Rate of Return, and Payback will be affected by variations in CAPEX, OPEX, and Market Pricing, and we provide the investor with information on the potential risks originating from project variables. We give you deep insights to help you make really well-informed choices prior to gold business investments.