Gold in portfolio
- Offers competitive returns in both bull and bear stock market environment
- Extremely liquid, over €100 billion/day market
- Gold is the only asset class that does not bear a counterparty risk (BIS)
- A truly global asset
- The third largest reserve currency of central banks
Protection from inflationGold returns during low and high inflation
For the last 50 years gold price has reacted to differently inflatory environments in the following ways:
| Inflation | Gold appreciation |
|---|---|
| Less than 3% | 7% |
| Over 3% | 14% |
| Over 4% | 21% |
| Over 5% | 27% |
Gold and other currencies
Financial instruments such as stocks, bonds and apartments carry a risk of future cash flows, and along with this risk come the calculable returns. Gold, on the other hand, should not be compared to such investments. Just like other currencies, gold does not yield anything and thus there is no associated risk of future cash flows. In contrast to other currencies, gold does not have a central bank that could create it out of nothing. Thus gold is the only asset that truly does not carry a counterparty risk.
Investment returns measured in gold
What is often overlooked when evaluating investment returns is how currencies lose purchasing power when measured in gold. Even a substantial nominal return can end up short or even unprofitable.
When measuring the real returns in gold from the beginning of 2000 to the end of 2021, it turns out that none of the major asset classes had positive returns.
During the high inflationary years of the 1970s the S&P 500 index gained 17% appreciation in dollars. When measured in gold, the S&P 500 lost 92% of its value. At the end of 2021 the S&P 500 index was at the same level as it was in 1965 when measured in gold.
Gold is an extremely liquid asset class
The average daily turnover in the 2010s:
| Market | Daily turnover |
|---|---|
| S&P 500 | €195 billion |
| Gold | €160 billion |
| German Bunds | €25 billion |
| Nasdaq Helsinki | €0.4 billion |
Who owns gold
See what some large institutional investors think of gold.
| 🇺🇸 The United States | 8,133 t |
| 🇩🇪 Germany | 3,355 t |
| 🇮🇹 Italy | 2,452 t |
| 🇫🇷 France | 2,437 t |
| 🇷🇺 Russia | 2,299 t |
| 🇨🇳 China | 2,011 t |
| 🇨🇭 Switzerland | 1,040 t |
| 🇯🇵 Japan | 846 t |
| 🇮🇳 India | 787 t |
| 🇳🇱 The Netherlands | 612 t |
| 🇸🇪 Sweden | 126 t |
| 🇩🇰 Denmark | 66.55 t |
| 🇫🇮 Finland | 49.02 t |
| 🇮🇸 Iceland | 1.98 t |
 Voima's customers |
1.20 t |
| 🇪🇪 Estonia | 0.25 t |
| 🫵 You | Starting from a milligram |
Voima Account
- Exchange and store physical gold and silver
- Storage outside the banking system
- 24/7 liquidity
- Gold bar withdrawal within a 24 h window
Direct ownership of physical gold with a Voima Account
Large institutions and central banks own physical gold directly. This is contrasted with gold ETFs or gold futures, in which the gold is embedded in a complex structure of ownership.
A gold ETF is a share in a fund, whose holder in reality owns shares or zero-coupon perpetual bonds issued by the fund. Gold futures are derivative contracts. Both ETFs and futures are essentially IOUs, which involve a risk that the counterparty cannot meet their liabilities.
The ownership structure of gold should be a direct as possible to avoid bearing counterparty risk. With a Voima Account you own physical gold directly.
Voima Account pricing
| Account fee | 0.99%
Annually from gold holdings |
|---|---|
| Exchange euros for gold | 1.99% |
| Exchange gold for euros | 1.99% |
Investment grade gold is VAT-exempt.
VoimaCredit™
VoimaCredit™ with your Voima Account gold as collateral.
- Credit with your Voima Account gold as collateral.
- Up to 70% of the value of your gold holdings.
- The effective annual interest rate is 4.9%.
- Interest is paid quarterly from your Voima Account.
- Automatic quarterly renewal.