The investment world is going through a crazy time. Stocks plummet in free fall, appear to bounce, and then skyrocket with every “good” or “bad” news release.
At this time it is essential to have liquidity, as suggested by market experts, economists and reality itself. The one who has funds to spare will do well to invest them in good opportunities. But how do you keep that liquidity safe when the safest bonds are devaluing and the riskiest investments are more likely to collapse? Many of you have thought about gold, but what if today there is something more valuable than gold – information.Today Khofiz Shakhidi tells why investments in gold are no longer relevant for 20 years and in which direction companies should move.
Current gold situation
Someone will object: today hedge funds still offer to invest in gold. Gold is the standard of stability. Yes, it is. Conservative representatives of hedge funds are really interested in investing in gold, as evidenced by the release of InvestorPlace, which advertises gold as the only stable asset in a period of uncertainty. This view is also shared by Newton Investment Management, BlackRock and many other leading investors.
However, do not completely rely on the opinion of hedge funds, which also often turned out to be wrong. Today, the financial sector is increasingly turning to digital technologies, and the winner is the one who knows how to properly apply them in their services, as it does Shakhidi’s digital bank.
Regarding the stability of gold, this argument has lost its relevance a long time ago. So, in 2016 and 2018, gold has repeatedly reached its bottom. Plus, the past does not always determine future events.
The beginning of 2020 was also illustrative when the unstable situation all over the world showed true investor preferences. And they turned out to be cash and quality stocks.
Someone will say: but even in an unstable period, the price of gold rises. And he will be right. However, experts argue that, given the amplitude of movement in other products, the price can easily rise to $ 2,500, but this did not happen.
The choice of a modern investor
If you want to keep pace with the market, then the best choice would be an investment in the environmental, social and management (ESG) areas. The so-called “green” gold is becoming increasingly popular among international corporations. And this is not just a new trend, but the fundamental philosophy of a modern company: the transition from sustainable assets to environmentally conscious activities.
According to Khofiz Shakhidi, gold was replaced 20 years ago with a new model, which consists of a combination of digital information with the company’s practical activities in the field of environmental protection. Proof of this is the independence of such organizations from market fluctuations.
A valid argument, as opposed to gold, may also be the activities of modern financial institutions. More and more companies are using technology to create the entire digital infrastructure: their services do not end with the issuance of cards or bank accounts. And this is the only effective approach. For example, most of the investments made by the digital bank of Khofiz Shakhidi are other digital services that allow you to build a unique ecosystem around each client.
Modern financial companies should strive for a constant presence in human life. And here to the rescue come fintech investments, rather than the bright yellow metal.
According to Mr. Shakhidi, only old-school investors continue to hold on to gold in the digital age. However, after just a couple of years, such a campaign will not only not provide them with success, but even harm their activities.