Preciosos 11Onze’s gold outpaces inflation again
Although it experienced some fluctuations throughout the year, the price of gold rose 15% in 2023 to an all-time high of $2,130.20 per ounce, more than offsetting the headline inflation of 3.1% in Spain.
In February 2022 we launched Preciosos 11Onze, offering members of our community the opportunity to buy gold to protect themselves against inflation. Rising prices caused by geopolitical uncertainty and the energy crisis, together with currency tension due to the loss of value of the euro against the dollar, caused many families to lose much of their purchasing power.
In addition, having money in a bank account had become a problem, as bank fees on money held in current accounts were excessive and remuneration on savings was at a record low after a year of negative interest rates.
This led to a flight from deposits by many families who decided to diversify their savings by taking their money out of banks in favour of other products and investments offering higher returns. In this context, buying gold was not an investment or an instrument of speculation, but one of the few options people had to safeguard their money.
In that first year of Preciosos 11Onze, year-on-year inflation in Spain was 8.4%, while gold appreciated by 9.5%. This increase in the value of the golden metal more than compensated for the rise in prices, solidifying its reputation as a true safe-haven asset that protects our savings, especially in times of economic crisis.
Gold prices reach new all-time highs in 2023
Against a backdrop of high-interest rates, the US banking crisis, geopolitical tensions, military conflicts and emerging market demand, gold outperformed expectations to reach its record price of $2,130.20 per ounce on 4 December, rising in value by 15% over the previous year.
This is a much higher return than other low-risk savings or investment options, such as time deposits or Treasury bills. More importantly, it more than offsets the 3.1% headline and 3.7% core inflation in Spain in 2023.
Looking ahead, the gold price is likely to remain bullish through 2024. Geopolitical tensions continue to worsen in the Middle East, raising near-term inflationary risks. According to a Reuters survey of 30 analysts and market participants, gold prices will rise during 2024 from this year’s average.
On the other hand, the Bank of Spain forecasts that economic growth will be slower this year and that inflation will remain around 3.3%. This means that, for yet another year, Preciosos 11Onze’s gold will once again be an optimal choice for correcting inflation and safeguarding our savings.
If you want to discover the best option to protect your savings, enter Preciosos 11Onze. We will help you buy at the best price the safe-haven asset par excellence: physical gold.
If you liked this news, we recommend:
Gold price forecast for 20243 min read
After a 2023 in which the value of the golden metal...
Will you be the last one to protect your money?4 min read
Inflation, the low-interest rates offered by banks...