Gold, a key factor in The Great Reset

At its annual meeting in Davos, the World Economic Forum announced that a new approach to the functioning of our societies is needed after the pandemic has shown the weakness of the current economic model. Consequently, it proposed to reset the global economic system by promoting a more sustainable model. A paradigm shift with geopolitical ramifications where gold will play a key role.

The Great Reset is the term the World Economic Forum (WEF) has chosen for its initiative that aims to rethink the future of global relations, the direction of national economies, the priorities of society, and the reference of business models. In short, it is the thought that many people had in mind after experiencing the sanitary crisis.

At first glance, it might seem like a utopian vision of the economy of the common good as an alternative model to capitalism, or as the WEF points out, “a major reboot of capitalism is needed”, but in practice, at least for the time being, it is nothing more than a declaration of intent, vaguely defining the way forward, but without specifying the steps to be taken.

That said, in the current economic context of an energy crisis, an inflationary crisis and a debt crisis, caused in part by the pandemic and in part by the sanctions imposed on Russia as a result of the conflict in Ukraine, it is clear that a reset of the established economic model is not only desirable but inevitable.

The loss of credibility of the international monetary system

This economic crisis defined by record levels of public debt frames a global macroeconomic scenario that will lead to a recession in several Western countries. Moreover, the danger of generalised stagflation, i.e. a scenario of high inflation, a slowing rate of economic growth, and where unemployment remains high, is an unavoidable reality that more than one economy will have to face, given that the fiscal and monetary policies that have been applied to tackle the crisis are further increasing the debt of the States.

The increase in macroeconomic volatility has meant that now more than ever, the central banks of many countries are buying gold as if the world were coming to an end in order to protect their reserves. While it is true that countries not aligned with US geopolitical interests have been buying gold on a massive scale for a decade to shield their economies from economic sanctions and the eventual disintegration of the dollar as the world’s reserve currency, it is surprising, or not, that the central banks of Western countries are also joining the ‘gold rush’.

Given this scenario, one might think that the days of the current monetary system are numbered. As the financial analyst, José Luis Cava, explains, “everything points to the fact that there is an agreement between the Central Banks of each Eurozone country and the ECB to harmonise the physical gold reserves of these Central Banks until they reach 4% of GDP”, and he continues, “debt levels have shot up to absolutely unsustainable levels. China, Russia, and India have announced new currencies backed by physical gold”.

What is clear is that whatever the final outcome of the paradigm shift in the global monetary system that is underway, it is obvious that The Great Reset has been underway for years, regardless of what is said or desired from Davos.

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.

People who celebrate Valentine’s Day spend an average of 80€. Is it possible to celebrate it with romantic but surprising gifts that do not lose value? That’s what Càrol Rafales, from the 11Onze product team, and Gemma Vallet, director of 11Onze District talk about in a new episode of Territori 17 on Ràdio Cardedeu.

The most common gifts for Valentine’s Day are, according to Gemma Vallet, “chocolates, flowers and jewelry. This year we foresee an increase in jewelry sales”. Valentine’s Day is a celebration of Catholic origin but intensely amplified from the United States. It is the first big sales day after the Christmas holidays and causes each lover to spend an average of 200 euros, or 24 billion dollars in the United States.

In our country, spending is much more modest, around 80€, and is spent mainly on experiences. Now, however, inflation bites off part of the amount and “with the same money we buy fewer things,” says Càrol Rafales. In this environment Rafales, from 11Onze’s product team, adds that “we must be very responsible with our purchases. For this reason, perhaps instead of jewelry a good option is to buy gold pieces, which retain their value and over time allow us to recover it. As Rafales explains in Territori 17: “you can keep an ingot or a coin, and if in the future you have a need, you can recover that value or even make a profit”.

Is it unromantic?

Is it less romantic to give coins or a gold bar than to give jewelry? “It depends,” says Rafales “maybe in a few years you can resell the gold and with the proceeds make the couple’s trip that they can’t afford now.” Gold, is a long-term relationship and is therefore a good way to invest in the couple’s relationship.

If you want to buy gold coins from 220€, you can fill out this form. In 11Onze we celebrate the Amor amb Or.

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.

World gold demand increased by 18% in 2022 to 4,741 tonnes, the highest in more than a decade. Huge central bank purchases of gold were instrumental in boosting annual demand to near-record levels.

Gold demand, excluding OTC markets, reached 4,741 tonnes in 2022, an increase of 18% over 2021 and almost the same amount as in 2011, a year of record demand. 

The solid annual increase was driven by extraordinary central bank demand, the highest in 55 years, and a busy fourth quarter despite rising prices. This is according to a World Gold Council report on gold trading through 2022.

Central banks’ gold rush

In the second half of the year, central banks hoarded gold at a frenetic pace. Some analysts attribute this gold rush to a desire to diversify reserves and reduce dependence on the dollar. The more than 800 tonnes acquired since July brought annual demand in this sector to 1,136 tonnes.

This is a 55-year high and more than double the 450 tonnes in 2021. Nor was the price increase an obstacle to demand soaring in the last quarter to 417 tonnes.

These data again highlight the change in the policy of central banks, particularly those in Europe, from what they did in the 1990s and 2000s when they typically sold hundreds of tonnes a year. With the financial crisis of 2008-09, European banks stopped selling and a growing number of emerging economies have shifted to significant purchases.

Central banks such as those of Turkey, China, Egypt and Qatar reported buying gold last year, although the World Gold Council warns that about two-thirds of the gold bought was not publicly reported. In fact, only a quarter of central bank purchases in the fourth quarter were reported to the IMF.

Reported purchases in 2022 were led by Turkey, with almost 400 tonnes. Russia was among the central banks that did not regularly publish information on changes in their gold reserves.

Less jewellery, more investment

As usual, consumption of gold for jewellery was the largest volume, at 2,086 tonnes, although it fell by 3 % from the previous year. Much of this decline in demand occurred in the fourth quarter, due to the rise in the price of gold.

The price increase also affected the demand for gold in the technology sector, which was further weighed down by the deterioration in the global economic environment. The sharp fall in the fourth quarter led to an annual decline of 7 % to 309 tonnes. 

Meanwhile, investment demand reached 1,107 tonnes, 10 % higher than a year earlier. Demand for gold bullion and coins stood at 1,217 tonnes, 2% higher than in 2021, although the fall in gold ETF holdings (-110 tonnes) must be deducted from this amount. It is clear that high inflation encouraged purchases by retail investors.

Annual gold demand

Price rebound

2022 saw a record annual average gold price in the London Bullion Market Association’s Gold Price PM of $1,800 per ounce. The gold price also ended the year with a marginal gain, despite downward pressure from the strong US dollar and rising interest rates.

Although the average price in the fourth quarter was slightly lower both quarter-on-quarter and year-on-year, the strong rebound in November was followed by a continued recovery in the final weeks of the year.

Gold prices had fallen from their all-time high in March, when they reached over $2,000 per troy ounce, to just over $1,600 in the penultimate month of the year, as rising interest rates triggered selling by some investment funds. However, demand from central banks and retail investors halted the decline and set the stage for a strong rally.

Indeed, buoyant retail investment drove bullion and coin demand in 2022 to the highest level in nine years. Strong growth in Europe, Turkey and the Middle East offset the sharp slowdown in China, where demand was affected by the COVID-19 crisis. 

Supply is also growing

In 2022, the gold supply increased by 2 % to 4,755 tonnes. This ended two years of successive declines, thanks to modest increases in all segments. 

Mining production accounted for three quarters of the total, reaching 3,612 tonnes. This is the highest amount in the last four years after a growth of 1 % compared to 2021. Recycling supply saw only marginal gains in 2022 despite strong local currency price increases in many markets.

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.

In February 2022, we launched Preciosos 11Onze to offer members of our community the opportunity to buy gold to protect themselves against inflation. One year later, the evolution of the gold price proves why this precious metal is the ultimate safe-haven asset when it comes to securing our savings.

Although 2022 was presented as the year to consolidate the economic recovery, the disruption of the supply chain, the rise in the price of raw materials, the debt crisis and the international geopolitical situation ensured an inflationary context that would reduce the purchasing power of many families.

Faced with this scenario, at 11Onze we advised diversifying savings, converting money into assets that would not lose value. It was clear to us that buying gold was one of the few resources people had to safeguard their money. Thus, with the launch of Preciosos 11Onze we provided our community with the best option to protect their savings.

The loss of credibility of the international monetary system triggered a surge in demand for physical gold at major mints around the world. Not only were central banks buying gold to secure their capital reserves in the face of economic uncertainty, but small investors were also buying large amounts of gold to protect their wealth. This has led some gold dealers to deplete stocks of coins and bullion, extending delivery times when new orders are placed.

The antidote to inflation

One year on, rising prices, together with the loss of the real value of the currency, have led to a large reduction in the monetary wealth of the population, who have seen their savings vanish without even leaving the bank. Even so, the upward trend in the price of gold confirms our forecasts.

While year-on-year inflation in Spain in 2022 was 8.4%, Preciosos 11Onze gold has risen by 10.25%. From €1,599 per ounce of gold on 1 February 2022, it has risen to €1,762.86 today. Or in other words, the strong performance of the gold price has counterbalanced the currency stress caused by the loss of value of the euro.

This means that if we had left €10,000 in the bank, these savings would have lost 8.4% of their value, and would be worth €9,160 today. Whereas if we had invested them by buying gold, their current value in gold would have increased by 10.25% to €11,025.

Widespread economic slowdown

According to a report published by the World Bank, global growth in 2023 is expected to slow for the second year in a row and experience its third-weakest pace in almost three decades. This sharp slowdown in growth will be broad-based, stagnating at 1.7% in 2023, and improving slightly to 2.7% over the course of 2024.

It also predicts that investment in emerging markets and developing economies will remain below the average of the past two decades. It points to monetary policies and tight global financial conditions as one of the main causes of the slowdown in growth.

Although economic analysts expect Spain to avoid recession, GDP growth will fall back to 1% in 2023, mainly because most households no longer have a savings cushion to sustain their consumption spending. However, this trend is expected to change in 2024, thanks to the global economic upturn.

In any case, the almost zero growth forecast for the eurozone economy as a whole, and the recession that some of the main exporting countries, such as Germany, will experience, lead experts to agree that the demand for gold will continue to rise in 2023. Perhaps this is why Forbes magazine has published a report explaining why, even today, owning gold is better than owning money.

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.

The VAT reduction on basic foodstuffs is controversial because of the risk that it will have a very limited impact on consumers’ pockets and end up widening the commercial margins of distribution chains. Given the precarious situation of many families, some experts believe it would be preferable to extend direct aid.

Faced with the rising cost of the shopping basket, one of the Spanish government’s latest decisions in 2022 was to reduce VAT on a large proportion of staple foods over the next few months.

The measure provides for the abolition of this tax on a series of basic products to which the “super-reduced” rate of 4% was applied: bread, bread flour, milk, cheese and eggs, as well as fruit, vegetables, pulses, tubers and cereals. VAT on pasta and olive and seed oils is also reduced from 10% to 5%.

These tax cuts are expected to remain in force until 30 June, although if the year-on-year rate of core inflation (excluding energy and unprocessed food) in March is below 5.5%, they will end on 1 May.

A controversial measure

Theoretically the initiative should serve to alleviate the economy of many families, especially those on low incomes, but there are critical voices that question both its scope and its effectiveness.

The Organisation of Consumers and Users (OCU) considers this reduction to be insufficient. According to this organisation, it should have included “other foods that are also necessary, such as fresh meat or fish”, which will maintain the 10% VAT rate. In addition, the OCU calls for this measure to be applied above all to foods with “a healthier nutritional profile”, such as wholemeal bread.

For its part, the consumer organisation Facua reported to the National Markets and Competition Commission (CNMC) that seven distribution chains had not correctly passed on the VAT reduction in the first week of application. The percentage of irregularities was particularly high in Dia (17%), Carrefour (10%) and Eroski (9%).

More profits for retail chains?

Although the government’s decree-law obliges the tax reduction to be passed on to consumers, one of the great fears is that the distribution chains will take advantage of the VAT reduction to increase their profit margins.

It should be borne in mind that the year-on-year CPI for food stood at 15.3% in November, well above the general CPI. Moreover, December is usually a month when food prices tend to rebound. Therefore, the natural drop in prices that many foodstuffs experience every year in January could be used to justify the application of the VAT reduction.

Faced with this possibility, both Facua and the OCU have called for more controls to avoid non-compliance. In this regard, Nadia Calviño, First Vice-President and Minister for Economic Affairs and Digital Transformation, has warned that the CNMC will ensure the application of the reduction. However, to date it has not been specified how this control will be carried out, nor the possible sanctions.

Little proven effectiveness

The tax technicians’ union, Gestha, considers this VAT rebate to be “ineffective” in the fight against inflation. According to its calculations, the impact on the price of the shopping basket will be hardly noticeable: the reduction of VAT from 4 % to 0 % will save on average 3.85 euros for every 100 euros of purchase, while the reduction from 10 % to 5 % on oil will mean a saving of 1.36 euros for every 25 euros of purchase of this product.

Members of the Catalan Association of Economists also see these types of measures as ineffective in combating inflation, as shown in the Association’s autumn Economic Situation survey. Only 28% of its members rate tax measures aimed at companies and families, such as the reduction in VAT on foodstuffs, positively. Temporary taxes on energy companies (60%), large fortunes (59%) and banks (54%) are much better viewed.

On the other hand, some experts point out that it would have been preferable to use the 661 million euros that the VAT reduction on food will cost to extend the 200 euro cheque that the Spanish government will grant to low-income families. Around eight million people with incomes of up to 27,000 euros will be able to benefit from this direct aid to compensate for the increase in prices.

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Today is the deadline to make a purchase of the gold coins that 11Onze sells to offer as gifts, if you want to receive them by Epiphany. Don’t think twice and place your order, so they will arrive in time!

The gold coins that 11Onze sells since 1 December to be offered as gifts have become the star present of this Christmas season. The stock of Krugerrand 2020 coins was sold out in ten days, but you can still buy Krugerrand 2022 and Britannia coins.

We would like to remind you that every customer who places an order receives a gold coin or coins with a Christmas card and a golden voucher accrediting the purchase. The voucher is personalised with the value of the purchase, the name of the buyer and the person to whom the gift is given. Delivery is free for 11Onze customers with an El Canut account, and costs €9.99 for all other buyers.

If you want to give one of these gold coins as a gift for tomorrow’s future, and you want it to arrive by Epiphany, you have to confirm it today so that the package arrives on time. In the event that we are out of stock, orders placed on 29th December will receive the voucher with the Epiphany postcard, and the coin as soon as the stock is replenished. So, if you would like to place an order, please fill in this form and an 11Onze agent will get in touch with you.

Up to now, with Preciosos 11Onze, it has been possible to purchase gold bullion. From now on, we also offer the option of buying Krugerrand and Britannia gold coins. Gift gold, for tomorrow’s future.

Customers have been receiving our gold coin gifts for days already. But what do the customers receive at home? We show you the unboxing video by one of the buyers.

King Melchior brought a small chest of gold to Bethlehem. This precious metal symbolised purity, as it could not be corrupted or altered, which is why its value was very precious and lasted over time. Gaspar and Balthasar carried an aromatic resin and a balm. If you don’t fancy aromatic cosmetics, 11Onze offers you the opportunity to give the best of these gifts yourself. For the people you care about, for tomorrow’s future, gold!

What you will receive at home

Buyers will receive an envelope containing their choice of gold coins, Krugerrand or Britannia, an exclusive Christmas card and a golden voucher to show for their gold purchase. The voucher is personalised with the value of the order, the name of the buyer and the person for whom the purchase was made. Shipping is free for 11Onze members with an El Canut account, but costs €9.99 for all other buyers.

The campaign runs from December 1st to January 6th, but we recommend ordering by December 29th if you want to receive the coins by Epiphany. In case of a shortage of coins in stock, orders placed by 29 December will receive the voucher with the postcard by Epiphany, and the coin as soon as the stock is replenished. If you would like to buy gold coins as a gift, please fill in this form and an agent will contact you.

Up to now, with Preciosos 11Onze, it has been possible to purchase gold bullion. From now on, we also offer the option of buying Krugerrand and Britannia gold coins. Gift gold, for tomorrow’s future.

If you want to give gold as a gift for tomorrow and you want to have it on a specific date, we list until when you can place the order so that it arrives on time.

The gold coins that 11Onze offers as a gift for tomorrow are becoming one of the star gifts of the holidays. As soon as the customer makes the purchase, everything is prepared and shipped so that it arrives as soon as possible. But there are holidays in between and specific dates when we all want to have the gifts ready. Therefore, we have listed the deadlines for the package to arrive on time.

During the holidays it is tradition to give money to the people we love. But considering the current economic context, if you want to give something that tomorrow will keep its value, the best option is to give gold. For this reason, 11Onze has launched the sale of gold coins, which arrive with a Christmas card and a personalized gold ticket certifying the purchase. You can request more information by filling out this form.

Up to now, with Preciosos 11Onze, it has been possible to purchase gold bullion. From now on, we also offer the option of buying Krugerrand and Britannia gold coins. Gift gold, for tomorrow’s future.

It’s a perfect gift for the holidays and that’s how the 11Onze community has understood it, which in a few days has sold out the stock of the popular South African coin. From now on, new customers will be able to buy Krugerrand 2022.

For tomorrow, gold. That it is much better than giving away bills of a fiat currency like the euro, punished by depreciation and inflation, is obvious to anyone who knows how gold reacts in adverse economic cycles.

For this reason, 11Onze launched the sale of gold coins to give as gifts. We did so on December 1, with the Christmas holidays in mind, accompanying the purchase with a postcard and a gold bill crediting the purchase. As a result, members of the 11Onze community have sold out of the Krugerrand 2020 coin stock in ten days. During this week, buyers will receive the coins at home, ready to give as holiday gifts.

Now 11Onze has a new stock of Krugerrand coins. In this case they are 2022 and cost 222€, so there is an increase of 2€. You can also continue to place orders for the Britannia coin. Requests can be made by filling out this form.

The Krugerrand coin is of South African origin and is one of the coins that attracts more gold investors. If you want to know its history you can do it by reading this article.

Take advantage of these days of Christmas shopping with 11Onze, for tomorrow, gold!

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.

11Onze is launching the sale of gold coins as gifts. Buyers will receive the coins, an exclusive Christmas postcard and a gold note as proof of purchase. Gold, for tomorrow’s future.

Christmas holidays are a time to think of others and wish them well. In many Catalan households, this wish translates into an envelope of money for tomorrow’s future. In other words, fathers, mothers, grandfathers or grandmothers are in the habit of giving money as a gift so that it will be helpful to their children or grandchildren in the future. But does this make sense right now? With rampant inflation, a depreciating euro and uncertainty about the future of fiat currencies, money does not seem as valuable or as secure a gift as it did a few years ago.

For this reason, at 11Onze we thought that this role could be played by gold. Gold is the best option if you want to give a gift that will not lose value over time and can be converted into cash quickly. For tomorrow’s future, give gold as a gift.

Until now, with Preciosos 11Onze you could buy gold bullion for as little as €3,000. We now offer the option of buying gold coins, starting at €220. For 11Onze members with an El Canut account, shipping is free. For all other buyers, it costs €9.99.

How are they delivered?

If you want to buy gold coins as a gift, you have to fill in this form and an agent will contact you. Once everything is ready, you will pay directly by credit card. At home, you will receive a Christmas card and a personalised gold ticket that certifies your gold purchase. We will send it all to you, along with the coins. The campaign runs from 1 December to 6 January, but we recommend ordering as early as possible to ensure delivery of the coins during the festive season. In the event that the stock of coins runs out, the gold banknote will be sent first, followed by the coins.

The magic of Christmas

The 11Onze gold banknote connects directly with the fantasy created by Roald Dahl in the novel ‘Charlie and the chocolate factory‘. There, children who found the golden ticket inside the chocolate bar were invited to visit the chocolate factory of the bizarre Willy Wonka. The 11Onze gold ticket will not be used to take any children to meet the Oompa Loompa, but it will have a function that we believe is very valuable: it will ensure that they have gold for tomorrow’s future.

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.