OTS - GSB Gold Standard Banking, Josip Heit and the value of Gold (part 1)
2020. August 06. 10:02
Hamburg, 6 August, 2020 (APA/OTS) - The DAX (abbreviation for
Deutscher Aktienindex, it measures the performance of the 30
largest (in terms of free float market capitalization) most liquid
companies in the German stock market) and is in the middle of the
week (Wednesday, August 5, 2020), within striking distance of a new
record high, especially gold, probably the most beautiful precious
metal, which has been used for thousands of years for ritual
objects and jewelry and since the 6th century B.C. as a means of
payment, is testing out completely new peak regions in terms of
value.??On Wednesday morning, the price reached a new high of 2034
dollars, after the quotation had only cracked the 2000 dollar mark
yesterday evening (04.08.2020). Since the beginning of the year,
the precious metal has thus gained about a third in value.
The environment of low interest rates, rising debt, fears of
recession and a continuing depreciation of the US dollar could
hardly be better at present, states Josip Heit, as Chairman of the
Board of Directors of GSB Gold Standard Banking Corporation AG,
based in Hamburg.
Gold, like silver, is considered a crisis-proof and stable
investment. In view of unprecedented rescue measures by central
banks, confidence in common fiat currencies is declining in this
context. Fiat money from the Latin word "fiat", however, has
nothing to do with the well-known automobile company, but is an
object without intrinsic value that serves as a medium of exchange.
The opposite of fiat money is commodity money, here for example
tobacco, rice, or even gold and silver, which besides the external
exchange value also have an internal value, this completely
independent of governmental decrees.
Only recently, the heads of government of the European Union
(EU) agreed on a 750 billion euro package of corona aid, by 2027,
an unimaginable 1.8 trillion euros are to be distributed at the
taxpayers' expense, whereby one must remember that 1000 billion
(1,000,000,000,000) is one trillion, i.e. a number with 12 (twelve)
zeros, here it is almost double.
According to Josip Heit and thus the GSB Gold Standard Banking
Corporation AG, the currently weak US dollar is playing into the
cards for gold as well as the falling interest rates on the bond
market, especially in view of the numerous recent increases in
government bonds with negative yields, which for the first time
since March 2020 have risen to more than 13 (thirteen) trillion US
dollars.
In the medium term, according to an analysis by Gold Standard
Banking, the focus should therefore shift more towards inflation.
So far, inflation has not yet started - due to weak demand -
although the central banks are already taking massive
countermeasures.
In Josip Heit's view, a proverbial "look in the economic
rear-view mirror" shows that periods of weak price development and
deflation were followed by phases of highest inflation.
The only open question is whether the global economy will
recover from the corona shock in the foreseeable future as hoped.
In the very long term, therefore, gold should maintain its strength
and probably rise rapidly above the record high of USD 1,921 in
2011.
The currently broader base of investors (buyers) interested in
gold also means that many investors are betting on gold, the lower
the real yields are and the weaker the world's leading currency,
the US dollar, the more attractive gold is. If you look at very
long-term periods and take into account the change in price levels,
gold has always maintained and increased its value, which is
something no currency can claim at present.
The demand for gold bars and gold coins has even doubled in the
first seven months of this year 2020, according to an evaluation by
GSB Gold Standard Banking Corporation AG, compared to the same
period last year. This is reported by the World Gold Council, the
organisation of the gold mining industry, to a certain extent the
highest statistical authority of all gold investors.
In a transparent way of its economic activities, Josip Heit and
GSB Gold Standard Banking Corporation AG are taking this as their
starting point. Because if you buy gold in small denominations on
the web (Internet) or via app (abbreviation for application, i.e.
application software for mobile devices), you could, for example,
use a credit card company, which, however, can be reimbursed for
each individual transaction.
A system created by GSB Gold Standard Banking Corporation AG,
based on a block chain (a continuously expandable list of data
records, called blocks, which are linked together by cryptographic
methods), makes the payment process much more secure and this
directly, without transaction costs between seller and buyer.
With this revolutionary idea, Josip Heit and GSB Gold Standard
Banking Corporation AG will make the crypto financial market more
secure and revolutionize it in many ways. GSB Gold Standard Banking
Corporation AG is committed to a transparent financial market.
Following this credo, Josip Heit has long been calling for
sustainable regulation.
At the turn of the year 2019/2020, the German Federal
Government has put as first regulatory measure - block chain and
token - under supervision of the Federal Financial Supervisory
Authority (BaFin). As a German public and federal institution with
legal capacity, BaFin is subject to the legal and technical
supervision of the Federal Ministry of Finance. (continues)