In the world of constant financial changes and uncertainty, investors turn to experienced professionals who can offer insights into the complexities of markets and shed light on the cloudy landscape of economic challenges.
Bojan Pravica, a successful entrepreneur in various financial service sectors, is one such individual. He has been leading one of the most successful companies in investing in precious metals for over 35 years – Elementum. Elementum has become synonymous with safe and transparent purchasing of investment gold and silver.
Mr. Pravica acts as a catalyst and founder of financial firms offering exclusive products in real estate, insurance, securities, investment funds, policy funds, and special offers of precious metals products.
In this interview, he reveals his deep insightful perspectives on contemporary financial challenges, sheds light on the pitfalls of traditional investments, and shares his wealth of experience on how and where to invest money for maximum returns.
Journalist: What do you think about precious metals in Slovenia? Is it better to invest in silver or gold?
Bojan Pravica: It’s not only important what I think about investing in precious metals in Slovenia. We need to look more broadly, globally, as foreign analysts also have some knowledge about this. When it comes to the quantity relationship between gold and silver, it’s crucial to know how much gold has been mined and how much is still available for storage. The silver-to-gold ratio is entirely different from that of gold. Silver is harder to store in large quantities as it’s frequently used in industry. There are approximately 1300 patents utilizing silver, and this number is growing. Silver can be used in various industries, including transportation and healthcare.
Silver possesses remarkable properties such as excellent electrical and thermal conductivity and light reflection. Because of these characteristics, it’s an indispensable metal in over 1300 patents, primarily in the industry. Unlike gold, which is mostly used in jewelry, silver finds wide applications. Due to European regulations, silver has become a substitute for lead in soldering, further increasing its consumption. Silver is present in various products, including coatings on special glasses and elsewhere. The annual silver production in 1900 was 337,000 tons, whereas in 2010, there were only 9000 tons available, representing a 97.5% reduction in stocks. This is not only due to the “just in time” policy reducing inventories but mainly because of limited natural silver resources.
In 1980, the price of an ounce of gold was $50. According to the current inflation calculation method, that price would mean an ounce of gold today should be worth $137. If we consider the inflation calculation method before 1980, it would mean an inflation of $400, which represents a 23-fold increase. The difference between 1980 and 2000 is significant, as in the 1980s we had 4 billion people, whereas today we have 7 billion.
In the eighties, we had a 50 percent planned economy, while today that figure is almost zero, unless we consider Cuba and North Korea. At that time, half of the world market was regulated, whereas now we have a 100 percent free market.
The number of potential buyers has increased from one billion to five billion. The amount of money has increased twentyfold. In the 1980s, there were also fewer patents for silver. Today there are 1300. Nevertheless, silver stocks are now smaller than ever before. This is significant because we believe that silver will experience greater growth than gold in the future. According to statistics from 2003, there was only enough silver left for 12 years at that time, after which the stocks could be depleted. Whether this will hold true will be shown in the future.
Journalist: If I understand correctly, in the past, investment in gold proved to be better than silver?
Bojan Pravica: I would like to draw your attention to a comparison if you look and wonder where it was worth investing. Sometimes you can have both, but you notice that gold grows more than silver. This is perfectly normal, as it’s similar to comparing funds or stocks. At the Olympics, the first today is not necessarily the first next time.
Although silver may occasionally be below the growth of the price of gold, when it explodes, it achieves extreme growth. I believe that history will repeat itself for the reasons mentioned above. Regardless of whether silver grows less than gold or more, we believe that a long-term investment in silver in physical form pays off. A positive fact about silver is its small supply, which is much smaller than that of gold. Increased diversity of use, newer patents, and positive ratings from international analysts are also factors to be expected from optimal investments. Price-wise, silver is probably more accessible to the majority of people than gold will ever be.
Journalist: What is more affordable in terms of price? Probably silver?
Bojan Pravica: As mentioned a little while ago, probably silver for most people. If we want to invest in precious metals, the investment process itself must be affordable, just as investing in commodities should be. We can invest, for example, through a fund if we don’t have a large amount of money available to build our own stock portfolio. The favorable purchase price depends on the quantity, and safe storage is also important, of course. In addition, investing in precious metals provides liquid protection against inflation, tax-free profits, and the possibility of payout in physical form, which is very important for those who want to ensure value in case money loses value.
For silver, a recommended favorable quantity for purchase is a 15-kilogram bar, as the price is most favorable compared to smaller quantities. It is worth noting that through this option, purchases can be made without VAT, with Elementum Internacional (via the portal). Secure storage in the EFSU-UNG is considered the safest investment in Europe, and assets are also insured by one of the largest insurers.
Storage in a safe country, protection against inflation, and tax-free capital gains are guaranteed by law. Investing in precious metals, whether gold or silver, allows for tax exemption even when profits are paid out. Although things may change in the future, this regulation currently applies.
Furthermore, there is the option of payout in physical form. It is worth mentioning the project of the longest and most expensive tunnel in the world, measuring 50 kilometers and connecting Italy to Europe via the Swiss Alps area called Saint Gotthard. This area also serves as a storage facility where a client can securely store their silver bars. Without customs duties and VAT, 100% safe. Each entry and payout is confirmed by an independent international auditor.
In the past, it was not monetary gold that prevailed, but silver. Many are unaware that the Chinese introduced the first paper money in the 11th century, with silver and gold serving as the basis for the value of paper money.
When it comes to investments themselves, it is advisable to consult with a competent wealth advisor. Would you agree that useful and interesting information is always welcome, especially if it is timely? The situation is not the same for everyone. Look at your own situation, analyze things based on your own case, and make an offer. Compare offers to see more easily if this is the right decision for you or not.
At Elementum, we regularly monitor global economic and political changes that can affect the prices of precious metals. We keep our clients informed about significant factors because awareness is crucial for making informed investment decisions. It is important to emphasize that investing involves more than just investing in physical precious metals.
Investing can also include stocks, funds, and combinations thereof. The information is extensive, so to facilitate further understanding of the market, we offer you at least one book to read, namely “The Silver Conspiracy” by Reinhard Deutsch.
As we all know, knowledge is power, and no one can steal that from you.
At this point, I would bid farewell with a quote from Mark Twain: “The man who does not read books has no advantage over the man who cannot read them!”
Bojan Pravica, an experienced entrepreneur in the field of financial services, has provided us with deep insights into investing in precious metals, with a focus on gold and silver, in this interview. Silver, with its diverse industrial use and limited supplies, seems like an attractive option for future returns.
Mr. Pravica highlighted that the history of investing in precious metals is evolving, and there may be periods when gold outperforms silver or vice versa. Despite potential fluctuations, he is convinced that physical investment in precious metals, whether in gold or silver, makes sense in the long run. The diversity of silver usage and positive analyst ratings indicate the potential growth of this precious metal in the future.
When investing in precious metals, regardless of the choice between gold and silver, professional advice is crucial.
Bojan Pravica emphasizes:
- The importance of situation analysis.
- The importance of comparing offers.
- The importance of monitoring global economic and political changes.
At Elementum, they advocate for raising awareness among clients about key factors influencing the prices of precious metals, as being informed is fundamental for making the right decisions in the world of investments.
He concluded with the thought that investing in precious metals goes beyond simply buying physical bars. This includes alternative forms such as stocks, funds, and their combinations. He also recommended a book: “The Silver Conspiracy” by Reinhard Deutsch, as an additional source of information for those who want to understand the complexities of investing in precious metals. Happy reading!
