In times of constant changes in financial markets and global upheavals, investors are increasingly turning to gold, which has been regarded as a stable store of value for millennia. This precious metal, which has outlasted numerous civilizations, wars, and economic crises, continues to hold its appeal for both individuals and nations.
To better understand why gold maintains such a strong place in modern portfolios, we spoke with Bojan Pravica, an investment expert, who shed light on what makes gold so unique and why its value is universal.
Journalist: Hello, Bojan, thank you for being with us. Gold has a long and rich history as a precious metal. What, in your opinion, contributes to the fact that gold is still considered one of the safest forms of store of value today?
Bojan Pravica: Hello, thank you for the invitation. Gold is unique because it has been recognized as a store of value for millennia. From ancient civilizations to the present day, gold represents something enduring and stable. One of the key characteristics of gold is its rarity, which gives it inherent value. Additionally, gold has a unique chemical stability—it doesn’t rust, deteriorate, and remains unchanged over time. This sets it apart from many other commodities and investments.
The Historical Strength of Gold: From Ancient Civilizations to the Present Day
Journalist: Gold is often referred to as the “universal currency.” How does this impact its value on a global scale?
Bojan Pravica: You’re right, gold is universally recognized everywhere in the world. No matter where you are, gold will always have value because it does not rely on any government or economic system. This is especially important during times of political instability or currency crises. Gold retains its value when other currencies lose theirs, making it an excellent hedge against asset risk. Its globally recognized value means you can trade it or use it as collateral anywhere in the world.
Journalist: Despite all these facts, I’m curious what you would personally say to those who believe gold is simply a relic of the past?
Bojan Pravica: Gold is much more than just a relic of the past. Of course, gold has a long history, but that’s not a reason to underestimate it. On the contrary—this history gives gold a deeply established value. Moreover, gold is still one of the most reliable forms of wealth that is not dependent on digital systems or infrastructure. In the digital age, when many forms of wealth rely on technology, gold remains a physical, tangible investment that many are not willing to part with.
The Universal Value of Gold: What Sets Gold Apart from Other Investments?
Journalist: What should investors consider when thinking about gold as part of their portfolio?
Bojan Pravica: Investors must understand that gold is not an investment that will yield quick returns. It is a means of preserving value and reducing risk in a portfolio. Gold is often used as protection against inflation and financial crises. It’s also important for investors to properly balance their portfolios so that gold is not overly exposed, but at the same time provides enough stability. With the right amount of gold in a portfolio, investors can keep their wealth safe over the long term.
Journalist: Gold is often seen as a safe haven, but do you think its role will remain unchanged in the future, given the growing popularity of digital investments like cryptocurrencies?
Bojan Pravica: That’s a very relevant question. Digital investments, especially cryptocurrencies, have seen tremendous growth in recent years and have become an intriguing alternative for many. However, cryptocurrencies are still quite volatile and are not as universally accepted or understood as gold. Gold has a thousand-year history of stability, which is something cryptocurrencies have yet to achieve. I believe digital investments will have their place in investors’ portfolios, but gold as a physical, tangible investment that is not reliant on any technological system will not lose its role. I believe that gold will continue to play a crucial role as a protective asset in the coming decades.
Gold remains one of the most valued and stable forms of wealth, enduring time and economic upheavals. As Bojan Pravica emphasized, gold, with its universal value and long history as a store of value, is an indispensable part of any serious investment strategy. Despite technological and digital changes, gold maintains its place as a safe haven in uncertain times.
"Gold is much more than just a relic of the past; its value is deeply rooted in history and recognized worldwide." — Bojan Pravica