Part 2/9:
Recent volatility in risk assets, exacerbated by geopolitical tensions and economic uncertainty, has prompted a flight to gold. In just two months, gold has gained nearly 12%, attracting investors who are looking to hedge against market downturns. However, the allure of investing in gold can quickly be overshadowed by logistical nightmares associated with owning physical gold.
Investing in physical gold often requires navigating high premiums, limited unit sizes, and uncomfortable custody solutions. An ounce of gold, which can retail for around $3,000, is often impractical for retail investors who prefer fractional investments. Moreover, the process of selling these assets can be tedious—requiring established buyers and potentially incurring losses.