Karatbars would be a good investment

Interview with Karatbars: Gold price continues to rise in the long term

It is an open secret that all types of investors are increasingly investing in gold in uncertain economic times. The recent price explosion in the gold price did not come as a surprise, however, as the Corona crisis also contributed to it. At its peak, the price climbed to over € 1540 on February 20, 2020. A similar picture emerged when looking at the US dollar exchange rate. In the long term, industry insiders and companies operating in this market environment such as Karatbars assume that the positive trend will continue. More details in the interview.

Good afternoon, Mr. Seiz. Please introduce yourself briefly to our readers.

Karatbars: Good day! My name is Harald Seiz and I am the founder and managing director of the company Karatbars from Stuttgart, which was founded in 2011. We are an internationally active gold trader who pursues the vision of not only making investments in gold possible for those who can already afford it, but also of making this market accessible to everyone. The yellow precious metal has fascinated me personally from childhood, so it quickly became clear to me that I would later try to start a business with this dazzling raw material that would change the world.

What specific products do you have in your portfolio?

Karatbars: We started with two products back then. On the one hand there are the so-called Gold Cards and on the other hand the CashGold notes. The latter look similar to classic banknotes, but have a wafer-thin gold bar woven into them that weighs 0.1 0.6 grams. The CashGold notes are primarily intended to function wherever they are accepted. At the same time, larger quantities can also serve as a system. The whole thing is only slightly different with the gold cards. However, they have somewhat heavier gold bars that weigh one to five grams.

Recently, the price of gold has risen enormously in terms of price. How do you explain this phenomenon?

Karatbars: At Karatbars, we are of the opinion that not just one reason can be blamed for this, but that countless aspects have led to the gold price reaching a new all-time high at € 1,540 per ounce. On the one hand, we hold the disastrous development of the interest rate level, which remains at an unprecedented low, responsible for the gold hype for consumers and investors. There are currently rumors that central banks around the world want to cut interest rates even further in the long term. In combination with the fact that a number of banks in this country are now even putting penalty interest on the savers' eye, it is understandable that alternatives are being sought. Shares and Co. have been a popular option up to now. Now, however, the coronavirus has also been added, which weakened many share prices due to the strained global economic situation. This in turn is causing the demand for non-currency commodities such as gold to skyrocket.

Nevertheless, the gold price has fallen slightly again within a week. What is the explanation for this?

Karatbars: We at Karatbars were admittedly a little surprised. We would not have been surprised if the gold price had marched straight to $ 2,000. We now explain the whole thing in such a way that even many professional investors who had invested their capital in stocks had to carry out distress sales because of the falling prices. At the same time, they needed additional money in order to be able to maintain their CFD trading or leveraged trading, for example. Another factor is likely to be that many gold investors decided to liquidate their investments at the new high. Profit-taking traditionally always leads to prices correcting themselves a little downwards.

In other words, you are assuming that the prices will continue to show a positive trend over the long term?

Karatbars: Yes, in any case! The courses have corrected themselves slightly downwards, but are still in the green area. As a short-term goal, the chart is aiming for the mark of 1700 US dollars, because on March 4, it narrowly failed at this threshold with a quotation of 1683.65 US dollars. In our view, global economic figures will not recover for the foreseeable future as the coronavirus pandemic continues to spread rapidly. Some analysts argue that the recent slide in prices is simply due to an oversold of stocks. At Karatbars, we believe the most likely scenario is that share prices will not recover at all in the short term, but only in the long term and with great difficulty, if at all.

Finally, do you have a few tips for those who want to invest in gold themselves?

Karatbars: Yes, of course. Basically, we recommend anyone who wants to invest in gold to start with small, pieced amounts in order to get to know the dynamics of the market. Products such as our Gold Cards or CashGold notes and derivatives are particularly suitable for this. Now is a good time to invest in gold - people stand in long lines in front of gold shops for a reason. Investors should nevertheless only invest a small part of their available capital reserves in gold and ensure that their investment portfolio is diversified.
Mr. Seiz, thank you very much for the interview and we wish you continued success with Karatbars!

Author: editorial staff
Image source:
Gold bars © hamiltonleen @ https://pixabay.com

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2020-03-21