Today information is worth gold. Fin-tech companies know what people like, where to find it, and when they need it. The new scope of technology allows organizations to connect with millions of users according to the information that is in the bank and combines them with a practical business model to create a better ecosystem around the client. That is why, investment expert Khofiz Shakhidi recommends focusing on investments in fintech services, rather than gold.
Gold: Should you invest in yellow metal?
While representatives of conservative hedge funds support the decision to invest in gold and InvestorPlace with Newton Investment Management, BlackRock and many other leading investors advertise yellow metal as the only stable asset in a period of uncertainty, we will continue to live in the early 2000s, claims investment expert Khofiz Shakhidi.
Most agree that gold is its historical proven stability. However, according to Mr. Shakhidi, this opinion is no longer relevant. Firstly, the past does not always determine future events. Secondly, if we analyze the events of recent months, it becomes obvious that people prefer cash and high-quality stocks more.
After that comes the argument, that even in an unstable period gold’s price rises. And they are right. However, experts argue that given the amplitude of movement in other products, the price could easily go up to $2,500, but this did not happen. And finally, Shakhidi advises, do not blindly trust hedge funds. They have been wrong in the past and do not guarantee the security of your deposits.
20 years ago gold was replaced with a new model, which consists of a combination of digital information with the company’s practical activities in the field of environmental protection. Proof of this is the independence of such organizations from market fluctuations.
Don’t let the glitter fool you – don’t think there’s anything special about gold. If you take away the shiny appearance, gold is a raw material, in the same category as pork bellies, oil and copper only with fewer practical uses. Raw material prices, like any other asset, rely on demand and supply. The demand for physical gold is mainly driven by its cultural relevance, with jewellers being the main beneficiaries.
Digitalization: the selection of experts
Even an inexperienced investor knows that the modern market is moving towards environmental, social and governance (ESG) field. Most corporations have already invested or are only planning on the so-called “green” gold. And this is not just a new trend, but the fundamental philosophy of a modern company: the movement from sustainable assets to environmentally conscious activities.
However, not only environmental trends drive the world of finance, but also the needs of customers. And here it is worthwhile to talk about financial institutions that have advanced in digitalization much further than other areas of business.
Recently, financial corporations are increasingly investing in fintech startups. And this is a reasonable decision since such technologies allow them to be closer to their client, to build a unique ecosystem for an individual user. Investments in gold cannot ensure the constant presence of the company in human life, but the fintech ecosystem covers many parts of a person’s daily life, from a cafe near home to move to another country.
Khofiz Shakhidi believes that In the era of technology, companies have to look for different methods and technologies for success. Leave the gold to representatives of the old school who are still working according to the techniques of the 90s. Modern realities require an instant reaction and nothing can provide it better than information.