Gold: Safe Investment in Uncertain Times
Interview with Justyna Slowikow, Head of Precious Metals Trading at Goldkontor Hamburg GmbH
Since time immemorial, gold has been the ultimate investment. The yellow metal is considered crisis-proof and stable in value, and is often the first choice for investors. Justyna Slowikow, Head of Precious Metals Trading at Goldkontor Hamburg GmbH, talks about current market developments and her goal to excite younger people about precious metals as an investment.
Wirtschaftsforum: Ms. Slowikow, Goldkontor Hamburg was founded in 2008. What have been important milestones in the 16 years since then?
Justyna Slowikow: Our founding came at a time when many banks were increasingly withdrawing from the precious metals business. This made it harder for many customers to directly acquire gold. Back then, online trading of physical precious metals was not yet well-established, as the buying and selling of precious metals were traditionally handled in person at local dealers or banks. However, it had become technically possible to display stock prices in real-time, making online sales more transparent and attractive because online retailers could now immediately respond to market fluctuations. Thanks to online banking and mail order, more customers could also be reached. Goldkontor, as an online precious metal dealer, thus entered a changing market environment at a very opportune time. The financial crisis of 2009 further boosted the demand for gold as a crisis-proof investment, which gave us further continuous growth. While our focus initially was solely on online trading, we later also opened a traditional retail store in Hamburg, allowing customers to acquire precious metals directly on-site. Today, we ship our products not only within Germany but across Europe and are very well established in a growing market.
Wirtschaftsforum: Crises are traditionally seen as good times to invest in gold and other precious metals. Would you also assess it that way given the current tense global situation?
Justyna Slowikow: Indeed, gold is considered a proven hedge against economic crises. However, there is no right time to invest in gold – rather, gold is a long-term investment for preserving value. Nevertheless, we are observing significant market movements: Since last October, gold prices have risen sharply again – even more so than in 2009 during the financial crisis. Factors such as the US elections and political uncertainty in Germany have further fueled demand. I think this shows that gold continues to be in strong demand as a secure investment in uncertain times.
Wirtschaftsforum: Which precious metal products from your portfolio are currently in the highest demand?
Justyna Slowikow: Indeed, gold remains the most sought-after precious metal, especially in the form of gold coins like the Krugerrand. But demand for gold bars is also high, particularly for 100-gram bars. Smaller gold bars are often purchased as valuable gifts. Silver ranks second among our best-selling precious metals. It is particularly attractive to buyers when offered with differential taxation, as this results in tax advantages – unlike gold, which is not subject to VAT, silver, platinum, and palladium are subject to VAT. This often makes gold the more attractive choice for investors.
Wirtschaftsforum: The precious metals trade is highly competitive today. Why do customers choose Goldkontor?
Justyna Slowikow: We can score with good value for money. Especially in trading Krugerrands, we are at the forefront. Moreover, customers can expect good, tailored advice from us – an additional service that our customers appreciate. For a long time, a special unique feature was our own safe deposit facility in our business premises. Other providers have followed suit, but for our customers, it remains a secure way to store their precious metals. In addition, we offer a precious metals account that will be fully digitized later this year. Customers will be able to monitor the development of their portfolio online in real time at any time.
Wirtschaftsforum: Looking towards the future: What are the plans for further development of the Goldkontor?
Justyna Slowikow: We would like to offer our products across Europe to an even greater extent than before. The Scandinavian market, in particular, holds a lot of potential: Many Danish customers travel to Hamburg to buy gold from us. We also regularly receive orders from the Benelux countries. We therefore want to further tap into these markets. In addition, we aim to attract younger people, including more women, to precious metals as a stable investment – so far, it has been more of a male domain.