Gold as a sustainable investment

Ronald Stöferle writes in an article for "the market" of the NZZ why the characterisation of gold as an environmentally harmful metal could not be further from the truth.

Gold and sustainability

A simple look at a mining company’s ESG rating is deceptive. After all, gold’s excellent chemical properties make it a very sustainable precious metal. You just have to think a little more long-term. Gold is always recycled and due to the fact that it does not oxidise, this is not very difficult. Gold never loses its shine and can therefore be passed on from generation to generation. An analysis of the emissions of the mining companies also shows that the CO2 emissions of gold are extremely low compared to other metals. Any emissions that are thus generated during the one-off extraction can thus be spread over many decades, if not centuries, and are practically negligible.

 

A sustainable currency?

The same properties that gave gold its unique position in history and society also make it a formidable currency. Excellent malleability and durability have always made it one of the most important means of payment. Moreover, gold is also resistant to inflation. The total annual amount increases by only a tiny amount. Thus, there is generally no reason to turn one’s back on gold for reasons of sustainability. An allocation to gold thus also pays off for the sustainably oriented investor.

 

Gold – The Green Investment Metal?