After analyzing the trend of recent years, experts came to the conclusion that gold, as the main asset, is losing to more innovative investment – information. This asset is harder to get, it does not lie under the lock and it changes along with its price. But it characterizes the modern market as a whole. Where there is no room for conservative representatives of hedge funds, companies without philosophy and portfolio consisting only of gold.
In today’s article, Khofiz Shakhidi shares his knowledge on why modern corporations stop investing in gold, what financial institutions expect in the future, and what is “green” gold.
Gold: What the experts say
If we analyze the investment market of recent years, it becomes obvious that traditionally the market invests in gold. Historically, gold is associated as a standard of stability even in the most crisis times. And although recently this statement has been questioned, many see the salvation of their portfolio in the yellow metal, says Karandash news.
And according to experts, such a decision often becomes fatal. Of course, gold may be present in your portfolio, but your entire portfolio should not consist of it. Such methods are no longer relevant for 20 years. Today, the financial sector is increasingly turning to digital technologies, and the winner is the one who knows how to properly apply them in their services, as it does Shakhidi’s digital bank. The beginning of 2020 was also illustrative when the unstable situation reveals the true winner and it was not gold.
Also Khofiz Shakhidi recommends paying attention to environmental, social and management (ESG) areas, so-called “green” gold.
In combination with fintech services, this will allow you to build a modern company that will keep up with the market. More and more companies are using technology to create the entire digital infrastructure: their services do not end with the issuance of cards or bank accounts. And this is the only effective approach. For example, most of the investments made by the digital bank of Khofiz Shakhidi are other digital services that allow you to build a unique ecosystem around each client.
Modern financial companies should strive for a constant presence in human life. And here to the rescue come fintech investments, rather than the bright yellow metal.
A sustainable investment over time
If you want to keep pace with the market, then the best choice would be an investment in the environmental, social and management (ESG) areas. Companies are increasingly filtering for green projects. If they don’t, their future assets may be severely impaired, profitability may be very low, or they may lose with depreciation. It is relevant that companies that invest do not forget these issues, because it is currently one of the key factors in the long term.
The World Economic Forum indicated that within the first five probable risks that the planet has, three are related to environmental factors. More precisely still, the first three are “extreme weather events”, “failure to mitigate and adapt to climate change” and “natural disasters”.
Faced with this reality, in Europe and the United States for years there have been various investment alternatives that bet on sustainable profitability in the long term, focusing not only on the economic performance of companies but also on their environmental, social and governance impacts, through projects compatible with the current context marked by social changes, climate change, greater connectivity and digitization.
Mr Shakhidi is clear in summing up this paradigm shift: “Many of the projects that were traditional and with a very attractive return are currently bread for today and hunger for tomorrow”.