Kvarn X Academy · Learning path

Gold

Gold has been a store of value for thousands of years, but it produces nothing. This path goes through where the return on commodities really comes from and how you can own them.

Gold
Silver
Gold ETC
Mining stocks
Futures
Energy

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Gold in three steps

First why people own gold and what moves its price, then what you actually own in different gold investments, and finally how to evaluate an investment.

01Why own gold, and what moves its price?Diversification, uncertainty and preserving value, plus four price drivers: the economy, risk, opportunity cost and momentum.10 min 02Physical gold, gold ETC or mining stock?Three ways to talk about investing in gold, and three very different kinds of ownership. Allocated vs. unallocated, how an ETC is structured, and operating leverage.11 min 03How to evaluate a gold investmentRisks, currency, costs, liquidity and the role in a portfolio. Includes currency and risk tools.8 min

Looking for other commodities? Oil, industrial metals and agricultural commodities, as well as how futures work, are covered in their own chapter: Commodities →

Starting point

A commodity doesn't produce anything. It either holds its value or it doesn't.

A share pays dividends and a bond pays interest. Gold pays neither. Its return comes solely from someone later being willing to pay more for it. This makes commodities a fundamentally different asset class.

Gold is not an investment for returns. It is an investment for the case where other things don't work.

Timeline · tap a year

A short history of gold: value that has lasted for millennia

The world changes, but the value of gold endures. When you want to protect your wealth in uncertain times, history is gold's strongest argument, and at the same time its best reminder that the rise is never smooth.

c. 1323 BC

Ancient Egypt

Tutankhamun was buried in a 110-kilo gold coffin together with other gold objects, such as his iconic mask. For the Egyptians, gold was not valuable only on earth. It promised a safe journey to the afterlife.

Gold as a measure of value

Notice the long flat stretch on the left: for millennia, the value of gold was measured by weight, not by return. The strong movement only began once currencies were unpegged from gold. The curve is illustrative, not a price scale.

Invest in gold with Kvarn X

With Kvarn X, you can invest in gold and other precious metals from the same app.

See the investment options Create an account

The physical gold in Kvarn X Gold is provided by Kvarn Metals Oy, which is not a company supervised by the Finnish Financial Supervisory Authority (FIN-FSA). Gold is not a regulated investment product or a bank deposit. Gold is not covered by the investor compensation scheme or the deposit guarantee scheme. This content is for information purposes only and should not be construed as investment advice or a recommendation. Investing always involves the risk of losing capital.