How much gold should an institution hold?

There is no single answer, and EONA does not give investment advice. Any decision should reflect your organisation’s own policies and professional advice, and recognise that gold’s price can fall.

Is allocated gold more complex to manage than ETFs or derivatives?

It is straightforward with EONA: you have allocated ownership recorded against specific bars, and you manage it online. Unlike ETFs, you are not holding units in a fund. As with any asset, the value can fall.

Does gold provide protection in a liquidity crunch?

Gold is widely traded and not tied to any single bank or government, and it has often remained in demand during past crises. But prices can move sharply in stressed markets, and there is no guarantee of the price you will achieve.

Can a gold reserve help with investor relations?

Some organisations see it as a sign of conservative reserve management. Whether it helps in a particular case depends on the stakeholders involved; EONA does not advise on this.

How does EONA ensure regulatory alignment for institutional clients?

EONA is registered as a Dealer in Precious Metals and Stones with the UAE Ministry of Economy and Tourism for AML purposes. We carry out KYC/AML onboarding for corporate and family office clients and provide records of holdings and transactions.

Enhancing Reserves

Gold as a Reserve Component

In an era of geopolitical tension and currency volatility, some organisations look beyond cash and short-term bonds for part of their reserves. Allocated gold is a physical asset that is not a liability of any bank or government — but it pays no interest and its price can fall.

Central banks and other large holders have been adding to their gold reserves. According to the World Gold Council, central banks added over 1,000 tonnes of gold in 2023 — one of the highest annual totals on record. This shows gold’s continuing role in official reserves, though it says nothing certain about future prices.

Why Organisations Consider Gold

1. Currency Diversification

Historically, gold has often held its value when national currencies weakened. It does not always do so, and its price in any currency can fall.

2. No Issuer Credit Risk

Unlike cash held in bank accounts or bonds, physical gold is a non-counterparty asset. Its value doesn't depend on an issuer’s solvency. With EONA, you can sell your metal back to EONA, with proceeds paid to your verified bank account.

3. Governance and Perception

Some organisations see a gold holding as part of a diversified reserve policy. Whether it is appropriate is a decision for each board and its advisers.

4. Balance Sheet Considerations

Gold can be valued at market prices, which gives visibility but also means reported values will move. It generates no income; its role in diversification and risk management must be weighed against that and against price volatility.

Implementation Considerations

Storage and Audit Standards

Institutions should make sure their gold is allocated, recorded against specific bars and independently checked. With EONA, holdings are recorded against specific bar serial numbers and stored with Loomis in Dubai. The vault operator, Loomis, maintains insurance under its own policy.

Accounting Treatment

Gold may be recorded as a current or non-current asset depending on intent (liquidity buffer vs. strategic reserve). IFRS and local GAAP standards allow fair-value or historical-cost reporting, making it essential to align with your CFO and auditors on classification.

Storage and Exit

All metal is stored with Loomis in Dubai; Zurich and Singapore are planned locations (coming soon). EONA does not currently offer delivery or collection of physical metal — you realise value by selling back to EONA.