How does an institution sell gold on EONA?

Through its EONA account. Sales are priced on the international spot price minus a discount, with a 1.00% commission, and proceeds are paid to the institution’s verified bank account.

Is gold still effective if multiple markets collapse simultaneously?

Not always. In some past downturns gold held up well; in others it fell alongside other assets, at least for a time. There is no guarantee of how it will behave.

Can gold protect against inflation and currency debasement?

Over some long periods, such as the 1970s, gold has kept pace with or beaten inflation. Over other periods it has not. It is not a guaranteed hedge.

How is allocated gold at EONA held?

Your holding is recorded against specific bar serial numbers, and your metal is recorded separately from EONA’s own assets. It is stored with Loomis in Dubai; the vault operator, Loomis, maintains insurance under its own policy.

Gold and the “Safe Haven” Idea

During geopolitical instability, recessions and banking stress, gold has often held up well. Unlike a paper currency, it isn’t issued by a central bank and can’t be created by policy decisions. That is one reason central banks themselves hold over 35,000 tonnes of it (World Gold Council, 2024).

In 2008, gold rose nearly 5% over the year while the S&P 500 fell over 38%. During the COVID-19 shock in 2020, gold rose above $2,000/oz for the first time. But gold also fell sharply at points during both episodes, and it has had long periods of falling prices — it is not risk-free.

Why Gold Is Described as a “Safe Haven”

The label is used because gold has several characteristics that other assets lack. None of them guarantee its value:

1. Low Correlation to Risk Assets

Gold has historically shown low correlation to equities and credit instruments over long periods. That relationship changes over time — gold doesn’t always rise when other assets fall.

2. Intrinsic Value

Unlike a bond or a deposit, physical gold is not someone else’s promise to pay. It’s a real asset with universal recognition, industrial demand and a long monetary history. Its price, however, can still fall.

3. Liquidity

Gold trades in deep global markets. With EONA, you can sell your metal back to EONA at the price shown on the platform, with proceeds paid to your verified bank account.

4. Durability and Portability

Gold doesn’t degrade, expire or require servicing, and it stores substantial value in a small space. With EONA, your holding is recorded against specific bars stored with Loomis in Dubai.

Gold in Institutional Thinking

Some institutions include real assets like gold alongside equities and bonds. How much, if any, is a decision for each institution and its advisers; gold produces no income and its price can be volatile.

Interest in gold tends to rise during periods of heavy monetary and fiscal intervention. Past performance is not a reliable guide to the future.

How EONA Works

With EONA, institutions can buy allocated physical gold stored with Loomis in Dubai, recorded against specific bars. Prices are based on the international spot price plus a premium, with a commission (see our Fees & Spread page). EONA sells on an execution-only basis and does not give investment advice.

Common questions

Gold has no issuer, so there is no borrower who could fail to repay. But it pays no interest, and unlike a bond held to maturity, there is no fixed amount you get back — its price can fall.