Why Institutions Look at Gold
Diversified holdings can still be exposed to systemic risks. Correlations between equities, bonds and real estate have risen in some crises. Gold has at times moved differently from risk assets during stress events, though not always.
Over the Global Financial Crisis (2008) and the COVID-19 shock (2020), gold ended higher while many asset classes fell — although it also fell sharply at points in both. Past performance is not a reliable guide to the future.
Physical Gold vs. Financial Derivatives
ETFs and gold futures give exposure to the gold price but depend on an issuer, clearing house or counterparty. Allocated gold is recorded against specific physical bars.
With allocated gold through EONA, institutions have:
- Recorded ownership of specific bars, separate from EONA’s own assets
- A named, independent vault operator (Loomis, Dubai)
- A clear way to sell— back to EONA at the price shown on the platform, with proceeds paid to your verified bank account
This can matter for organisations with conservative policies. But gold’s price can fall, so holding it does not remove market risk — it adds a different one.
Gold in Allocation Frameworks
Gold is sometimes included in allocation frameworks such as risk-parity or barbell approaches, where it is treated as a diversifying asset. How it behaves within such frameworks depends on market conditions, and its volatility can be significant.
Gold has no issuer and so no credit risk, but it pays no income.
How EONA Works for Institutions
EONA gives institutions a straightforward way to hold and sell allocated gold, with clarity on:
- Vault location (Loomis, Dubai; Zurich and Singapore are planned, coming soon)
- Pricing based on the international spot price plus a premium, with a commission
- Ownership records showing the bars your holding is recorded against
- Selling back to EONA, with proceeds paid to your verified bank account
EONA sells on an execution-only basis and does not give investment or risk-management advice.