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Guide to Gold

Why Gold Stands the Test of Time

Gold has a long history as a store of value. This article looks at its record during inflation and downturns — including the periods when it did not hold up.

Inflation reduces what paper money can buy. Over the past century, the US dollar has lost over 95% of its purchasing power. Over the same long period, gold has broadly kept its value in real terms — but with long stretches of decline along the way.

Real Asset, Not a Paper Promise

Gold is tangible. It isn’t issued by a central bank and doesn’t rely on anyone’s solvency. That is why some people hold it alongside financial assets. When markets fall or central banks add stimulus, gold has sometimes moved the other way — but not always.

Gold and Inflation: A Historical Correlation

During the high-inflation 1970s, gold rose from $35 to over $800 per ounce by early 1980 — then fell by more than half over the following years. After the 2008 financial crisis, gold rose again, peaked in 2011, and then fell for several years. More recently, gold reached new highs during a period of post-COVID stimulus and inflation.

No asset is immune to volatility. Gold has held its value during some inflationary periods but not others, and past performance is not a reliable guide to the future.

How Allocated Gold Works

Recorded Ownership

With EONA, you don’t own a gold-backed promise or a pooled certificate. Your holding is recorded against specific bars with serial numbers, separately from EONA’s own assets.

Independent Storage

EONA stores your gold with Loomis, an independent vault operator, in Dubai. Zurich and Singapore are planned locations (coming soon). Vault stock is subject to independent checks, and you can see your holdings in your account.

A Physical Asset

Unlike inflation-linked bonds, gold isn’t tied to an inflation index, and it pays no income. Its value depends on the market price, which can fall.

Common questions

  • Not always. Gold has kept pace with or beaten inflation over some periods, such as the 1970s, but has fallen in real terms over others. It is not a guaranteed hedge.

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