Banco Sabadell and Amundi promote responsible investmentsMensuram Bonammeasures consistent with the faith for Catholic investorsMensuram Bonam. Economic investments consistent with the Catholic faithGold is a safe haven asset for investors because historically it has been used to preserve value during periods of economic instability and inflation.
In recent days, the Federal Reserve announced the end of its tight monetary policy, triggering a new bull run in gold and pushing prices to record highs above $2,600 per ounce.
On September 30, 2024, the price per ounce of gold closed at $2,630.
Mensuram bonam
The gold price trend suggests that demand may remain strong and make gold one of the best investment classes this year.
Given the current market situation, how can one invest in gold with regard to ethical investment, as indicated by the United Nations, or even more thoroughly by following the indications in the investment text? Mensuram Bonam of the Vatican?
As for the manufacturers' and jewelers' market, they have long since integrated ethical aspects into the value chain. In the financial markets, to enable investors to invest in gold with a high social and environmental impact, the focus is on transforming the technical assistance premium into a market premium, as is the case with the "Swiss Positive Gold" fund, whose performance has increased by 27% since the beginning of this year.
Swiss Positive Gold Fund
The Swiss Positive Gold Fund offers a unique opportunity to invest in traceable, artisanal physical gold while creating a positive social and environmental impact. The fund was launched by "de Pury Pictet Turrettini" in partnership with "MKS PAMP" and the "Pictet Group" in order to improve the sustainability of the gold market, with an ethical approach based on responsible gold production. The work carried out involves full traceability of the supply chain and treatment of the ore under controlled conditions.
This work carried out by "de Pury Pictet Turrettini" is in agreement with the "Final Document of the Synod for the Amazon", which quotes: "It is necessary to look for alternative economic models, more sustainable and respectful of nature and with a strong 'spiritual support' ".
Synod for the Amazon
As Thierry Zen Ruffinen, Senior Business Developer at De Pury Pictet, pointed out, the fund provides traceability and technical assistance at different stages of the gold value chain, starting with production. The "Final Document of the Synod for the Amazon" urges not to seriously damage life, but to seek alternative economic models, more sustainable, respectful of nature and with strong spiritual support.
Behind the undeniable value of gold, it is important to remember its less visible but equally crucial qualities: the burden of the mining industry falls largely on the people who work in the mines. These workers are men and women who often work in conditions of great hardship and danger, and both their welfare and working conditions are often overlooked. Miners face precarious working conditions and deserve recognition and support.
United Nations
The background Swiss Positive Goldwhich applies the United Nations "Principles for Responsible Investment (PRI)" (of which de Pury Pictet Turrettini was one of the first companies to sign them in 2008), uses a selection that opposes the brutal and cruel experiences of communities and individuals in the past.
Investors subscribing to the fund can contribute to improving the living and working conditions of miners and protecting the environment.
However, much remains to be done to ensure that the gold industry is fully sustainable through dialogue with governments, companies and consumers, as all have a role to play in promoting responsible gold production.
If we think about the relationship between business, human values and environmental rights, there are several international norms and standards.
People are "the source, the center and the purpose of all economic life" ("Gaudium et Spes"). The principle of sustainability proposed by the Social Doctrine of the Church holds that social responsibility is in balance in a globalized society. Our search for better results must be in harmony with the care of life and nature.
Assistant Econome General of the Congregation of the Mission of the Vincentian Fathers, registered financial and investment advisor.
