HAMBURG, GERMANY - NEWSAKTUELL - 5 Aug 2020 - The DAX (abbreviation for Deutscher Aktienindex, it measures the performance of the 30 largest (in terms of free float market capitalization) most liquid companies in the German stock market) and is in the middle of the week (Wednesday, August 5, 2020), within striking distance of a new record high, especially gold, probably the most beautiful precious metal, which has been used for thousands of years for ritual objects and jewelry and since the 6th century B.C. as a means of payment, is testing out completely new peak regions in terms of value.

On Wednesday morning, the price reached a new high of 2034 dollars, after the quotation had only cracked the 2000 dollar mark yesterday evening (04.08.2020). Since the beginning of the year, the precious metal has thus gained about a third in value.

Gold, like silver, is considered a crisis-proof and stable investment. In view of unprecedented rescue measures by central banks, confidence in common fiat currencies is declining in this context.

The environment of low interest rates, rising debt, fears of recession and a continuing depreciation of the US dollar could hardly be better at present, states Josip Heit, as Chairman of the Board of Directors of GSB Gold Standard Banking Corporation AG, based in Hamburg.

Gold, like silver, is considered a crisis-proof and stable investment. In view of unprecedented rescue measures by central banks, confidence in common fiat currencies is declining in this context. Fiat money from the Latin word "fiat", however, has nothing to do with the well-known automobile company, but is an object without intrinsic value that serves as a medium of exchange. The opposite of fiat money is commodity money, here for example tobacco, rice, or even gold and silver, which besides the external exchange value also have an internal value, this completely independent of governmental decrees.

Only recently, the heads of government of the European Union (EU) agreed on a 750 billion euro package of corona aid, by 2027, an unimaginable 1.8 trillion euros are to be distributed at the taxpayers' expense, whereby one must remember that 1000 billion (1,000,000,000,000) is one trillion, i.e. a number with 12 (twelve) zeros, here it is almost double.

According to Josip Heit and thus the GSB Gold Standard Banking Corporation AG, the currently weak US dollar is playing into the cards for gold as well as the falling interest rates on the bond market, especially in view of the numerous recent increases in government bonds with negative yields, which for the first time since March 2020 have risen to more than 13 (thirteen) trillion US dollars.

In the medium term, according to an analysis by Gold Standard Banking, the focus should therefore shift more towards inflation. So far, inflation has not yet started - due to weak demand - although the central banks are already taking massive countermeasures.

In Josip Heit's view, a proverbial "look in the economic rear-view mirror" shows that periods of weak price development and deflation were followed by phases of highest inflation.

The only open question is whether the global economy will recover from the corona shock in the foreseeable future as hoped. In the very long term, therefore, gold should maintain its strength and probably rise rapidly above the record high of USD 1,921 in 2011.

The currently broader base of investors (buyers) interested in gold also means that many investors are betting on gold, the lower the real yields are and the weaker the world's leading currency, the US dollar, the more attractive gold is. If you look at very long-term periods and take into account the change in price levels, gold has always maintained and increased its value, which is something no currency can claim at present.

The demand for gold bars and gold coins has even doubled in the first seven months of this year 2020, according to an evaluation by GSB Gold Standard Banking Corporation AG, compared to the same period last year. This is reported by the World Gold Council, the organisation of the gold mining industry, to a certain extent the highest statistical authority of all gold investors.

In a transparent way of its economic activities, Josip Heit and GSB Gold Standard Banking Corporation AG are taking this as their starting point. Because if you buy gold in small denominations on the web (Internet) or via app (abbreviation for application, i.e. application software for mobile devices), you could, for example, use a credit card company, which, however, can be reimbursed for each individual transaction.

A system created by GSB Gold Standard Banking Corporation AG, based on a block chain (a continuously expandable list of data records, called blocks, which are linked together by cryptographic methods), makes the payment process much more secure and this directly, without transaction costs between seller and buyer.

With this revolutionary idea, Josip Heit and GSB Gold Standard Banking Corporation AG will make the crypto financial market more secure and revolutionize it in many ways. GSB Gold Standard Banking Corporation AG is committed to a transparent financial market. Following this credo, Josip Heit has long been calling for sustainable regulation.

At the turn of the year 2019/2020, the German Federal Government has put as first regulatory measure - block chain and token - under supervision of the Federal Financial Supervisory Authority (BaFin). As a German public and federal institution with legal capacity, BaFin is subject to the legal and technical supervision of the Federal Ministry of Finance.


When using block chain technologies, the existing regulatory framework is the responsibility of the BaFin, provided that the parties involved are subject to the supervision of the BaFin. Josip Heit fully supports and welcomes this with GSB Gold Standard Banking Corporation AG and at the same time pleads for a sustainable regulation of digital assets.