The devastating effect of the virus on human life is now the harsh reality of our existence. The pandemic also had a significant adverse impact on the economy as well as the society. It resulted in historical volatility in financial and currency markets, disrupted entire industries, sparked social instability, reignited regional conflicts, and continues to have other negative effects. Never before in modern history has capital protection been more relevant.  It was also an important stress test for the solutions that DasKapital has been offering to its clients.
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This crisis has clearly demonstrated the relevancy of gold as a safe asset, with relatively low price volatility and exceptional performance in the times of instability. The spike in price over $2,000 made the gold the major headline. Since the price has stabilized, and within the first six months of the pandemic the price of gold appreciated by around 20%. The outlook for gold remains positive due to the many factors with expansion of the money supply being one of the most important.
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Residential real estate in Austria has also demonstrated good performance. The prices have remained stable despite the drop in transaction volumes. The existing projects under construction all continued and there were no changes in rent levels due to the government support. As the situation stabilized with social distancing and mask-wearing rules there has been noticeable appreciation in purchase prices. Employees working from home, people spending more time in their places of residence, resilience of Austrian economy, as well as low interest rates all contribute to real estate price stability and appreciation.
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DasKapial continues to provide the highest level of service to all its clients. We will be pleased to see you in the city of Vienna that is open for business travel.