Insignitus Gold was the first company to realize just how big a market Serbia is. The company’s aim is to remain the No.1 brand and for its customers to return and recommend it to others, and for the rule “Write with gold and seal with gold” to be applied every time Insignitus Gold is mentioned
Here we interviewed Insignitus Gold Serbia MD Ljuba Jakić, a winner of numerous international awards for profitability and work under particularly delicate circumstances. He is considered the initiator of the bullion gold business in Serbia, thanks to which he enjoys the respect of customers and competitors alike.
You’re a very well-known figure in business circles across Europe, but could you nonetheless present yourself to our readers?
I have many years behind me (70), though admittedly they were very fulfilling ones, so I have no regrets about that, while there were also many obstacles that I overcame on that long road. When I recall the past, it seems that somehow many things in my life revolved around gold, without me even being aware of that.
I’ve resided at 24 addresses in seven cities and four countries, while I’ve also changed my profession four times. As a civil engineer, I wrote programs for mathematical models and dealt with IT sector marketing, system gastronomy, etc. I spent part of my career working in key positions at McDonald’s in Serbia, Austria, and Slovenia. Its logo consists of the so-called “Golden Arches” forming the letter ”M”. Then, in 2007, I was a partner in bringing the quick-service brand KFC to Serbia, the main product of which is its “Golden Wings”, and in the twilight of my career, I found myself working with bullion gold with a purity of 999,9.
I’m playing the “fourth quarter” of my life, but my passion for creating has never abandoned me or dissipated. I guess my constant movement keeps me going. They say that a rolling stone gathers no moss.
How did the bullion gold market in Serbia emerge?
It was in June 2013 that a group of my Austrian friends, who thought the Serbian market was perfect for starting a new project, appeared. If there is any country in the world that has been confronted by the highest hyperinflation ever and the printing of banknotes with fifteen zeros, that was Serbia in the period from 1991 to 1993. That’s why this fact was the incentive to launch from here specifically.
However, nothing was known about bullion gold at that time; no written regulations existed, nor was there any existing law dealing with this topic. This resulted in us spending a long time going around in circles. Ultimately, my partner Karl Walder decided that we should launch the project immediately, given that it isn’t prohibited by law. We received the Ministry of Trade’s approval for our written business concept and started preparations.
One specific barrier was represented by the existence of VAT, which meant that every purchase cost 20% more, discouraging people from easily deciding to make a purchase. Shrewd players began buying gold abroad and smuggling it over our border, where they were greatly disillusioned due to the duty charged. However, there were a few clever exceptions who were aware that the price of gold would continue to rise, which it has. Over the course of these nine years since 2013, when we – as “Insignitus Gold” – opened the Serbian market, the price of gold has increased by 96%, marking an average of 12% per year.
What kinds of problems have you faced? Have you been compelled to solve them on the fly?
By grasping the reason for sporadic and small sales, we approached the Ministry of Finance in August 2015 with a proposal to amend the Law on VAT and abolish VAT on bullion gold, which has been done everywhere else in the world. That situation endured for more than two and a half years and I had already lost hope when I one day received a call from the Ministry of Finance with a proposal that I join the team tasked with amending the law and abolishing VAT. We worked quickly; everything happened in a flash and the Law on VAT was amended to include Article 36 b, with which the 20% VAT was abolished by the National Assembly in December 2017 thereby completely defining trade in bullion gold in Serbia. It was then that the conditions were created for the market to be formed and fully legalised, and for smuggling to stop.
Over the course of these nine years since 2013, when Insignitus Gold opened the Serbian market, the price of gold has increased by 96%, at an annual average of 12%
However, Insignitus Gold was the first to recognise how big the market is because our people still keep cash in banks in various currencies with minimal interest. When they realise just how much the value of money depreciates over time, they decide to exchange it for gold and thus protect their capital from certain losses. We always go out of our way to satisfy the wishes of customers when they decide on the structure of their purchase and the prices they can afford to pay, and they immediately receive their gold without any waiting or postponements of delivery deadlines.
How do events around the world influence the gold market?
The COVID-19 crisis caused bullion gold to become particularly interesting, and then came the war in Ukraine, which led to demand increasing by more than 1,000%, and that demand is not waning. The lockdowns imposed almost worldwide resulted in more money being printed and placed into circulation than ever before. The consequence of this is clear: skyrocketing prices and official data on inflation that doesn’t correspond at all with the reality facing consumers. That’s why we advise everyone who is able to transfer their savings to gold and not to keep money in any paper currency, because their decline in purchasing power is devastating and interest rates provided by the bank are discouraging.
Does the fact that you don’t view gold as being more valuable than people distinguish you from the competition? Why is Insignitus Gold No. 1?
In working with buyers, I’m fulfilled by sales conversations and developing an understanding of how people think differently and what they find important. We process the minutest detail that one of them mentions and incorporate that in order to improve our operating procedures. That’s something I consider a kind of creation of mine, one that brings me satisfaction in my work and the feeling that nothing is difficult for me despite my advanced years. We believe that such an approach is what distinguishes us from the competition and that we will continue to identify new ways of providing our clients with top service and affordable purchases. But, not only that. “Write with gold and seal with gold” means we are here to keep our promise, each word we say must be the truth. We live in a time where presentation is more important than substance. Although I can partially understand, but I might object to the competition that the information quoted on their websites is often tricky. That’s why I advise customers to meet the bider personally to form their own opinion for the final decision.
The walls of our 5th-floor office at 30 Knez Mihailova Street are adorned with two posters – one titled “Kai zen” [Kaizen] and the other “Nulla dies sine linea” [Latin for “no day without a single line”] – which serve to remind us of two essential work principles. The first is the Japanese business concept of constantly improving all business activities and personal effectiveness. Their emphasis on ensuring the highest quality in all aspects of production is characteristic of the inclusion of all employees in the search for continuous improvement, regardless of how big or small. And that is precisely where creation that fulfills every normal human being can be realised. The second poster’s Latin saying can be translated as “Not a single day without a line” and means that one should do at least something every day.
With these two posters, and a few photos and international diplomas for profitability in the year 1999, we want to leave the impression on clients that our approach to work and life is very serious and reliable, and that our relationship with them is filled with the greatest respect and appreciation. My wish is for my younger colleagues to also adopt these principles of quality because that will greatly help them to advance through active work.
We would like to leave a golden trail behind us always; a feeling that we’ve done a good deed for people in our work and created a feeling not only for material value but also for social values, by having helped someone preserve their capital from collapse.