Gold has long been known as a "universal" currency, a medium of transaction and a store of value. This precious metal is considered one of the most obvious investments for diversifying an investment portfolio.

Similarly, when the financial markets go through economic fluctuations, the yellow metal appears to be the safest means of financing.

However, other investments such as Livret A and real estate investment may be of interest to households in order to gain profitability.

The limits of Livret A and property investment

If you are looking to grow your savings over the long term, there are several financing options available to maximise the return on your investments. In recent years, the Livret A has become one of France's favourite savings instruments.  It attracts many shareholders thanks to its security of investment and its remuneration can vary between 0.75% and 8.5%.

Unfortunately, its low remuneration is causing economic agents to rethink this investment. Over the last five years, its return has stagnated at 0.75% before falling to 0.50% in February 2020. 

Moreover, the real estate sector is also a fairly durable asset value over time. As a result, rental investment illustrates a foresight solution for households to build up a particular pecuniary wealth while protecting themselves from the vagaries of the economic market.

Although it provides a form of monthly income, property investment is not a risk-free investment. Between the hazards of unpaid rent, the rise in interest rates on loans granted by banks, the effect of the usury rate or even the variable charges existing in the field of co-ownership, investment in real estate is not without risk.

French investors therefore wish to diversify their portfolios through other financial assets.

Gold: a precious metal to protect against economic uncertainties

Investing in gold has many advantages. It could offer the possibility of improving the overall performance of investment portfolios for all investors while providing stability and security. Financing in physical gold could allow investors to diversify their investments wisely. The precious metal is increasingly attracting savers from diverse backgrounds because of its interchangeable liquidity in a globalized market.

The debt crisis in the Eurozone and the unexpected geopolitical crisis in Europe are leading to a sharp increase in the cost of living for households. Historically, gold has always played its role as a bulwark against inflation.

Empirically, there is a correlation between inflation and the price of gold: the higher the cost of living, the higher the price of gold.

Gold is a "safe haven" asset as it protects the economic environment from market fluctuations or uncertainties in existing monetary policies. 

Therefore, the idea of acquiring gold would allow investors to maximise their profits, avoid the rising cost of living by curbing inflation and protect you from losses in the stock market in times of crisis. Culturally, investing in gold in the form of physical coins and bars has been a French tradition for decades. 

GODOT & FILS: The company that has specialised in precious metals for over 90 years

If you wish to buy physical gold or any other precious metal, Godot & Fils has been putting its experience and know-how at your service since 1933.

Godot et Fils provides you with professional support based on their expertise:

• Personalized advice according to your budget
• Explanation of the taxation of precious metals
• Provision of physical gold in an agency or by secure delivery
• Safekeeping and storage facilities in France or abroad
• Rental of registered safes in certain Godot&Fils branches

You can contact one of their agents on 0800 119 119 (free call) for all enquiries about investing in investment gold.