What impact will the energy crisis have on financial investments?

The 04/10/2022 in "Financial news"

The energy crisis that is affecting the whole world and more particularly France at the moment points to the presence of an important need for electricity and gas caused by many parameters.

Indeed, the main reason for this crisis is the war in Ukraine. Since the beginning of the war, the price of natural gas has risen sharply as Europe is heavily dependent on Russian gas.  

The war in Ukraine has therefore had a cascading effect on the price of gas, but also on the price of electricity.

In addition, France is also paying for a series of problems with its nuclear reactors. The main reason for this is that half of France's nuclear reactors have been unavailable for months. These shutdowns have deprived the country of a significant part of its electricity production. 

As a result, France is experiencing a major energy crisis, which may have repercussions on the investment portfolio of households and companies as a whole and create a certain amount of anxiety among them.

Several solutions would allow investors to protect themselves against such high economic losses and to secure the savings of their financial investments, such as investing in physical gold.

 

Rising energy prices: a threat to household and business budgets 

 

Rising energy prices threaten the financial equilibrium of many economic agents.

Indeed, whether it is the case in companies or in homes, heating expenses could reach several hundred euros more on their electricity bills by 2023.

Similarly, the rise in energy prices could have negative consequences on the investment portfolio of all investors, such as a decrease in their purchasing power, which would lead to a decrease in growth in the economic market.

Moreover, despite the state's introduction of the tariff shield to limit the effect of this energy development, it will have a negative influence on investors' spending. 

On the other hand, there are many strategies that could be used to reconcile this energy increase, such as increasing energy efficiency and sobriety to reduce energy consumption.

However, this solution would appear to be rather costly over time and would not guarantee a sufficient response to the decrease in monetary costs for households or companies.

However, investment in certain areas such as physical gold would allow investors to maintain a sustainable savings over time, which is essential in times of crisis.

 

Gold: the precious metal that stands out from other assets in times of energy crisis

 

The evolution of energy prices raises the question of the future of investment in financial assets. This crisis is transforming all assets in the face of future energy costs. 

Also, it clearly marks the borderline between two qualities of assets: those that are dependent on fluctuation, threatening to turn a simple investment into a heavy burden (real estate, for example) and those that offer a long-term investment capacity and protect against energy volatility, such as financing in the yellow metal, otherwise known as "gold".

Indeed, at a time when the energy crisis is weighing terribly on the profitability of many investors, the primary question of investment diversification is particularly important.

Among the safe havens that are not affected by the current economic climate, gold could be a way for you to diversify your financing portfolio.

By investing in precious metals, you will be able to put your money in a fairly safe investment that can be held for many years. It is also worth noting that in times of crisis, gold could reach new heights.

Even if the return on an investment is not 100% certain, the reliability of gold in the most crucial moments of financial history has been verified: the 1979 oil crisis, the 2008 financial crisis or the pandemic.

Consequently, the yellow metal would represent a durable investment or a means of investment during periods of economic uncertainty, as in this case with the rise in the price of electricity. Thus, it would provide a balance of financial investments in times of crisis. 

Finally, investing in gold is currently the best way to finance the rising energy crisis in France and around the world. It could, for example, allow you to make your savings grow or to gain in profit during a rather unstable economic period.

 

GODOT & FILS: THE COMPANY SPECIALISING IN PRECIOUS METALS

 

Godot & Fils puts its know-how at your service, as precious as the metals we have been trading since 1933.

We provide you with professional and personalised support, based on our expertise in everything to do with the yellow metal: the value of gold, taxes on gold, changes in the price of gold as well as the price of silver, of which our company is also a specialist.

Whether it is a question of increasing your assets or taking charge of your transactions, we guarantee you the best rates for buying and selling gold, in the best supplied catalogue of coins, ingots and bullion on the market.

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