The current financial crisis is causing many investors to rethink the place of some of their investments.
Some assets are too dependent on financial fluctuations, threatening to turn the investment into a heavy burden.
However, other investments have advantages that make them attractive in times of financial crisis, such as gold.
But why is gold an effective response to the financial crisis we are experiencing?
Gold: a safe haven par excellence
Gold has long been regarded as one of the most important, and therefore most popular, stores of value. Gold is rightly referred to as a safe haven. And for good reason: gold has an intrinsic value, unlike banknotes or other assets that can lose their value in times of crisis.
Gold thus appears as a symbol of stability in the economic world.
It is mainly for this reason that many savers and investors turn to the purchase of gold bars and coins in times of economic crisis, financial crisis or inflation. This allows them to be affected to a lesser extent by economic turbulence.
A precious metal that protects against financial fluctuations
For several months now, gold has been experiencing galloping inflation in France and throughout the world, caused by the war in Ukraine and the post-Cold War economic recovery. This inflation has hit the purchasing power of the French and the prices of raw materials have soared.
In such an inflationary context, the yellow metal appears to be a safe investment, allowing to protect oneself against inflation and to protect one's savings.
Indeed, the price of gold appreciates in periods of inflation or recession, which makes it possible to secure one's savings.
In other words, the price of gold rises in line with inflation, making the precious metal an ideal investment for securing capital. It is not surprising, therefore, that the context is particularly favourable for investments in gold and that many individuals and savers do not hesitate to devote part of their investment portfolio to gold.
Thus, gold appears to be a real response to the current financial crisis. Its quality as a safe haven makes it a particularly attractive asset in times of crisis and allows investors to protect their savings from inflation.
STAY INFORMED
Receive the latest news by subscribing to the newsletter