In the current situation, inflation is not sparing the precious metals market. So how is gold still profitable? What are the best ways to make a sustainable investment with gold today?
These are all questions that we will answer here.
A stable money market investment for the long term
Everyone and every market is being impacted by the historic inflation of recent months. As we said, this also applies to the price of precious metals. So how is gold faring in all this? Is it still profitable?
We won't drag out the suspense: yes, financial investments in gold are indeed very interesting despite the current situation.
On the contrary, it is even the most appropriate solution in this type of situation. In fact, during many crises, investing in the yellow metal has proved more profitable than any other financial investment. This was the case in 2008 during the financial crisis, or even in the late 1970s during the oil crisis.
Now that we are in a crisis following the pandemic and with the addition of the Russian-Ukrainian war, this related effect is occurring again, albeit more slightly than in previous crises.
Beyond its ability to counteract crises, investing in gold has the great advantage of being sustainable. This is possible not least because it is a universal type of asset that will be sold anywhere in the world at any time. Even with the tax on gold on resale (capital gain), the investor comes out ahead.
What are the financial strategies for investing in gold?
There are two ways to invest your money in gold: physical or paper. An investment in physical gold is possible through the purchase of gold bars or gold coins. For example, you can buy a gold Louis or a gold Napoleon coin (French currency).
There are other types of gold coins, from the USA for example, such as the 20 or 10 US dollars. However, in France, when you resell this gold, you have to take into account the tax on the capital gain.
An investment in paper gold is mainly made through mutual funds or derivatives. These are stock market investments, share purchases or ETFs.
The most accessible, quick and certain way for all amateurs, and in particular beginners, remains the purchase of coins. Gold coins have stood the test of time and crises and have not lost their reputation. Especially in the present times, with inflation, rising energy costs, war and health crisis, buying gold is an excellent investment to make.
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