In times of soaring inflation and a gripping financial crisis, the financial investments to be favoured have changed. With the stock market and crypto-currencies having fallen sharply, it is risky to invest your capital in them, at least for the short term.

The same applies to passbook savings accounts such as the Livret A, whose 1% rate of return pales in comparison to that of inflation. Rental property can be a solution if the price of rents is indexed to inflation. However, beware that the value of the property as a whole may fall as more and more loan applications are turned down due to rising interest rates. Thus, other monetary solutions would prove to be answers to counter these crises and invest on the long term: the investment in precious metals and more particularly in physical gold.

Gold, the anti-inflation safe haven by excellence 

Gold does not have the same problem as real estate. Having been a benchmark until the 1970s (Bretton-Woods agreement), this precious metal still remains in everyone's consciousness as the safe haven par excellence in times of crisis and high uncertainty. 

Similarly, gold does not follow the same path as real estate. Indeed, being more liquid than the latter, it is easier to access even in the event of a rise in interest rates, especially as it can be obtained by the ounce, gram or ingot. A breakdown that is by nature impossible to apply to real estate.

Also, the yellow metal is a hedging asset. As it does not produce a return, it is considered a protection against inflation: when interest rates are low, investors turn away from bonds, which yield little, in favour of gold.

An interesting development in the price of gold

The price of gold today is reaching new heights. The value of gold is not far from increasing tenfold since then with a peak at the evolution of the ounce in February 2022.

Besides, the quotation of gold is not very volatile unlike that of crypto-currencies or oil (let's not forget that the latter was sold at a negative price per barrel in the middle of Covid before rising from its ashes thanks to the war in Ukraine).

Moreover, the price is further stabilised by inflation that is not growing as fast as before and by higher central bank interest rates to compensate for it. The fall in the price of gold is therefore not imminent. 

Like gold, other precious metals such as silver and platinum will follow a similar price trend in 2022, with a price peak in February when the war in Ukraine begins and a further rise at the end of the year due to the likely risk of a recession next year, which would only increase their value.

Thus, gold and other precious metals are known as diversifiers to balance an investment portfolio.

As a result, more and more investors are focusing on gold in their tactical asset allocation. Several formats are therefore possible, from investment gold coins to modern gold coins, from 1kg gold bars to 100 gram gold bars.