Faced with the financial crisis and the galloping inflation that Europe and the United States are experiencing, more and more individuals are seeking to diversify their investments. The aim ? To secure part of their capital and protect themselves from inflation. To do this, investors are turning away from traditional assets and towards safer assets, such as gold. And for good reason, gold bars and coins are proving to be particularly effective in diversifying your investment portfolio. Here's the lowdown.
Gold : an exponentially growing financial asset
Gold has enjoyed a real resurgence in popularity in recent years, particularly since the crisis linked to the coronavirus pandemic and its many consequences on our market economy.
Indeed, there has been a real exponential growth in the price of gold since the year 2020, bringing the value of gold to unprecedented levels. There are several reasons for this. Firstly, gold is considered to be the ultimate safe haven. The precious metal attracts investors in times of crisis because of its intrinsic value, a quality not found in publicly traded assets and investment products.
In addition, the yellow metal is a great product to protect against inflation. Furthermore, it rarely loses value and is far more profitable than other assets that tend to stagnate in times of recession or financial crisis.
Also, in France, gold has many tax advantages. These qualities encourage many individuals to diversify their investment portfolios each year in order to benefit from the advantages of this precious metal.
The yellow metal or the long-term investment product in the financial market
There are two choices for those who wish to invest part of their capital in gold. It is possible to buy gold bars or bullion coins.
Today, the investment coin, such as the 20 Francs Napoleon gold coin, is undoubtedly the most popular solution for investors. Indeed, it makes it easier to split up one's investment and to buy and resell gold coins according to one's needs.
Moreover, it allows investors to benefit from the premium of the bullion coin (the difference between the intrinsic value of the coin and its negotiated price). Some gold coins are therefore worth more than their weight in gold.
However, some investors do not hesitate to turn to gold bullion. Indeed, today there are gold bars and ingots of all weights (10g, 20g, 100g, 500g, etc.). This solution is mainly aimed at those who wish to invest larger amounts in gold.
Thus, gold would appear today as a great solution to grow your investment portfolio. Investing in gold allows you to take advantage of its safe-haven quality and to protect part of your capital from inflation.
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