For almost two years now, a series of financial, political and economic factors have supported the price of gold. The value of the yellow metal has risen steadily since the beginning of 2020 to unprecedented levels, confirming its status as a safe haven. Many investors have turned to gold to diversify and secure their investments. There has also been a resurgence of interest in physical gold: individuals prefer this form of investment, much more than paper gold. But is the revival of this precious metal deserved on the precious metals market ? Explanations.

Gold : a metal that remains unaffected by economic and financial upheavals

One of the first arguments that can explain the revival and the rise of physical gold on the markets is its capacity to stay away from the jolts of the traditional markets. Indeed, this is one of the main characteristics of so-called safe havens: the ability to appreciate (and gain value) when investor confidence wanes.

This status has only been confirmed in recent years, but also in recent decades. The economic and financial crises we have experienced have only reinforced this status: let us remember the oil shocks of 1973 and 1979 or the subprime crisis in 2008.

And it is no wonder that gold is once again attracting large numbers of investors today, as Europe and the US face the risk of recessions and economic and financial crises. Investors and private individuals see the precious metal as a safe investment to secure part of their capital.

Diversification of media makes gold more accessible

Another reason for gold's resurgence in the precious metals market is that it is now easier to invest in physical gold than it was before.

Until a few years ago, there were two approaches to investing in gold: you could invest in physical gold (and build up precautionary savings) or you could invest in paper gold (and aim for a medium or long-term return).

It is important to remember that paper gold is a financial product that reproduces the performance of physical gold.

Added to this is the fact that the diversification of investment vehicles has considerably changed the situation. The French are now turning more to physical gold to build up precautionary savings, but also to aim for medium- and long-term profitability.

It has indeed become more common to invest in certain investment coins. This is particularly true of the 20 franc Napoleon, which remains the undisputed best-seller. Similarly, in recent years, many bullions bars have appeared, weighing between 5 and 500 grams, making it even easier to buy gold.

For all these reasons, it is not surprising that physical gold is enjoying a resurgence of interest among investors in the gold and silver market, and this resurgence of interest is well deserved, given the advantages that physical gold has. And for good reason: it has intrinsic value and enjoys true safe haven status.