Many individuals want to keep their money under control and make it grow through safe investments. The tense situation of the US federal debt, which reached its limit of 31,400 billion dollars in mid-January, is causing concern. Against this backdrop, gold prices are once again proving that it is the safe-haven asset par excellence. Here are some explanations.

The US debt in a nutshell

US debt is the total amount of money borrowed by the US government to finance public spending when it exceeds its revenues. Its high level, which has now reached its ceiling, is raising concerns about financial stability, the impact on world markets and the government's ability to repay its creditors.

The FED, or US Federal Reserve, plays a crucial role in managing US debt and the economy in general. One of the FED's bodies, the FOMC, has a considerable impact on investors, mainly through its decisions on interest rates. Changes in rates can influence the US dollar, the equity market and the bond market, prompting investors to adjust their strategies and portfolios.

As an investor, it is therefore essential to keep a close eye on developments in US debt and to take them into account when making your investment decisions.

Our best advice: diversify your investment portfolio or invest in precious metals by buying and selling physical gold, for example.

What are the advantages of investing in gold ?

Buying gold bullion bars or investment coins is a strategic choice that allows you to invest your money in a historic safe-haven asset. Over the last century, gold has risen steadily in value, with its price multiplying up to 10 times. In 2023, this trend was clearly confirmed. The cotation of gold has continued to rise, benefiting in particular from the devaluation of the dollar.

Today, gold is undeniably a reliable store of value and, above all, a long-term investment. When we look at the gold-dollar price, we see that the precious metal is clearly outperforming the US currency. So the yellow metal remains a safe investment as a store of value, whether for the general public or for those more experienced in stock market investments to cope with the current economic climate.

Rising interest rates and inflation are two factors now encouraging investors to invest their dormant money. The aim is to avoid a major loss of purchasing power and the full impact of currency devaluation.

As a result, the current economic and geopolitical climate is particularly favourable to buying gold.