Investing in precious metals such as gold or silver is a wise choice in the current economic climate, which can best be described as tense. Global inflation is causing prices to rise across the board and purchasing power to fall, causing investors' portfolios to lose value.
Conversely, precious metals in general are anti-inflationary and constitute stable reserves of value. When is the right time to buy gold, or which precious metal to invest in ?
Find out in this article.
What are the different financial strategies for investing in precious metals ?
The question "How should I invest my money ?" is asked by many individuals wishing to create or diversify their asset portfolios.
There are many possible financial strategies for investing in precious metals :
- Physical purchases of gold or other precious metals
- Investing in ETFs (exchange-traded funds)
- Investing in precious metals futures contracts
- Buying shares in mining companies
In recent years, market prices and gold prices in particular have risen steadily. This trend has been particularly marked since 2000. In addition to the price of gold, this trend has also affected the price of silver, palladium and platinum. So it's easy to see that investing in precious metals is of real financial interest to investors.
What is the best way to acquire physical gold or silver ?
There are various ways of buying physical gold or silver. Buying gold bullion coins or silver coins is an advantageous initial investment strategy.
A second solution is to invest in gold and silver ingots at their stock market price. For example, you could opt to buy a 100g gold ingot or a 20 francs Marianne Coq gold coin.
Whatever the size of gold or silver you choose, these safe-haven assets are of real interest to investors. This is because of their ability to preserve purchasing power through periods of economic uncertainty or inflation. Precious metals as assets therefore remain attractive to investors seeking to protect their wealth.
Precious metals and financial market fluctuations
The quotation of precious metals, particularly gold and silver, plays a key role in managing investment portfolios in the face of financial market fluctuations. In times of economic uncertainty and market volatility, these metals have historically served as safe havens. Investors turn to gold and silver because of their ability to preserve value in times of crisis when compared with other types of investment (equities, property, currencies, cryptocurrencies, etc.).
Take gold, for example : over the years, its price has shown an upward trend in response to factors such as inflation and geopolitical tensions, as is the case today. Gold's appreciation is explained by its scarcity, its demand as a precious metal, and its status as a store of value.
To illustrate this trend, the gold price curve on this chart clearly shows the gradual rise in the price of the yellow metal over time. This illustration reinforces the argument for including gold in an investment portfolio. In this way, investors can protect themselves against economic turbulence and diversify their assets to reduce risk.
As a result, it seems clear that buying physical gold or silver would be an appropriate choice, particularly in times of inflation. So if you're looking to buy precious metals, don't hesitate to turn to Godot & Fils, a company that has been specialising in the sector for over 90 years, to help your investments grow.
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