Among the many investments offering excellent potential returns or simply providing a bulwark against repeated geopolitical crises, gold is probably one of the most obvious choices. As well as being the ultimate safe-haven asset, physical gold has proven over time to be a strong reserve, with steady progress and an unwavering upward trend. Here we look at how the quotation of gold has changed over time and the conclusions we can draw as investors.

A look back at the price of gold : an unequivocal trend

 
The price of gold has evolved remarkably over the centuries and over the years. Its history is directly linked to changes in the money and financial markets. Gold, a precious metal that has been coveted for centuries, has seen its history marked by some memorable peaks, so here are 3 unmissable examples :

• In 1980, when Afghanistan was invaded by the Soviets, gold reached an all-time high of almost $850 an ounce, fuelled by geopolitical tensions and galloping inflation.
   
• In 2011, it topped the $1,900 mark, propelled by multi-axis economic uncertainty caused by the sovereign debt crisis in Europe, global inflation and ongoing geopolitical tensions, particularly in the Middle East.
   
• In 2020, the price of gold hit a new record high of over $2,000 in the midst of a pandemic.

These fluctuations illustrate the importance of the yellow metal as a safe haven in the face of economic and financial turbulence.
 

The geopolitical issues surrounding gold : a precious metal at the heart of global conflicts

 
Changes in the price of physical gold are intrinsically linked to the emergence of geopolitical conflicts around the world. Paradoxically, crises and conflicts have a positive impact on the price of the yellow metal. Since 2006, the price has risen by a factor of 5, with a marked increase since the global financial crisis of 2008.
 
Another more current example is the crisis in the Middle East, with the resurgence of the Israeli-Palestinian conflict. This ongoing problem will undoubtedly have repercussions for gold prices and, more generally, for the precious metals market in the short and/or long term. 
 
The heightened tensions in this part of the world are raising concerns about a possible international escalation, particularly between the United States and Iran. Such an escalation could disrupt global oil production and thus affect supply and demand on world markets. 

This geopolitical uncertainty, combined with rising tensions in the Middle East, could continue to support the gold price in the short term, as investors seek safe-haven assets in times of economic instability and volatility.
 
Another important factor for gold prices is the opening up of Asian markets to the money market. This has boosted the gold price by offering new investment opportunities. Demand for gold in Asia, particularly in China and India, has increased, helping to support the price of gold.

A sustainable investment in times of financial market uncertainty

 
Gold plays a key role in geopolitical issues, as it reacts only marginally to global crises and economic upheavals. In times of instability, it is prized as a store of value and a refuge, chosen by investors to preserve their assets.
 
A current and pertinent example is the war in Ukraine. Against this backdrop, the yellow metal has once again seen its price influenced by market fluctuations, in response to an uncertain economy and inflation.
 
Today, therefore, it remains attractive to invest in gold assets. You can do so by opting for bullion coins such as the Napoléon 20 Francs or ingots such as the 1 kg ingot, for example. These solutions are all options to consider for investors looking for financial protection in times of crisis.

As a result, gold as a precious metal has played, and continues to play, a prominent role at the heart of geopolitical crises and economic fluctuations. Its history is a rich backdrop to its position as a safe-haven asset. What's more, the price of gold is closely linked to the upheavals of the world over the decades. In a world marked by instability, physical gold remains an obvious choice for investors keen to preserve their wealth, whether by investing in bullion coins, modern gold coins or bullion bars.