Over the last two decades, the price of gold has fluctuated considerably, influenced by a variety of economic, geopolitical and market factors.

Analysing the price of gold in euros provides a better understanding of the underlying dynamics and the investment opportunities offered by this precious metal.

This study examines the evolution of the gold price in euros, as well as the main drivers of these variations and their impact on gold and silver investment decisions, using concrete examples.

Factors influencing the price of gold

The price of gold is determined by a multitude of factors that interact in complex ways.

Gold is often seen as a safe haven in times of economic crisis. The 2008 financial crisis, for example, triggered a gold rush, driving up the price significantly.

The monetary policies of the major central banks also play a crucial role. Low interest rates make gold more attractive by reducing the opportunity cost of holding it.

Geopolitical tensions, such as conflicts in the Middle East, Brexit and trade disputes between the United States and China, are increasing demand for gold. Investors are seeking to protect their assets against the risks associated with these uncertainties.

Historical trend in the price of gold

Since 2004, the price of gold has followed a trajectory marked by several distinct phases. 

Since then, the price of gold has risen steadily from USD 400 to around USD 1,000 an ounce, thanks to growing demand and incipient financial instability.

Similarly, the global financial crisis of 2008 triggered a surge in gold prices, which reached an all-time high of USD 1,900 an ounce in 2011 as investors sought protection against economic uncertainty.

After peaking in 2011, the price of gold underwent a correction phase, stabilising at around USD 1,200 an ounce. This period was marked by relative stability, despite some fluctuations.

Moreover, since 2019, the gold price has reached new highs, partly as a result of the COVID-19 pandemic, expansionary monetary policies and rising geopolitical tensions.

The price of gold in euros has benefited from the relative weakness of the European currency against the dollar.

The characteristics of investing in precious metals 

Investing in gold and silver can take a variety of forms, each with its own specific characteristics:

• Gold coins such as the Gold Sovereign and the Gold Louis are prized for their historical value and liquidity. They provide excellent protection against inflation and are easy to exchange.

• Gold bars, such as the 250 gram ingot, are preferred for their purity and standardised weight. They are a reliable option for investors looking to secure their savings.

• Silver is an attractive alternative to gold, with investment options such as the 5 franc ecu, the silver Maple Leaf and the 1 kg silver ingot. Silver has important industrial applications and can offer opportunities for diversification.

In conclusion, the trend in the price of gold since 2004 highlights the importance of this precious metal as a safe haven in times of economic and geopolitical uncertainty.

Understanding the factors influencing the price of gold is crucial for investors seeking to diversify their portfolios and protect themselves against inflation and economic risks. Whether through the purchase of coins, gold bullion or silver, investing in precious metals remains an appropriate and prudent strategy for securing your assets.