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Geopolitical tensions and precious metals : what are the consequences ?

The 02/10/2024 in "Financial news"

As geopolitical tensions intensify, global markets are experiencing wild swings. 

Conflicts in the Middle East, the war in Ukraine and the increasing de-dollarisation of international trade have created a climate of economic uncertainty. Against this backdrop, both private individuals and institutional investors are seeking to protect their assets. 

Safe-haven assets, such as gold and silver, appear to be a secure option. But how do these tensions really affect the price of these precious metals ? 

This article explores the effects of these fluctuations on the financial portfolios of individual investors.

Gold and silver, pillars of stability in the face of geopolitical uncertainty

Current conflicts are having a significant impact on the global economy, forcing individuals to review their savings strategies.

Gold and silver, recognised as safe havens, are seeing their prices rise as geopolitical risks multiply, prompting more and more investors to put their savings into them.

Events in the Middle East, for example, as well as tensions with Iran, are having an impact on the financial markets and the price of gold and silver. 

The war in Ukraine is also having an impact on the European economy, boosting demand for precious metals. 

Moreover, since the start of the conflicts, gold has risen by 15%, prompting some savers to turn to these assets. Economic sanctions against Russia have also increased demand, while Moscow has bolstered its gold reserves, encouraging investment in gold coins and bars as a way of protecting itself from these tensions and growing its asset portfolio.

De-dollarisation : an opportunity for gold

The phenomenon of de-dollarisation is gaining momentum, with many countries seeking to reduce their dependence on the US dollar. 

China, Russia and other emerging economies are favouring trade in local currencies, gradually weakening the dollar's supremacy. This trend is prompting savers to turn more to precious metals such as gold, seen as a way of preserving their purchasing power in the face of any devaluation of traditional currencies.

There has also been an increase in purchases of precious metals, reflecting a loss of confidence in fiat currencies and a search for tangible assets.

Investment outlook for precious metals: an in-depth analysis

Recent developments confirm that gold and silver will remain popular safe havens in the future. Faced with economic uncertainty and geopolitical tensions, many savers are turning to these metals to secure their assets.

Investing in gold coins and bars: a secure strategy for individuals ?

Gold coins such as Napoleons, Krugerrand and Maple Leaf are attracting growing interest among retail investors. They offer great flexibility and are easy to resell. 

Gold bullion, on the other hand, is an ideal option for those wishing to diversify their savings substantially. With the continued growth of the gold-buying market, many experts estimate that the price of gold could reach $2,500 an ounce by the end of 2025, making this investment even more attractive to retail investors.

Silver : a high-potential precious metal to keep an eye on

Often underestimated, silver offers significant growth potential. Industrial demand for silver, particularly in the technology and renewable energy sectors, is rising steadily. Silver ingots and coins such as the Silver Eagle are increasingly popular with private investors looking to diversify their investment portfolios. 

If the price of gold continues its upward trend, silver should follow, offering attractive returns.

In conclusion, against a backdrop of persistent geopolitical tensions, investing in gold and silver is an effective defensive strategy for private investors. 

Whether through coins, bullion or online investments, these precious metals continue to be safe havens in the face of political and economic uncertainty. 

The experts' forecasts are unanimous : gold and silver will continue to play a key role in the portfolios of savvy savers.

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