Why invest in gold?
4 good reasons to invest in gold
Investing in gold raises many questions. As a precious metal, gold has long been considered a safe haven by investors. Its stability and ability to retain its value over time make it an attractive choice. What’s more, gold is often used as a hedge against inflation and currency fluctuations, but that’s not all! In this article, discover 5 good reasons to invest in gold, an asset with little sensitivity to economic uncertainties.
Why invest in gold?
1. Gold is a safe haven
First reason to invest in gold: it’s a safe haven. This means that this precious metal will always be valuable, and that its price is constant over time. It is a stable, even rising asset, characterized by its reliability.
For centuries, gold has been used as a medium of exchange: central banks around the world hold large gold reserves to increase confidence in the currency. It’s an excellent investment for securing savings.
In the event of a financial crisis, the value of gold tends to rise. This is known as counter-cyclical value: when shares on the stock market lose value, savers and investors turn more readily to gold, which is more tangible and reassuring.
The taxation of gold also makes this an interesting investment product!
2. Gold protects against inflation
Investing in gold also protects against inflation. Since fiat money (coins and banknotes) can be created ad infinitum, excess money creation can depreciate its value. This is what generates inflation.
Conversely, the value of gold cannot be manipulated: the purchasing power of a gram of gold remains stable, which is not the case for the purchasing power of a euro. So, in the event of high inflation, €1,000 in bank savings will lose value, while €1,000 invested in gold will retain its value. In times of hyperinflation, gold plays a protective role.
3. Gold is internationally recognized
The definition of gold positions it as a financial investment in its own right. In fact, it is the only financial and monetary product that has never gone bankrupt. It is accepted in every country in the world, with a universal value thanks to the international gold price. It’s an asset that can be traded on any market, anywhere in the world: you can buy and sell gold wherever you are, so you can keep your assets even when you move.
4. Gold diversifies your savings
You’ve probably heard the expression “don’t put all your eggs in one basket”.. The economy is unpredictable, especially the stock market, but even banking products are not invulnerable to crises. Gold allows you to secure your savings and diversify your assets without taking risks.
Insofar as gold reacts in the opposite way to most financial products (it appreciates when others fall), it moderates the potential losses generated by your other financial assets. L’buying gold coins or thebuy gold bullion allows you to balance your portfolio, stabilize your assets and/or make up for losses caused by inflation.
How to invest in gold?
To the question should you buy gold?the answer is yes! For all the reasons mentioned above, investing in gold allows you to secure and diversify your savings. It’s a safe and stable investment. You can choose between :
- Invest in physical gold: gold coins or bars.
- Invest in paper gold: derivatives or mutual funds.
To make your gold buying and selling project a reality, it’s best to go directly to a physical agency specializing in precious metals such as gold and silver. You’ll be advised by experts to choose between coins, ingots and bullion according to your objectives and budget. Buying and selling prices are estimated on the basis of relevant criteria, such as real-time prices, ounce of goldthe silver content of the objects on display, etc.
At Les Métaux Précieux, we offer you a wide selection of high-quality coins and ingots, at the best prices based on current gold prices. All transactions are tracked and 100% secure, so you can invest in gold with peace of mind. We even take back your gold teeth !