In recent weeks, the price of gold has experienced a steep climb, surpassing 2,000 euros per ounce. Despite the difficulties faced by other commodities, which have seen a decline of 2.5% this year, gold has risen by more than 5% since the beginning of the year, emphasizing its role as a traditional safe haven. This trend is confirmed by Luc Charlier, Investment Strategist at ING.
The French Are Still Enthralled by Gold: Both for Selling and Buying.
Even in the face of historically high prices, the French are still drawn to gold, both for selling and buying. The crisis triggered by the Covid-19 pandemic has propelled the price of this precious metal to unprecedented heights, prompting many individuals to convert their old jewelry into cash. For some, these pieces of jewelry and ingots have lain unused in their drawers for a long time, without sentimental value. Today, they find a new purpose and bring in additional funds.
Rising Demand and Market Adaptation.
This trend has spurred strong demand in specialized stores, where buyers and sellers are jostling. A first group of sellers has capitalized on this increase to make profits from their long-held gold, while a stream of buyers is interested in securing their assets through gold investment. Alexandre Convent, Administrator at Gold & Forex International, has noted a significant increase in traded volumes.
Gold as an Investment in Times of Crisis: Accessible for All Budgets.
Faced with a gold bar hovering around 60,000 euros per ounce at 1,816 euros, gold has established itself as a safe haven for individuals in times of economic and geopolitical turmoil. Some French individuals have chosen to sell their old jewelry to capitalize on this value, while others express concerns about the accessibility of gold based on their financial resources.
The gold market has adapted to this diversity of budgets, making this investment attractive in times of crisis. David Knoblauch, Numismatic Expert at Godot and Sons, explains that gold is now accessible across various budget ranges. Gold bars starting from one gram can be acquired for as little as 75 euros, allowing a wide range of individuals to invest in this precious metal. Whether for individuals with substantial resources or those with more modest budgets, gold has succeeded in establishing itself as a diverse financial refuge.
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