Health crisis: is it time to trust gold?

Since the appearance of the Covid-19 pandemic, the world economy has experienced many upheavals. The investment prospects available to individuals and professionals tend to be limited. The risks of financial loss do not cease to increase either. This phenomenon affects almost all sectors of activity. The question that many people are asking is therefore: does this crisis also concern investment in gold and precious metals? Indeed, for centuries, gold has been considered a safe bet for converting savings. Every global crisis has highlighted this advantage, and the current health crisis is no exception. I invite you to discover in this article the attractions of this noble metal.

Since the start of the health crisis, there has been an upward trend in the price of gold. Do not hesitate to visit this page to discover the quotations of the price of gold in real time. This trend is indeed explained by the safe haven of this precious metal. Its quotation generally increases in times of high inflation or financial crisis. This is why many savers turn to gold for safe investments. Demand has also steadily increased relative to supply, resulting in long-term increases.

It is important to know that gold does not earn interest. In other words, you cannot collect income on your investment. This is also the case for bonds and financial stocks. The latter yield different interests or dividends. However, with the health crisis, the global economy is slowing down. This makes these investments more or less risky. On the other hand, investing in gold remains a good alternative to secure part of your savings .

READ:  You need market research!

Health crisis: is it time to trust gold?

Gold is a material that is particularly appreciated for its malleability and its financial value . This raw material is mined on almost every continent before being shipped around the world. Then it goes through a refining process before being sold in different forms. In reality, gold is used in many fields (including technology and jewelry), but its main use remains the monetization of financial assets.

Note that despite the health crisis, the supply and demand for gold remain relatively high. About 75% of the international supply is filled by extractions of the precious metal in different countries. The remaining 25% are covered by recovery procedures. This makes it possible to meet the needs of the largest gold seekers, including India and the central banks . The latter use gold as capital reserves.

For many investors, gold is a safe bet. In particular, you can use it to carry out an investment diversification strategy . Indeed, the value of this golden metal increases regularly, thus offering you a good hedge against the systemic risks of the financial markets.

In addition, gold is associated with several types of values, and has been for thousands of years. It is both solid and timeless. It is also generally equated with money and power. So you can consider it as a trustworthy tool.

Another important point: gold is not very sensitive to economic conditions that could reduce its value. This simply means that its quotation does not depend on other currencies or on the activities of the State and companies.

Gold allows you to make different types of investments. It comes in many forms, including physical gold. Also called investment gold , it includes precious metals in the form of coins, ingots, ingots and bars. Their weight varies from a few grams to several kilograms. Note that although jewelry is gold, it is not considered precautionary savings.

READ:  What is the difference between monthly salary and hourly remuneration?

There is also paper gold which is similar to a financial product reproducing the price of gold. This includes exchange-traded funds (ETFs), often linked to gold stocks held by banks. This type of investment is more suited to short-term speculation.

Generally, you can buy gold from different types of operators such as banks, specialized online platforms and brokers (in physical or online trading).

You can buy or sell bars, bars and gold coins. However, unlike coins, other forms of investment gold follow world gold prices. Your objective then is to earn a return by buying or selling physical gold in different financial markets.

Health crisis: is it time to trust gold?

The current health crisis necessarily leads to a global economic crisis. This, however, favors a gradual increase in the value of gold . The latter is expressed in quotation or course. Indeed, the operators of the financial world use it to calculate and analyze the variations as well as the possible fluctuations. The price of gold changes according to currency exchange rates, demand and other values.

If you are an individual, you will certainly find it difficult to evaluate the quotation of gold yourself . Do not hesitate to call on a professional or use specialized platforms. Both are able to provide you with relevant and reliable information on current gold prices. In reality, the values of gold are calculated from the prices applied worldwide and the interest rates imposed by certain major financial institutions.

Thus, to follow the evolution of the market in real time, it is preferable to have an account linked to the price of gold , instead of a classic account. This allows you to create a savings strategy to generate potential profits. This depends on your choice of acquisition, as well as the quotations in force at the time of your investment.

READ:  PGE and ESCadrille, a common commitment

Do not hesitate to compare the different offers offered by counters and shops specializing in the sale of gold. These prices differ mainly depending on the form of the gold, its purity, its weight and its face value. Thanks to this data, you can anticipate fluctuations and think about the amount you want to invest.