How to fight financial crises with gold ?

The overall economic situation is unstable, due to several financial and geopolitical unrest. In the United States, several banks have failed, including SBV and Signature. Now, small and medium-sized financial institutions are under threat, which would disrupt the American economy. In Europe, Credit Suisse was bought by UBS, and Deutsch Bank is experiencing difficulties.

In this context, the European Central Bank revised the key rates upwards. In other words, national banks borrow more expensively, which leads to an increase in interest rates for individuals and professionals. As for real estate, the sector is being hit hard by the growth in rates, which are preventing certain households from accessing property. As a result, sales slow and prices fall.

In addition to this reduction in household borrowing capacity, the euro zone is affected by high inflation. The currency therefore loses its value and the prices of vital foodstuffs explode. At the same time, the conflict in Ukraine is disrupting gas supplies. As electricity is indexed to the price of gas, energy is becoming more and more expensive.

The 2023 international financial crisis has led states and individuals to invest in gold. Central banks have increased their stocks, to cope with a possible decline or disappearance of the currency.

Gold is considered a safe haven because of:

• Its stability over time;
• Its price: per ounce of gold is determined outside the stock market;
• Its liquidity: for the  gold ingot  and the lgold ingot.

Thus, the price of gold remains stable despite crises, and tends to increase during periods of inflation. In 1970, an ounce of gold was worth 35 dollars, now an ounce is priced at more than 1,800 dollars.

However, as a safe haven, gold does not generate regular dividends or profits. During the sale, you have the possibility of recovering your investment, with a possible capital gain.

Gold represents a strategic asset in the fight against inflation. Investors who buy gold are protected, because the value of the ounce of gold does not depend on banks or the stock market. Indeed, the LBMA sets the spot price of an ounce of gold based on supply and demand.

By buying gold, you preserve your money. If the value of the currency falls, you are not impacted. Once the crisis has passed, you have complete freedom to sell your gold. Favor ingots, which are easier to resell.

You can therefore make a  gold and silver purchase, with the aim of protecting yourself from inflation and the loss of purchasing power. You can hold gold at home, in a safe or deposit it in the safe of a specialized private company. It is one of the most secure investments in the long term, and allows you to diversify the assets of a portfolio.

At Gold Union, we offer a wide range of gold and silver bars and ingots. You can make an appointment at one of our agencies to find out about the investment solutions suited to your needs. In addition, our customers voted us “Best Price on the Market”!