Why do we say that gold is a safe haven ?

Every day in London, the London Bullion Market Association sets the price of gold according to several indicators:

• Supply and demand: In recent years, China and Russia have increased gold imports to increase their reserves. Central banks and other nations are also buying gold en masse;
• The economic policy of central banks;
• The various crises.

Gold is therefore completely independent of the stock market and the economic health of companies. Once determined, the price allows you to specify the price of gold objects.

Gold is a long-term investment product that allows you to secure your money. Indeed, when the financial markets collapse, the various national economies slow down or the dollar rate is destabilized, gold plays a protective role.

The results of the American or Chinese elections, the surge in commodity prices, or even the rise in government bond rates, are leading to a flight of investors towards safer values, such as gold. Indeed, gold has the advantage of being stable over time. Capital gains are difficult to make during resales, but if you don't make money, you don't lose any when the stock market economy goes off the rails.

This is also what happened at the start of the war in Ukraine. Financial markets were partly paralyzed and gold reached its highest level in several years.

Interest rates are increasing, leading to a reduction in real estate market activity. Inflation continues to soar and stock prices tend to fluctuate in the face of so much uncertainty. Investors, to protect themselves and their assets, then opt for purchasing gold. Thus, the investments are shared and you pool the risks. In the event of a capital loss on a financial product, gold offers you an economic parachute.

Investors adopt a four-pillar strategy:

• Government bonds;
• Shares;
• Liquidity;
• Gold.

If one falters, the others stabilize and avoid excessive losses. Gold should therefore not be seen as a profitable investment. It can be, but its role is above all to secure your savings in the long term.

You would like to know more about gold ? Come and discover all the specificities of gold at the Gold Union agency or via our e-commerce site. Our Gold Union experts and specialists are waiting to present to you all the advantages of investing in gold and diversifying your portfolio.