Since 1971, with the Bretton Woods agreements, gold has had an average annual return of around 10%. For example, in 2004 the price was 10,000 euros per kilogram, in 2023 it is 56,000 euros per kilogram! Do the math!
Gold tends to perform best during times of crisis, as was the case with Black Monday or the financial crisis of 2008-2009, when everything collapsed except for the precious metal. Indeed, when financial markets are in crisis, the stability of gold as a safe haven asset prompts investors to shift their focus from risky securities to the yellow metal.
It’s no coincidence that we refer to it as a “safe haven” investment – it is the type of investment that, despite periods of economic uncertainty, political instability, or high inflation, maintains its value over time. Gold has always been considered the safe haven asset par excellence.
What are the best forms of investment? Say no to the toilet paper of ETFs, but only physical gold in the form of bars and coins (Sterling, Marengo, or Krugerrand). In the last ten years, small bars and coins have represented 27% of the global demand for gold. There must be a reason, right?
Especially Russia and China are accumulating gold bars. China is the world’s largest gold producer, followed by Australia, Russia, the United States, and Canada. China and India together account for 50% of the world’s demand for gold. Indeed, China is not only the world’s largest producer of gold but also the biggest consumer.
PS: Indeed, keeping money in the bank not only makes no sense, but it is also much riskier!