The savings reached exceptional rates during the health crisis. To limit traditional bank savings, subject to inflation, and to invest in a safe and practically insensitive value to market fluctuations, investments in commodities such as gold or silver can be found as ideal solutions.
What are the advantages of each of these precious metals that have always accompanied us? What to privilege between the purchase of gold and silver metal? Let’s take stock of these hallmark values.
Gold, is a safe bet
Since it was discovered, this metal has not ceased to arouse enthusiasm. From Antiquity and whatever its origin, in Europe, Asia, or the Americas, it arouses this fever of gold illustrated many times.
Pure gold has also served as a standard by becoming the reference value of the dollar for centuries. It thus provided access to certain economic stability and easier international trade. It was at the end of the Second World War that the gold standard signed the end of its reign with the Bretton Woods agreements and that the dollar standard imposed itself. With American hegemony less strong in recent decades, the gold market has regained prominent activity.
A price that has been rising for almost twenty years
It is especially since 2020 that this trend has manifested itself. It should be remembered that the gold bar was estimated at €8,000 at the dawn of the 21st century, to be around €50,000 today, a real record! We can therefore say that its quotation has been multiplied by 7 in just 20 years, which represents an incredible progression.
The year 2020 alone has seen the precious metal surpass the $2,000 per ounce mark of 31.1 grams. In question, is the decline of the dollar on the international scene. It lost almost 10% of its value against the euro, falling to a value of 0.85 euro for 1 dollar in April 2020. The Covid-19 crisis went through this.
The progressive global vaccination as well as the appeasement of the financial markets have contributed to raising the price of the dollar in 2021. Nevertheless, choosing gold as a haven remains the appropriate response to crises that could multiply in the future.
Invest in gold, for more security
If we look at the curve of the price of gold in recent years, we see a constant progression. It is this low volatility that guarantees a secure investment in 2021. What’s more, it ensures a better distribution of values. Whether for gold jewelry, coins like Napoleon, ingots, or even ingots, they are easily stored and are not subject to the vagaries of stock market prices.
Indeed, the price of gold is attributed to the fixing of the price of gold, the dedicated procedure to fix the reference price of precious metals. This is how gold and silver are assigned a value, as are platinum and palladium. This procedure results from the balance between supply and demand: it is the LBMA, the London Bullion Market Association, representing the big banks but also the manufacturers and merchants of precious metals who establish the prices at the rate of two courses per day.
Money, within reach of all budgets
Silver, of lesser value from its introduction in trade and exchanges, has also become a reference metal, whether for the production of jewelry, silver coins, or more recently in the composition of certain digital devices. . It has established itself in the precious metals market for a long time.
Focus on the price of silver
This has remained fairly stable in recent years but the year 2020 has seen it double in value. It was especially at the start of 2021 that the price of silver soared. At the origin of this outbreak, the prices of silver mines rose in Australia, China, and London and sparked movements of small investors. They bought the gray metal in large quantities to bring its price to more than 30 dollars an ounce. Unheard of for more than eight years with a rate that has climbed by more than 16%. Alongside this spectacular rise, gold is a good second.
Invest in silver
Choosing physical silver rather than gold remains an attractive option. Its course allows small carriers to build up a fairly substantial “mattress” quickly. However, storage costs are still more expensive than gold, due to the volume of silver needed to achieve a similar value in gold.
