On Monday, the Russian Central Bank decided to suspend its purchases of gold from banks in the face of strong public demand for the purchase of physical gold bars.
In France, the gold trading expert since 1933, Godot & Fils is seeing a spike in online and in-store purchases.
A practical and easy purchase, linked to the fear of inflation and the current geopolitical instability, according to economist Véronique Riches-Flores.
If the outbreak of the war in Ukraine caused the price of black gold to explode, yellow is far from being outdone.
While the ounce of gold (about 31 grams of the precious metal) was around 1,800 US dollars at the beginning of January, it reached a first peak on February 24, the day of the Russian invasion, then a real peak at the beginning of March at around $2,050.
The rise in prices stems directly from an increase in gold purchases, "often closely linked to a situation of panic due to a geopolitical or financial crisis", analyzes the independent economist Véronique Riches-Flores.
It turns out that the conflict in Ukraine brings the two together with both instability on the continent and the collapse of European stock markets.
In Russia, the population's demand for the purchase of physical gold bars has increased so much that the Russian Central Bank even decided on Monday to suspend its purchases of gold from banks so that they can meet the demand of individuals.
In France, Jonathan Fhal, director of Godot & Fils, a company specializing in the trading of precious metals, notes the same enthusiasm in the 45 shops that make up the group.
"Purchases at the counter were multiplied by four in March and by ten via our internet platform", he assures, confirming that this brutal rush on the noble metal hides hasty purchases linked to events in Ukraine.
The same phenomenon had already occurred during the covid-19 epidemic, Brexit and the subprime crisis.
“People are afraid for their savings, for their capital,
The King of Coins
But why gold rather than cryptocurrencies for example?
Firstly because gold reassures by its stability.
“It is a safe haven asset, partly because it is tangible and retains its value, especially in the face of inflation, explains Véronique Riches-Flores.
In this, it is less exposed to periods of crisis.
Unlike virtual currencies or stocks, you don't buy gold hoping to make a profit later.
"It's not at all a speculative purchase, but a means of securing one's savings," comments Jonathan Fhal.
People are happy if they resell it for the same price twenty years later.
Far from the vertiginous rises and falls in the price of cryptocurrencies, that of gold still varies slightly, despite occasional peaks.
“Gold has always been seen as a means of hedging against the risks of inflation and the loss of value of the currency,” adds Véronique Riches-Flores.
But last Sunday, the Banque de France indicated that it forecast inflation “high throughout 2022” at 3.7% or 4.4%.
Easy and convenient
Gold is also a safe investment, very accessible.
When a real estate purchase requires a good file, a loan, a contribution, notary fees and months of waiting from the signing of the sales agreement, acquiring gold requires an identity card and a few minutes in his day.
The price varies according to its weight and there is something for almost all wallets.
Moreover, in the Godot & Fils boutiques, it is still Napoleon's 20-franc coin, today estimated at nearly 360 euros, which has the greatest success.
“We meet all the profiles of buyers.
It goes from business leaders and traders to plumbers, waiters and teachers, ”says Jonathan Fhal.
Gold is also preferred over other materials like silver, because it is not bulky.
Sales companies even offer their customers to take care of storing it directly in their safes or in the ultra-secure zone of Port Francs, in Geneva.
You can also decide to hide it at home, under a pillow or simply in a pack of cigarettes.
Yes, if we are used to seeing ingots the size of construction bricks in films, know that a 1 kg ingot is about eight centimeters long by four wide and already costs around 60,000 euros.
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