Gold price at the highest level for 5 years: "This is proof that we are in a world that has become unstable"

Each morning, Axel de Tarlé decrypts one of the most important economic news of the day.

Around the world, it's the gold rush. The precious metal is at its highest level for 5 years.

We have exceeded the $ 1,400 mark an ounce. It is not a good sign. Gold is what is called a safe haven. With this simple idea: if everything goes wrong, it's better to have gold. A 1 kilo gold bar is very small, it fits in the pocket, it's barely bigger than a lighter - and it's worth 40,000 euros. With that, you can try to rebuild your life. When gold climbs, it means that we start to be afraid, we want to protect ourselves.

But to protect yourself from what?

First of all, Donald Trump, who was 10 minutes late Thursday night, canceled a strike against Iranian sites. Admit that a military confrontation between Donald Trump and Supreme Leader Ali Khamenei is rather scary. We are also trying to protect ourselves - and this is completely new - against the dollar. Until now, everyone accepted the idea that the dollar was the currency of the world. Indeed, people are tired of this domination, especially as the United States uses the dollar to blackmail and to prohibit trading with this or that country, on pain of punishment.

So, what do we observe? This is called the "dedollarization" of the world. Everywhere central banks tend to sell dollars, and buy instead of gold. Russia's central bank bought 272 tons of gold last year. Sovereignty is gold, not the dollar. And then, third phenomenon that explains this attraction for gold. A gold bar, it pays nothing: it does not make small, it is a zero investment. Except that today, with interest rates at 0%, all investments have the same problem: nothing pays.

So, in these conditions, why not buy gold: it is a safe haven, an element of sovereignty, and finally, it is not such a bad investment.

What does this translate?

It's a pretty desperate sign. Rather than invest in the future, build schools, clean technologies. We buy gold to protect ourselves in case of a glitch. This is proof that we are in a world that has become unstable.