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The prospect of a hard Brexit is raising concerns among investors. Consequence: gold prices hit their highest for six months
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Gold prices are on the rise again. They have just reached their highest in six months. An increase undoubtedly due to the prospect of experiencing a hard Brexit. It might seem inappropriate to talk about the price of gold in the midst of a social crisis in France. What is interesting is precisely to understand the mechanism and to draw possible conclusions from it. If you want to buy an ounce of gold (about 31 grams of gold), you currently have to shell out 1,095 euros. For the one kilo ingot, it will therefore cost you a little over 35,000 euros. Since September, the price of the yellow metal has climbed more than 8%. Despite the ups and downs, it has just signed its best year since the 2010 crisis.
The prospects for Brexit, as difficult as they are, do not explain everything. Traditionally, gold is a safe haven. He is popular when the news is anxiety-provoking. At the moment, he is having a great time. There are also international geopolitical tensions, the ultra-tense trade relations between the United States and China; financial markets which are unstable for the same reasons; the different budgetary situations in Europe (especially in Italy), the social crises… not to mention the serious fluctuations which are not likely to reassure the evolution of the American economic engine. And it’s not just gold: we are currently seeing the prices of other precious metals such as palladium, a rare metal used in smartphones and cars in particular, soar.
Gold does not work, it sleeps, it reassures. For those who have the means, it allows you to diversify your investments but is not remunerative like other savings products. Not only does it earn nothing but, in addition, is not used to finance business investment. Finally, it is expensive in conservation. Child care costs are around 2% or more per year. As for resale, it is taxed and the taxation is not light: the choice must be made between a flat-rate tax of 10.5% on the property sold, or a tax of 30% on the capital gain realized during the sale. the sale. So refuge and reassuring. In reality, the value of gold reflects the anguish of modern societies. Suffice to say that it has not finished being popular in the 21st century.