With anxiety-provoking advertisements and a semblance of the end of the world, the new announcement of generalized confinement has sounded like an end to the French population. Far from delighting everyone, it can turn out to be a positive one and potentially pay off big, at the very least, avoid getting lost too much.
Between the unprecedented rise of Bitcoin (BTC) for several weeks and the soaring of gold, the two best safe havens will not have escaped anyone and anyone would say that periods of crisis are the most favorable for investment. in such values.
As the Covid-19 crisis is in full swing and the recession begins to weigh on households, gold, this little yellow metal, has never been so fervent among investors.
In this context, how can you turn your confinement into a golden opportunity? We explain everything in this article which should make you smile again, at least for a month.
Warning : This article is brought to you by the company Vera One. Crypto investments are risky by nature, do your own research and invest only within the limits of your financial capacity. This article does not constitute an investment invitation.
Gold, a collective fascination for millennia and even more so in times of crisis
We cannot begin an article like this without recalling, as we had already described in our article dedicated to ways to invest in gold, than gold has fascinated humans for millennia and that is not about to change. Born about 5000 years ago from the discovery of deposits in Egypt and still traded today on many markets, gold has kept its superb and remains the synonym of confidence and solidity in the eyes of all … even more in times of great uncertainty and declining confidence in financial markets.
To take our thinking further, we can even say that gold has become over the centuries the alpha and omega of money creation: until 1971 and to use a famous movie quote it was sort of “no gold, no banknotes”. It is by becoming this indispensable guarantee for the creation of money that gold has forged its reputation as a safe haven.
Let us remember a few historical episodes which have confirmed the tendency according to which periods of crisis are always conducive to golden investments :
- First, back to the two oil shocks of 1973 and 1980 : amazed analysts see the price of an ounce of gold exploding from $ 37 in the early 1970s to $ 200 after the shock in 1974. And just after the shock of 1980, the ounce of gold took 2000% to hit over $ 850 at its peak.
- Closer to home, the 2009 crisis caused a wave of major panic around the world and in particular among the French who then bought bar gold, holding in 2011 more than 6.1 tonnes of gold in the form of ingots and coins.
I don’t know about you but to believe the analysts of the time, I have the impression that history is repeating itself even if the reasons change, this new global turbulence which has continued to shake the financial markets could well explode the price of gold and therefore the demand for purchases. In any case, this is the trend that is taking the price of gold for months, having broken records this summer, reaching on August 13, 2020 more than $ 2,000 an ounce of gold. Don’t worry if you see the ounce of gold drop slightly on day 1 of containment, the finest analysts tell us in the atrium that the unprecedented rise in its price over the year should continue its momentum once the shock of past announcements.
Containment and gold: your lucky asset
If the rise in the price of gold has a real direct link with the health pandemic and the resulting financial crisis, it also has its origins in the multiple turbulences of the moment: negative interest rates, rising unemployment caused by the decline or cessation of many activities, geopolitical tensions and more recently the American elections. This is even a survey conducted by OpinionWay in 2019 for AuCoffre.com which reveals that 73% of French savers believe that the yellow metal represents a very relevant savings solution to protect their savings.
“In the middle of winter I discovered in me an invincible summer”
This may be the best time than that of confinement and global turmoil to acquire your precious and thus shelter from future waves of any kind elsewhere.
Before going into the details of your gold containment: let’s quickly go back to how the gold price is established. Every day, the London Bullion Market Association (LBMA) gives an official quotation in dollars and euros, the same for the whole world, on the basis of one ounce of gold or 31.10 grams of your precious. Since it is a safe haven, its price will tend to rise or fall depending on specific events ranging from cultural festivals to economic or political crises.
But be careful, as a good seasoned investor, pay attention to fluctuations in the price of gold, which also vary depending on the activity of the jewelry industries, mining and budgetary and monetary policies.
It must be said that the previous lockdown validated the trend, as a large number of investors have chosen gold as a refuge for their savings. You will understand, containment is not all bad. And beyond this exceptional situation, it is also the very accommodating monetary policy of central banks in recent months that has intensified the use of gold. After having accumulated most of their reserves in dollars, they are also turning to the precious metal to diversify their heritage with this equally universal asset.
Take a closer look:
What if now is the real gold rush?
Rather physical gold or paper gold? how to buy gold in a hostile environment
Now that you know your next activity in the four weeks of autarky we have yet to cash in, you are probably wondering where to turn? How to buy gold? Whose ?
We were already telling you how to invest in gold in 2020, so we advise you to take a look. Now remains the great security dilemma of the old and the risk of the modern.
As we know, last March, the containment measures strongly influenced the production of gold, and in question, the decline in mining activity and the closure of non-essential businesses no longer allowing certain wholesale markets to access you. sell the precious yellow metal.
So, in the battle between physical gold and paper gold, who will be the big winner of the 2020 edition?
On the one hand, paper gold, a stock market asset with a short-term return made possible by buying and selling gold on stock markets.
The other, physical gold, nothing more palpable than beautiful ingots, ingots, gold coins including the most famous Napoleon for measuring the precious metal: here we are more on a precautionary savings.
In the latter case, the question of storage and conservation in a safe place arises. : at home under a tile, in a safe at the bank, by companies specializing in security, there are many means … We will not go back to the fabulous story of two children who discovered, during confinement in the family home, two gold bars under Grandma’s bed which they will then sell at auction. So, a word of advice, check before you leave the premises!
So, the question of what to choose between physical gold and paper gold, it all depends on your initial objective between speculating or ensuring a store of value.
All in all, once we’ve said that, the real question remains that of how to obtain gold in 2020 in a hostile environment, that is to say in confinement, and there, you have several choices such as buying online or calling precious metals specialists directly.
We, trendsetters, we preferred to look at innovations already thought for several years as the payment solution Veracash, a pioneer in the field who had already thought of digitizing and dematerializing the purchase of gold using a card and we told you about it in the first article dedicated to the alternative investments platform.
Indeed, as an avant-garde visionary, Jean-François Faure had thought of everything : allow you to easily invest in physical gold and simultaneously allow you to associate this reserve of precious material with a bank card, all to ensure your daily payments, smart!
And it’s not for nothing that the latest addition to the Aucoffre.com family has continued to explore the infinite possibilities of gold by exclusively offering you THE anti-covid solution to invest in gold while being visionary. on crypto-assets, I named: VeraOne.
VeraOne: the solution for buying gold while respecting barrier gestures and investing in the future
VeraOne, for the most frequent readers among us, you are starting to know them.
If I tell you Tokenized gold you tell me? VeraOne!
Indeed, with the superb idea of marrying the oldest safe haven in the world and crypto assets, arguably the future of our era, VeraOne has established itself as the good idea of the last decade.
And you will quickly realize that containment and gold have never been so close thanks to them, take a look:
- VeraOne is a token fully backed by physical gold held in a safe, therefore no risk of being subjected to market fluctuations
- Investing in this token is both invest in a safe haven and benefit from the intrinsic protection of a stablecoin but also act in a tamper-proof manner the ownership of your quantity of gold
- VeraOne’s mission is also to enable the advent of a new exchange currency thanks to cryptocurrency even in unbanked countries
- In short, VeraOne, in 2020, means buying gold using a token, in a secure, tamper-proof way, to build up assets and / or exchange money, all without contact and in a dematerialized manner, so we say what about it the government ? All this, without needing a certificate limiting our outing to 1 hour within a perimeter of 1 km, the gold is infinite and it will remain so.
You are now ready to start containment more calmly and to examine the price of gold and the potential of the famous yellow metal in times of crisis. Don’t hesitate to take a tour of the alternative investment platform where you will learn how to invest in gold, the genesis of the oldest safe haven, its comparison with Bitcoin, and much more … stay tuned! and especially #stayathome.
Karen is passionate about new technologies in general, and blockchain in particular! Finding out about trendy news, the latest market developments and the treasures of the ecosystem, she is happy to help you discover this universe in all its colors.