Since its creation in 1999, the euro has gone through a phase of appreciation and then decline (the eurozone debt crisis), before stabilising thanks to the actions of the European Central Bank and member countries. However, the war between Ukraine and Russia has led to a further depreciation of the European currency.

What are the causes of the weakening of the euro since the war in Ukraine? 

The Russian military intervention in Ukraine is driving up commodity prices, but it is also causing an energy crisis in Europe.

As a result, the European Union imported almost 45% of gas and 30% of oil from Russia. Europe has therefore faced a major energy and economic shock since the outbreak of the war between Ukraine and Russia.

It is also worth noting that some investors have withdrawn from their European positions because of their geographical proximity to the war zone.

Moreover, all these factors add insecurity to the financial markets and slow down growth in the euro zone. As a result, the euro is losing its value and is less sought after on the money market.

Gold, a safe haven in times of war 

As is often the case during a major crisis, gold remains a safe haven.

Indeed, buying gold, or silver, makes it possible to freeze the purchasing power of one's assets. An ounce of gold, regardless of its value in currency, remains an ounce of gold.

Moreover, it is likely to continue to be exchangeable for the same asset, whether before or after the war between Russia and Ukraine.
The same cannot be said for the value of the euro and the Russian rouble, which are fluctuating during this global crisis.

The Russian currency has reached its highest level this year against Western currencies, but this is largely due to the increase in the value of gas and oil exports.

Therefore, in an inflationary global context revealed by the war in Ukraine, gold is more than ever the safest savings diversification asset.

In the face of increasingly toxic or uncertain stock market values and assets, many financial advisors and wealth managers are advising their clients to diversify their savings and financial assets by buying gold. The purchase of gold and silver should therefore be done by following the gold price in euros.