Editorial

Most French people concentrate their savings in bank products that offer little protection against inflation, resulting in an invisible loss of purchasing power. Despite its historic role as a safe-haven asset, physical gold remains marginal in portfolios, held back by preconceived ideas and a high level of banking habits. The main mistake is not to save, but not to diversify. Investing in gold helps to reduce risk, preserve capital over the long term and cushion crises, while complementing other financial investments.

In France, saving is almost second nature. Livret A passbook savings accounts, life insurance policies, PEL home savings schemes and euro funds have been the mainstays of household wealth for decades.

However, behind this apparent security lies a less reassuring reality: a large proportion of these savings lose value every year due to inflation, latent taxation or dependence on the banking system...

Despite this, almost 90% of investors continue to concentrate most of their assets in the same investment vehicles.

At the same time, gold and physical precious metals remain largely under-represented in French portfolios, despite their proven ability to preserve purchasing power over the long term.

In reality, the most common mistake is not to save at all, but to save exclusively in vehicles that no longer really protect capital.

1) French savings: abundant, but poorly protected

The figures speak for themselves. According to data from the Banque de France, French savings total a record 6,477 billion euros.

Unsurprisingly, France has one of the highest savings rates in Europe. Yet these savings are massively channeled into products with low real returns.

Excessive concentration on a few products

The majority of households hold :

• One or more regulated passbook savings accounts,
• Life insurance, mainly invested in euro funds,
• sometimes a home savings plan or a PER.

These products have long played their part. But in an environment of prolonged low interest rates, followed by sustained inflation, their effectiveness as assets has deteriorated sharply.

The nominal yield trap

A savings account yielding 3% a year may seem attractive. But when inflation exceeds this level, the real return becomes negative. In other words, the saver becomes poorer without realizing it. This illusion of security is one of the main behavioral biases observed among French investors.

2) Why physical gold is too often wrongly dismissed

Although gold is recognized as a safe haven in times of crisis, it remains marginal in French portfolios. There are several reasons for this paradox.

Persistent preconceived ideas

Many people still associate gold with :

• An investment reserved for the very rich,
• An "unproductive" asset,
• A crisis investment only.

These perceptions no longer correspond to market reality. Modern gold is accessible, liquid and used by investors of all profiles.

A cultural preference for the banking system

French savings are historically banked. The products on offer are simple, automated and reassuring.

Physical gold, on the other hand, requires a voluntary approach:

• Buying,
• Preservation,
• and a thoughtful approach to wealth management.

This autonomy discourages some savers, despite the obvious advantages.

3) Physical gold and precious metals: a different investment rationale

Comparing gold to traditional savings means understanding that these two approaches do not pursue the same objective.

French savings aim for liquidity and simplicity

Passbooks and life insurance are designed to :

• Remain available,
• Offer low apparent volatility,
• Integrate easily into the banking system.

But they remain dependent on :

• Monetary policies,
• The solidity of financial institutions,
• Future taxation.

Physical gold aims to preserve capital

Gold does not promise an annual return. It does, however, protect against :

• Inflation,
• Currency devaluation,
• Systemic financial crises.

It is not dependent on any government, bank or issuer. This independence is its major asset strength.

4) An allocation error, not a poor savings choice

The mistake made by the majority of investors is not in holding passbook savings accounts or life insurance. It lies in the total or near-total absence of physical gold in their assets.

The risk of mono-exposure

Concentrating 100% of your savings in euro-denominated financial assets is tantamount to making an implicit bet:

• On monetary stability,
• On inflation control,
• on the long-term soundness of the banking system.

Yet economic history shows that these parameters are far from guaranteed over the long term.

Gold as a wealth buffer

Including 5%, 10% or 15% of physical gold in an asset portfolio helps to:

• Reduce overall volatility,
• Limit losses in times of crisis,
• Preserve purchasing power over several decades.

This cushioning role is precisely what traditional French savings schemes lack.

5) Gold versus equities, ETFs and life insurance

The point is not to pit gold against other investments, but to put each asset in its rightful place.

Equities and ETFs: performance, but violent cycles

Equity markets perform well over the long term, but are prone to sharp downturns. For ill-prepared investors, these phases can provoke destructive emotional arbitrage.

Life insurance: a tax tool, not absolute protection

Life insurance remains an attractive option for inheritance and tax purposes. But most of its assets are invested in financial markets or sovereign debt, which limits its protective role in the event of a systemic crisis.

Physical gold: stability and independence

Gold does not seek to beat the markets. It aims to hold its own over time, whatever the economic conditions. This function complements, not competes with, other asset classes.

6) A progressive, accessible approach

Contrary to popular belief, investing in physical gold does not require a large amount of capital.

Formats to suit all profiles:

• Ingots weighing just a few grams,
• Recognized bullion coins,
• Purchases split over time.

This flexibility means you can integrate gold gradually, without upsetting your budget or giving up liquidity.

A healthy asset discipline

Regular investment in gold requires long-term thinking. This discipline is often beneficial to young investors (link to article 01 January to be inserted), who avoid the temptation of excessive speculation.

Conclusion

The mistake still made by the majority of French investors is not to save, but to believe that traditional savings are sufficient to protect wealth. Inflation, currency uncertainties and dependence on the financial system are undermining what have long been considered safe investments.

Gold and physical precious metals are not a marginal alternative, but an essential asset complement.

They offer what conventional savings no longer guarantee: real long-term capital protection.

Rebalancing your assets with physical gold does not mean giving up on financial modernity. It's a return to a tried-and-tested approach to wealth management: that of diversification, prudence and inheritance.