SUMMARY :

1) Why invest in physical gold?

 

Unlike investing in intangible gold (certificates, ETFs, etc.), which is linked to changes in the financial markets, investing in physical gold offers the advantage of physical ownership of the asset, which is particularly important as a safe haven in times of economic or political uncertainty.  

Unlike traditional financial assets such as equities or bonds, gold is not directly dependent on companies' economic results or local political decisions. It is a tangible asset, which generally retains its value over the long term and offers effective protection against inflation. 

Physical gold also makes it possible to diversify an investment portfolio, thereby reducing overall risk. Historically, gold has shown little correlation with traditional financial markets, offering stability even when equity markets are volatile or falling.  

Finally, it is worth noting that physical gold is free from counterparty risk, unlike investments in ETFs or other derivatives.

 

2) How do I buy gold?

 

Apart from jewellery and works of art, physical gold is bought mainly in the form of bars, ingots or investment gold coins. 

Bullion is generally sold by a specific weight. They can be 1 kilo, 250 grams, 100 grams, 20 grams or even an ounce. This is an ideal solution for making substantial investments.  

Gold coins have the advantage of being easy to transport, and their numismatic premium potential. 

Whether you are buying or selling gold, it is essential to use the services of recognised and certified professionals. This may be a bank, an online platform or a precious metals dealer such as GODOT & FILS.  

As a buyer, you should pay particular attention to the following points:

- Check for a certificate of authenticity,

- Find out about the seller's reputation

- Pay attention to the purity of the gold purchased (carats).

- Don't forget to find out about changes in the price of gold.

- Understand the tax implications of buying and selling gold.

3) Current trends in the gold market

 

As of the first quarter of 2025, the gold market has been particularly buoyant for many months thanks to the surge in the price of gold. The rise in the price of gold can be explained by a number of factors:

- President Donald Trump announced massive tariffs on all US partners on Liberation Day.  

What had previously been presidential campaign rhetoric has now become reality. The uncertainty surrounding these announcements has sent stock markets around the world plummeting. Friday 04 April 2025 will be remembered as ‘Black Friday’, the worst stock market session since the COVID pandemic in March 2020 (between -5% and -10% for the main world indices).

- President Trump also openly opposed the Chairman of the US Federal Reserve (FED), Jerome Powell, describing him as ‘a huge loser’ and at one point wanting to ‘fire him as quickly as possible’. These comments were particularly destabilising for the markets, and constituted a serious attack on the independence of this institution.

- According to the International Monetary Fund (IMF), the deterioration in economic growth in various countries is already beginning to be felt. The IMF has revised its outlook for global growth in 2025 to 2.8% from 3.3% in January.

- Gold is also denominated in US dollars. The dollar fell sharply in the wake of the tariffs and the global trade war that threatened to ensue. 

In the first quarter of 2025, the dollar fell by 6.2% month-on-month against the euro, a very significant decline on the foreign exchange market. De facto, a fall in the greenback makes gold more attractive to investors whose reference currency is not the dollar.

- For many months now, we have also seen a significant increase in purchases of physical gold by central banks, particularly in China, Russia and other emerging countries, which are seeking to diversify their monetary reserves and protect themselves from fluctuations in the US dollar.  

At the same time, retail demand for gold coins and bars remains strong, confirming the enduring interest of private investors in this asset. 

As you can see, all these factors reinforce gold's appeal as a safe-haven asset in the eyes of investors. Fears of a global trade war have effectively persuaded investors to sell their risky assets (notably equities) to protect themselves with gold.

4) Practical advice on investing in gold 

 

To invest wisely in physical gold, a number of best practices should be observed: 

- Favour internationally recognised products: Ingots certified by the London Bullion Market Association (LBMA) or coins such as Krugerrand, American Eagles or Canadian Maple Leafs. 

- Secure storage: Physical gold should be kept in secure bank vaults or with specialist service providers. Avoid storing it at home to limit the risk of theft or loss. 

- Compare prices: Before buying, systematically compare the prices offered by different sellers to minimise the purchase premium and optimise the total cost of the investment. 

- Avoid impulse buying: Invest gradually, staggering your purchases to take advantage of market fluctuations and reduce the risk of poor timing.

 

5) How much should I invest in gold?

 

When it comes to investing, it's generally accepted that you shouldn't put all your eggs in one basket. This also applies to investing in gold. Solid, long-term performance can only be achieved by diversifying your financial and non-financial assets. This has the virtue of smoothing risk with an asset that will outperform another asset in difficulty at a given time. 

We can't say exactly how much you should spend on gold, because there are so many parameters to take into account. First of all, buyers need to define their risk profile and investment time horizon. 

From there, it is possible to define a “typical profile” of the investor and the sums that can be spent to build up a pocket of gold assets.

- Allocating between 5% and 15% of the total portfolio to physical gold is a good balance in terms of security, diversification and return.

- A 5% allocation is preferable if you have a relatively short investment horizon, in order to focus on more dynamic and riskier assets, which are sources of higher returns.

- A 20% allocation if you are mainly looking for prudence, particularly in a period of political or economic instability.