SUMMARY: 

1) The volatility of the gold price 

 

Physical gold is often considered a relatively safe asset, but its price can fluctuate significantly in the short term. Gold price volatility depends on many economic, financial and geopolitical factors, which can surprise poorly prepared or ill-informed investors. 

Historically, gold has experienced periods of sustained appreciation followed by severe corrections. For example, after reaching an all-time high of over $1,900 per ounce in 2011, gold experienced a rapid and prolonged fall to around $1,100 in 2015. These changes can expose investors to significant losses if they have to sell at an unfavourable time. 

To effectively manage this volatility risk, it is essential to consider physical gold as a medium-to-long-term investment rather than a speculative tool. The adoption of a progressive purchasing strategy, which smoothes fluctuations, is generally recommended. 

 

2) The main risks: theft and loss 

 

Gold, being a valuable asset, naturally attracts coveting. Indeed, investing in physical gold involves specific risks related to its tangible nature, including theft (burglary) and loss (fire, degradation...). 

Physical security and physical preservation of acquired gold is therefore a priority. To deal with this effectively, it is essential to use professional solutions for safe guarding that guarantee not only the optimal protection of valuable assets but also peace of mind indispensable for a serene management of your wealth. 

Two reliable solutions for the safe keeping of precious metals can be considered: 

 

      Gardien’Or 

To meet this safety requirement, we offer our high-end service Gardien’Or, a turnkey solution specialized in the professional guarding of your precious metals. 

Your gold is kept in ultra-secure safes, outside the banking system, in confidential places located in France, Switzerland or Singapore. 

The stored parts are guaranteed not to deteriorate or be damaged, therefore not to lose their value. Likewise, all the metal stored is packaged in individual sealed and numbered bags, so that the traceability of your metal is optimal. 

With our solution you can even consult the list of products that you have placed in custody at any time. This allows you to monitor in real time the fluctuations of all your products. 

Having the physical possession of your metal in our safes, you have the possibility to resell it at any time and at very competitive prices. 

All your investments in precious metals are also fully insured with one of the leading French insurance companies. 

Finally, for more discretion, the metal is stored as a number, so your name does not appear directly at our depository partner. 

 

      Private Safe 

Coffrefortprivé is one of the French references for highly secure private safe deposit services that are permanently accessible to their owners. 

This provider guarantees confidentiality, maximum security, and a flexibility of access particularly appreciated by those who wish to actively manage their investment in precious metals. 

This solution, which is intended for both natural and legal persons, is based on higher standards than those observed by the rooms of bank vaults. It also meets increased requirements in terms of storage certification, remote monitoring and security more broadly. 

In addition, each safe is unique, as is the key to open it, issued in a single copy to prevent any attempt at fraud or identity theft. The agency itself does not hold a key to your safe. 

3) Quality and authenticity of gold: what you need to know to ensure that gold is gold 

 

As with all valuable goods, the risk of counterfeiting does not spare the gold market. To ensure that the gold purchased is genuine and complies with international standards, it is essential to follow certain essential precautions. 

- Buying from a recognized and certified seller is highly recommended. Our expertise will guarantee the purity of gold and its authenticity, thus minimizing any risk of fraud. 

- The use of tests and verification (weighing, magnetic test) are necessary. It is better to call on a professional who can propose more elaborate tests by X-fluorescence or ultrasound for example. 

- Certification is a central element in judging the authenticity of gold. Indeed, each ingot or gold coin must be accompanied by a certificate of authenticity detailing its weight, purity and bearing a unique serial number. The absence of these elements must immediately arouse the investor’s mistrust. 

4) The Liquidity of gold investment 

 

Liquidity refers to the ease with which an asset can be bought or sold on the market without significantly influencing its price. On this point, gold appears to be a particularly liquid asset, especially in times of economic or geopolitical uncertainty. 

 

      High liquidity in global markets 

The World Gold Council estimates that approximately 200,000 tonnes of gold have been mined since antiquity, much of which is still in circulation as ingots, coins, jewellery or official reserves. Such a quantity of gold to be circulated contributes to ensure the fluidity of international trade. 

The gold market is particularly well structured with major exchanges such as the London Bullion Market (LBMA), the COMEX in New York or the Shanghai Gold Exchange. 

Similarly, the rapid growth of gold-backed ETFs promotes this liquidity, which can be similar to that of shares listed on the stock exchange. 

 

      An ever-increasing global demand 

The liquidity of gold is also strengthened by a constant and global demand. Whether for industrial uses, in jewellery, to build official reserves or as an investment asset, gold benefits from a diverse and geographically diversified demand. This feature limits the risks of shortage or one-time illiquidity, even in times of crisis. 

Moreover, as a universal currency, gold is accepted all over the world. It can be sold in most countries through banks, specialist dealers or on secondary markets, which further enhances its liquidity attractiveness. 

 

      Liquidity based on the chosen product 

To optimize this liquidity, it is recommended to choose its gold investment products carefully. Indeed, it is important to differentiate between the liquidity of physical gold and that of paper gold.  

- Paper gold (ETFs, certificates, futures contracts) offers immediate liquidity via the financial markets, but this does not confer the real holding of the metal, which exposes to a counterparty risk, even limited. 

- For physical gold, liquidity can sometimes be less immediate, but again it is necessary to distinguish: 

  • Internationally recognized gold coins (Krugerrand, Maple Leaf, American Eagle) are usually very liquid and can be sold quickly anywhere in the world.  
  • Less well-known coins or bullion of very specific sizes may be more difficult to sell quickly without suffering a significant discount.