Nicolas Perrin https://goldbroker.com/author/nicolas-perrin In 15 days, the price of an ounce of gold in euros has risen from €1555 (first fixing on February 24 in London) to €1443 at the time of writing. With a low of €1437 per ounce, this represents a drop of 7.59%. And, since March 6, the price seems to have started to fall again. Should we be worried about this? Gold price in euros since January 1 As the title of this post suggests: not at all!! But you may prefer a reasoned response. Let's start by placing the last movement of gold in its global context. CORONAVIRUS AND FALLING OIL PRICES: WHEN TWO BLACK SWANS MEET After a calming 2019 in which the next day's scenario was more or less the same as the previous day's scenario on the equity markets, 2020 is proving to be the best year since 2008 in terms of entertainment. Why do we love markets? Simple. Because it's the biggest show on earth. — Sven Henrich (@NorthmanTrader) March 10, 2020 In particular, Monday, March 9 set a series... Wed, 11 Mar 2020 20:38:13 +0000 https://goldbroker.com/news/gold-in-euros-is-declining-should-we-pay-the-slightest-attention-to-it-1783 Not content to have surpassed its all-time high from October 4, 2012 to the end of August, the euro-denominated ounce of gold has again made its mark. At the time, the 1,380 € resistance was only briefly breached, with the price then correcting until mid-December. This was followed by an upward explosion which finally allowed the ounce to firmly establish itself above 1387-1414 € in the week of January 20, turning this zone into a support. Since then, gold in euros has been navigating in unexplored lands. At the beginning of February, its ascent went wild, bringing the price to over 1555 € at the first fixing on February 24 at the LBMA. At the time of writing, the price has stabilized at around 1515 €. GOLD IN EUROS: +11.6% SINCE THE BEGINNING OF THE YEAR! This breakthrough is so remarkable that this time I even found a French media outlet that deigned to title not on gold quoted in dollars, but on gold in euros. Let's hope it lasts... "Gold: A gold in... Wed, 26 Feb 2020 15:53:23 +0000 https://goldbroker.com/news/new-all-time-high-for-gold-in-euros-1767 On November 1, Christine Lagarde took over from Mario Draghi at the ECB, i.e. where the destruction of our currency is being implemented. What kind of policy can we expect from her, and what conclusions can we draw from it in terms of personal finances? Is the president of the ECB a decision-maker or an implementer? Contrary to a widespread media legend, Mario Draghi did not save the euro. All he did was implement a monetary policy in line with the political choice made in July 2012 by the heads of state or government. The latter had decided by mutual agreement that Greece should remain in the eurozone, which was therefore destined to last and not to explode. The "whatever it takes" statement made by the president of the ECB on July 26, 2012 is therefore merely the translation into the mouth of a bureaucrat of a decision taken upstream by politicians. Mario Draghi is therefore not the "saviour" of the eurozone. At most, he is the one who decided ho... Mon, 17 Feb 2020 08:19:56 +0000 https://goldbroker.com/news/will-christine-lagarde-in-turn-save-the-eurozone-1759 At the beginning of 2019, as after every annus horribilis, forecasters were cautious-even pessimistic. There was plenty on the menu, since the menu was made up of increased volatility on the financial markets (down as much as 20% on the S&P 500 in the last quarter of 2018), increased trade tensions -particularly between the United States and China-, uncertainty over Brexit, and above all, a slowdown in the world economy. The next US recession will start in... — Charlie Bilello (@charliebilello) January 3, 2019 However, 2019 showed that whatever the ingredients of the anxiety-provoking cocktail, for the time being, stakeholders have maintained their confidence in central banks since they abandoned their desire for "normalization". With this major theme of 2018 thus relegated to the drawers of the major monetary planners, 2019 may be remembered as a year where everyone wins. 2019: all lights green Virtually all major asset classes saw their v... Thu, 16 Jan 2020 14:15:36 +0000 https://goldbroker.com/news/2019-the-markets-partied-as-if-it-were-1999-1734 Every year for the past 13 years, Ronald Stoeferle, now accompanied by his partner at Incrementum AG Mark Valek, has published a new edition of his world-famous “In Gold We Trust” report. This publication, which is usually published in late May/early June, is then updated in the fall, giving the reader the patience to wait until the following spring. The Chartbook of the last report was published on October 24, and serves as a support for the lecture tour that Ronald Stoeferle began on November 11 at the Precious Metals Summit à Zurich. Gold and time In a keynote entitled, « Gold, the 7th Sense of the Financial Markets », Ronald Stoeferle starts with the dual observation that: "Nobody is talking about the sustainability of our monetary system"; However, no one is questioning the solidity of gold over historical periods. These findings seem to me to be valid. One thing, however, is clear: when we talk about gold, I think we must distinguish two t... Sun, 22 Dec 2019 06:15:00 +0000 https://goldbroker.com/news/gold-the-7th-sense-of-the-financial-markets-1707 On May 28th, the 13th edition of the In Gold We Trust report written by Ronald-Peter Stöferle and Mark J. Valek (S&V) of the Liechtenstein management company Incrementum was published. One year after the 2018 report that I had the opportunity to mention in these columns, our two Austrians are back in the game to comment on the past twelve months and share with us the scenarios they are envisaging. Reading only the title of the report, we know that this is a very special edition since S&V have chosen this year as their central theme: “Gold in the Age of Eroding Trust”. In other words, for our two Austrians, we are getting closer to the moment of truth when holders of physical precious metals should be able to smile again. 2001-2019: the main currencies devalued by an average of 9% per year compared to the yellow metal If only the yellow metal holders had never lost their smile because, as S&V reminds us, gold has re... Tue, 18 Jun 2019 14:33:38 +0000 https://goldbroker.com/news/in-gold-we-trust-report-2019-gold-in-the-age-of-eroding-trust-1563 This post is the eighth and last part of a series of notes on gold for wealth management advisors. If you have any questions, feel free to contact us at wealthmanagement@goldbroker.com. More information about our business providers program by clicking here. Previously we’ve seen that even though the bancassurers’ “physical gold” offers may constitute an easy solution for wealth management advisors, they are far from offering the kind of services proposed by the precious metals specialists. On top of the fact that their turnkey offers bring a very high level of security for their clients, certain precious metals brokers have put in place a commission program dedicated to WMA business providers. The purpose of this post is to analyse GoldBroker.com’s commercial offer through the lens of what we’ve already established and to introduce the modalities of the commission program for WMAs put in place by GoldBroker. 1. Broker’s duration and reputation GoldBroker Ltd, foun... Wed, 15 Aug 2018 23:15:16 +0000 https://goldbroker.com/news/would-your-commercialization-of-physical-gold-make-you-some-money-1373 This post is the seventh part of a series of notes on gold for wealth management advisors. If you have any questions, feel free to contact us at wealthmanagement@goldbroker.com. More information about our business providers program by clicking here. Previously, we’ve seen that gold – first and foremost a form of anti-crisis insurance – is not a “generational” investment. It is meant to be sold at the right time rather than being transmitted. Previous gold bull markets have seen gold rise from 71% to 590% in US dollars, which leaves a lot of room for progression if the coming months were to validate the hypothesis of a new bull market. But for the yellow metal to constitute real wealth insurance, it must be acquired through a commercial partner in position to offer a certain set of guarantees. The easy solution for any Wealth Management Advisor (WMA): allow clients to buy physical gold via a bancassurer Bancassurers are indispensable partners for wealth management... Sun, 05 Aug 2018 06:52:59 +0000 https://goldbroker.com/news/are-bancassurers-wmas-best-partners-for-buying-physical-gold-1360 This post is the sixth part of a series of notes on gold for wealth management advisors. If you have any questions, feel free to contact us at wealthmanagement@goldbroker.com. More information about our business providers program by clicking here. We’ve seen earlier that mining shares – being first and foremost shares (high volatility, risk of 100% loss) – cannot be put on the same level as physical gold. Neither is the case with ETFs or gold trackers, which expose the saver to at least six risks (ownership risks, multi-ownership risks, intermediation risks, redemption risks, risks arising from conflicts of interest between custodians, and exchange risks) that may be avoided with physical gold. But that doesn’t tell you, however, what kind of returns your clients can reasonably expect when buying this asset class. We’re going to try to answer this question today. “Past performance does not entail the same future performance”: True, but let’s distinguish between shor... Wed, 18 Jul 2018 14:16:51 +0000 https://goldbroker.com/news/what-kind-performance-can-your-clients-expect-long-term-when-buying-physical-gold-1353 This post is the fifth part of a series of notes on gold for wealth management advisors. If you have any questions, feel free to contact us at wealthmanagement@goldbroker.com. More information about our business providers program by clicking here. In our last post, we saw that gold trackers – which replicate the price of gold in a given currency – have three advantages: they are easily accessible, very liquid (in principle) and not very costly. As you know, there exists no financial product entirely devoid of inconvenient, and gold trackers are no exception. A difference in nature: gold trackers expose you to 6 risks that could be avoided with physical gold Those risks are theoretical, of course. However, a string of scandals these recent years (MF Global liquidation in October, 2011, PFGBest scandal in 2012...) that saw precious metals investors left with only their own eyes to cry with are a reminder of having to vet financial partners with the utmost thoroughness.... Tue, 03 Jul 2018 05:01:20 +0000 https://goldbroker.com/news/is-buying-paper-gold-equivalent-to-buying-physical-gold-part2-1343 This post is the fourth part of a series of notes on gold for wealth management advisors. If you have any questions, feel free to contact us at wealthmanagement@goldbroker.com. More information about our business providers program by clicking here. In another post, we saw that mining shares, being shares mainly (with high volatility and the risk of losing 100%), cannot be put on the same level as physical gold. Is it also the case with “paper gold”? Gold products and wealth objectives Gold is a financial asset that can be broken down in three families, so to speak: physical gold, gold mining shares and what is called “paper gold”. Each family of products differs in terms of financial properties (level of risk, yield expectations, level of liquidity and security); one must take a position on the product that is the better suited to one’s wealth objectives. When one wishes to protect wealth against the risks of conjectural and – a fortiori – structural instab... Tue, 03 Jul 2018 04:20:24 +0000 https://goldbroker.com/news/is-buying-paper-gold-equivalent-to-buying-physical-gold-1339 This post is the third part of a series of notes on gold for wealth management advisors. If you have any questions, feel free to contact us at wealthmanagement@goldbroker.com. More information about our business providers program by clicking here. In a previous post, we’ve seen that when your clients live in the euro zone, they have to track the price of gold inAs a wealth management advisor, substituting the easy solution of acquiring gold mining shares to physical gold – whether within a life insurance policy or with an ordinary account – would be a mistake euro – not in US dollars. Only then – when one looks at the price of the yellow metal in the local currency – can one appreciate the financial properties of this wealth insurance. As we were reminded by recent news, it wouldn’t make a lot of sense for an Argentine saver to track the price of gold in US dollars. Since his wealth and his revenues are denominated in Argentine pesos, senior Garcia must look at the pr... Tue, 12 Jun 2018 05:49:59 +0000 https://goldbroker.com/news/is-protecting-your-clients-with-miners-good-idea-wealth-management-advisors-1327 This post is the second part of a series of notes on gold for wealth management advisors. If you have any questions, feel free to contact us at wealthmanagement@goldbroker.com. More information about our business providers program by clicking here. As any asset class, gold has several financial properties. The yellow metal can be used for two different purposes: either as a hedging tool against certain macro-economic scenarios or for portfolio diversification. Its virtues, though, are not the ones frequently mentioned in the media... Gold as a hedging tool against inflation: Myth or reality? An urban legend states that “gold protects against inflation”. In reality, this varies a lot depending on the era and the times. As for France, Thi Hong Van Hoang has focused on the 1949-2009 period in her doctorate thesis, published in 2010[1]. As I wrote in my book[2], “gold has only been profitable on the French market in periods of instability and crises (1973-1982 and sin... Thu, 24 May 2018 07:34:54 +0000 https://goldbroker.com/news/wma-is-buying-gold-a-doom-and-gloom-whim-or-is-it-sensible-wealth-insurance-1318 This post is the first part of a series of notes on gold for wealth management advisors. If you have any questions, feel free to contact us at wealthmanagement@goldbroker.com. More information about our business providers program by clicking here. There is a certain kind of wealth that endures throughout several generations due to the efforts of the people who built it, but also due to the help they’ve gotten from professionals to keep it protected. Each wealth management advisor has thus in mind to have his/her clients profit from a full range of wealth management solutions with the finest products available. I would like to take this opportunity to speak to you about an asset class that I’ve written a book on and that I’ve noticed – after having been around many wealth management people – that it remains relatively unknown within the profession: gold, that is. Along these posts, I will try to debunk some of the quite enduring myths about the yellow metal. My goal is... Mon, 14 May 2018 16:46:41 +0000 https://goldbroker.com/news/wealth-management-advisor-special-which-currency-should-we-track-price-gold-1317