The price of gold continues its record rally. Since the beginning of 2025, the price per kg has risen by more than 30 per cent. Following criticism from American President Donald Trump of the Federal Reserve Chairman, Jerome Powell, more and more investors appear to be choosing ‘safe’ and ‘stable’ gold. De Telegraaf states that the gold price is rising primarily because confidence in the dollar is falling, partly due to statements by Trump.
Gold as a Safe Haven: Why Investing in Precious Metal Can Be Crucial
In a world full of economic uncertainty, more and more people are looking for reliable ways to protect their wealth. Gold, the timeless precious metal that has been considered valuable for thousands of years, offers a proven refuge when traditional financial systems falter. Taking care of yourself is not only about food, water and safety, but also about securing our financial future.
Why gold is a crucial investment
Gold has proven to be a reliable store of value throughout the centuries. During the financial crisis of 2008, the gold price rose from approximately $1 to more than $1,900 per troy ounce (31.1 grammes) in 2011, whilst stock markets collapsed. This historical resilience makes gold a fundamental part of any financial survival strategy.
Protection against inflation
When governments print money on a large scale, as during the COVID-19 pandemic, paper money loses value. Gold, on the other hand, maintains its purchasing power in the long term. Historical data shows that gold retains its value or even increases during periods of high inflation.
The US dollar has lost more than 85 per cent of its purchasing power since 1971 (when the gold standard was abandoned), whilst gold has multiplied its value.
Independence from the financial system
In times of bank failures, cyber attacks or other calamities, physical gold offers a form of wealth that is independent of digital systems and financial institutions. If the electricity goes out or banks close their doors, gold retains its value.
Universal acceptance
Gold is recognised and accepted worldwide as valuable. Unlike currencies, which are merely paper with no intrinsic value, gold has a universal appeal that transcends national borders.
Different forms of gold investments
There are various ways to invest in gold, each with its own advantages and disadvantages. For people striving for self-sufficiency, some options are more suitable than others.
Physical gold
Gold bars and coins
Gold bars and coins are the most direct way to invest in gold. They are physically in your possession, which gives complete control.
- Advantages: Complete control, no counterparty risk, privacy
- Disadvantages: Storage costs, security risks, possibly more difficult to sell
You can choose to store gold bars and coins securely yourself, for example in a safe. In addition, you can also rent or use a safe at your bank.
Jewellery
Gold jewellery not only offers aesthetic value but can also function as an investment.
When purchasing gold jewellery, pay attention to the carat content. 24-carat gold is pure (99.9 per cent), whilst 18-carat gold is 75 per cent pure, mixed with other metals for durability.
- Advantages: Portable, can be passed on as an heirloom
- Disadvantages: Higher premium above the gold value, purity varies
American actor Morgan Freeman almost always wears two gold earrings, following an old maritime tradition. According to Freeman himself – he has told this in various interviews – sailors often wear a gold earring as a symbol that, should they die at sea, the earring would have enough value to pay for a decent burial.
“The truth is, those earrings are worth just enough for someone to buy me a coffin if I die in a strange place. That’s why sailors used to wear them, and that’s why I do.”
Paper gold
ETFs (Exchange-Traded Funds)
Gold ETFs track the price of gold and offer a simple way to invest without owning physical gold.
- Advantages: Easily tradeable, no storage concerns
- Disadvantages: Dependent on financial system, no physical possession
Mining shares
Investing in gold mining companies offers exposure to the gold price with potential for additional returns.
- Advantages: Potential for higher returns, dividends
- Disadvantages: Subject to company risks, market volatility
How to start investing in gold?
Determine your goal
Before you invest in gold, you must have your goal clearly in mind. Is it for long-term financial security, as a hedge against economic instability, or as part of a self-sufficient strategy?
Choose the right form
Depending on your objectives, you choose the most suitable form of gold investment:
- For direct access to physical value: bars and coins
- For easy tradeability: ETFs
- For potentially higher returns: mining shares
Buy from reliable sources
For physical gold, it is crucial to buy from recognised dealers. Look for sellers who are members of professional organisations and who provide certificates of authenticity with your purchase.
Popular and reliable gold coins are the American Eagle, Canadian Maple Leaf, South African Krugerrand and Austrian Philharmonic.
Consider storage and security
The storage of physical gold requires careful planning:
- Home storage: Use a high-quality safe that is anchored to the floor or wall
- Bank safe: Offers more security but less direct access
- Private storage facilities: Specialised services outside the banking system
How much of your wealth should you invest in gold?
The ideal allocation for gold varies per person, but many experts suggest that 5-15 per cent of your total wealth is a reasonable starting point for most people. For those preparing for self-sufficiency, this percentage may be higher.
Diversification remains important
Even though gold is an excellent form of wealth protection, it is wise to diversify your investments. Combine gold with other valuable possessions such as:
- Silver (cheaper and more practical for smaller transactions)
- Productive assets (land, tools, skills)
- Stocks of essential goods
Historical lessons about gold in times of crisis
During the Great Depression in the 1930s, the American government confiscated gold from citizens via Executive Order 6102. People who owned physical gold and did not surrender it risked fines or imprisonment.
During the hyperinflation in Weimar Germany (1921-1923) and recently in Zimbabwe and Venezuela, gold offered protection against the dramatic devaluation of the national currency.
Conclusion
Investing in gold is not a modern fad, but a timeless strategy that has been applied for thousands of years by those who want to protect themselves against uncertainty. In a world that is becoming increasingly unpredictable, this precious metal offers a reliable anchor for part of your wealth. Naturally, it is never wise to put all your money into one share.