The volatility of the global financial markets requires you to protect your savings and safeguard your assets from crises.
We live in a time of profound disruptions that will impact all forms of savings, in particular pure banknote investments such as cash-value life insurances, fixed deposits, building loan contracts, etc., for which considerable reductions are to be expected. In addition, every banknote investment will eventually return to its original value. The most crisis-resistant form of investment is buying gold, as it is a tried-and-trusted and at the same time tangible material with an inherent value. For millennia, the value of gold has remained stable.
For instance, in 1913, one ounce of gold bought you a made-to-measure suit. Currently, one ounce of gold is worth 1,035 euros – which will also get you a made-to-measure suit. The U.S. dollar, on the other hand, lost about 95% of its value between 1913 and 2000, and even the euro has lost a lot of its purchasing power since its introduction.
The current crisis is unprecedented in its scale and will simply extinguish many stores of value. Banknote investments will experience a marked drop in worth, similar to investments based on mass purchasing power and the availability of credit (such as securities).
One reason for the stable value of gold is its limited availability. That is why it has been a currency for thousands of years and a reliable store of purchasing power. It is also the reason why the central banks keep the majority of their currency reserves in the form of gold bullion.
There is a rumor that the price of gold will reach its peak in the near future, and there is also speculation about a lower entry level price. This is nonsense. The following figure shows that the price of gold is still far from reaching its zenith.
Currently, simply hoping for an affordable entry level price seems very risky behavior in light of the volatile market situation. Gold is a limited resource, and higher demand for crisis-resistant investments will lead to increasing scarcity and a rise in prices.