the price of gold breaks records, this expert analyzes the situation

See my news
Follow L’Orne Combattante

Safe haven since the dawn of timegold is often popular with investors and individuals wishing to preserve their wealth in times of geopolitical or economic uncertainty. The town of Flers (Orne) is not spared from the inflation of this asset.
Whether it is the tensions in the Middle East, the prospect of the American elections in the middle of a Harris versus Trump duel, or the economic slowdown in China, everything is moving in the direction of a increase in value of gold metal.

A dizzying rise in the price of gold

Since the start of the year, the price of gold has risen from €1,880 to more than €2,500 per ounce. Or an increase of almost 35% over the period. A situation that had not happened since the subprime crisis in 2008.

The price of gold exploded after 2008 as markets wondered whether the euro would collapse. In 200 years, there will still be gold but in 50 years, we don't know if the euro will still exist.

Indeed, taking into account inflation, its current price approaching historic highs of 1980 following the oil shock, as well as the peak of 2011 resulting from the debt crisis in the euro zone.

How does the gold redemption circuit work?

With these figures, we can easily imagine that many individuals wish to part with their gold objects. in order to make ends meet.

“When I started, a gram of 18-carat gold was €14,” explains Guillaume Caron. Today, it is close to €60.

As for the brand offering gold redemption, the operation is simple: she buys 14 to 24 carat gold jewelry (containing 58 to 99.9% gold) that it resells to a founderr who makes ingots before reselling them to its customers.

Each of the intermediaries takes a commission along the way. The price at which individuals can sell their gold is therefore often well below the market price.

A boon for individuals… and resellers

With such a rise in gold prices, resell the jewelry lying around in the closet can become lucrative.

“There is a windfall and communication effect. People heard about it on television broadcasts, in the news. We broke the record in Flers,” explains Guillaume Caron.

But according to him, there is no “typical profile” of a gold dealer even if most are over 40 years old.

It's not so much people who need money who sell us their jewelry. These are often broken or deformed jewelry. Gold is less fashionable than in the past.

A boon for holders wishing to improve their purchasing power.

Follow all the news from your favorite cities and media by subscribing to Mon Actu.