Gold: A safe haven to include in your portfolio

With the price of gold having just hit new all-time highs, surpassing $4,200 an ounce in October 2025, many investors are questioning the precious metal’s place in their wealth management strategy. In an economic climate characterized by persistent inflation, geopolitical tensions and financial market volatility, gold is more than ever a premium safe haven.

But this revival raises several fundamental questions: how can the unchanging be explained? the allure of gold after millennia of history? Why does the yellow metal maintain its unique status in the face of the emergence of new asset classes? And above all, how can physical gold be intelligently integrated into a modern wealth strategy?

This article offers an in-depth analysis of gold’s role in wealth creation and protection, looking at both the historical and economic aspects, as well as the practical considerations involved in its acquisition and preservation.

This article is produced in partnership with Godot & Fils.

Estimated reading time: 14 minutes

Content

• Understanding the historical dynamics of gold
  • A millennial safe harbor
  • Understanding supply and demand
• Breathtaking recent performance
• Why should you include gold in your portfolio?
• In what form should I buy gold?
  • Physical Gold: A Material Safe Harbor
  • Paper gold: investment modernization
  • Tokenized Gold: The Web3 Revolution
• Conclusion: Gold, the timeless pillar of heritage

Understanding the historical dynamics of gold A millennial safe harbor The history of gold as a store of value goes back to the dawn of civilization. From the first coins minted in Lydia in the 7th century BC to the reserves of modern central banks, gold has survived the centuries, maintaining its unique appeal. This exceptional longevity can be attributed to several fundamental characteristics:

• A natural rarity : the amount of gold available on Earth is physically limited;

• Indestructibility : gold does not corrode and retains its properties over time;

• Versatility : gold is recognized and accepted as a value in all cultures.

A little note for the crypto enthusiasts who make up a large portion of our readership: while Bitcoin still has a long way to go in terms of versatility, the king of cryptocurrencies still has a lot in common with gold.

Understanding supply and demand As with all markets, the price of gold depends on supply and demand. Let’s take a quick look at how these two components interact for the yellow metal. Those of you who want to dive deeper into this topic can refer to this article where we will provide you with much more information.

Limited Supply: Scarcity as a Basis

Unlike fiat money, which central banks can create from scratch, gold has one fundamental characteristic: its scarcity. According to estimates, all the gold mined since the beginning of human existence would fit into a cube with a side of barely 22 meters. This physical scarcity is the main basis of its value.

The global distribution is as follows:

• 46% is jewelry (94,464 tons);

• 22% in bullion, coins and ETFs (45,425 tons);

• 17% belongs to central banks (34,592 tons);

• 15% is used in other sectors, in particular the technological sector (30,726 tons).

Annual supply relatively stable (from 4,500 to 5,000 tons), are based on two main components: mining and processing .

• Extraction of minerals now is almost 73% of deliveries. However, he faces serious problems. Not only are deposits becoming increasingly difficult and expensive to develop, but the environmental impact is enormous. The extraction of only 20 grams of gold generates tens of tons of waste. Geographically, the landscape has changed, with China and Russia now dominating manufacturing, and this concentration raises strategic questions at a time of international tension.

• Meanwhile processing is a sensitive price barometer. When the price of gold rises sharply, as it has since 2024, it becomes economically attractive to melt down old jewelry or recover the precious metal contained in e-waste. This is an important but unstable source of supply.

After all, the maneuvers of the manufacturers themselves through “net producer hedging” affect the market in the short term. To protect themselves against falling prices, they can sell some of their future output forward, temporarily increasing supply. Under this practice, prices tend to fall in the short term and rise again in the long term.

Multifaceted and unstable demand: the heart of the market

Although supply is structurally constrained, demand is dynamic and reflects global upheavals. It comes from four main sources.

• Jewelry products : historical pillar. However, the demand for them is elastic: when the price of gold rises , as happened during the recent boom, the cost of producing jewelry is rising and consumer demand is trending lower.

• Technological industry : although it is extremely important for advanced electronic components, its relative importance is decreasing due to continuous efforts to miniaturize and reduce costs.

• Investments : this is the real driver of volatility. Faced with uncertainty, investors, both individual and institutional, are flocking to gold to protect their assets. This demand is expressed mainly through four main vectors: bars, coins, ETFs and, more recently, tokens indexed to the price of the yellow metal. Different players are responsible for making this offer available. Banks and trading platforms process digital (and paper) gold in the market, while specialized institutions such as Godot & Fils, ensure satisfaction of physical demand.

• Central banks : The biggest buyers in recent years, we classify them here as demand-side players, but they may become supply-side players when their position changes. Their frenzied buying spree is a powerful signal. The World Gold Council’s 2025 study found that 95% of central banks surveyed believe global gold reserves will increase within the year. Their motivation? Gold’s performance in times of crisis, its role as a safe haven, its ability to diversify reserves and serve as a hedge against inflation. We are witnessing a profound movement of “de-dollarization” where gold is used to counterbalance the dominance of the US dollar. This trend is particularly visible in Asia and Eastern Europe, which have significantly increased their reserves, while countries such as France, on the contrary, have reduced theirs.

Breathtaking recent performance The recent rise in gold prices is due to several converging dynamics:

• Permanent inflation and monetary policy: As inflation regularly exceeds the central bank’s targets, investors seek to protect their purchasing power. Gold has historically demonstrated its ability to store real capital value over the long term and is often seen as insurance against currency depreciation.

• Undefined geopolitics: international tensions, regional conflicts and challenges to world order increase the appeal of safe haven assets independent of political systems.

The price curve is unambiguous: it has been almost vertical for 2 years!

Gold price curve for the last 20 years on the Godot & Fils website

It is not always easy to stay up to date with the latest news and market trends. While you can find information about gold in our newspaper, you can also use mobile solutions such as Godot & Fils app available for Android and iOS. There you will find the latest news about precious metals.

Why should you include gold in your portfolio? The answer lies in one important word in finance: diversification The fundamental principle is that to avoid putting all your eggs in one basket . Gold has a rare quality: its price often moves independently, or even inversely, to the price of traditional assets such as stocks, bonds or real estate. In times of turbulence, when stock markets crash or currencies fall in value, gold has historically demonstrated its ability to perform effectively, serving as a valuable safety net for a portfolio. It acts as wealth insurance limiting losses when the rest of your wealth is under pressure.

an ideal of course, it would be possible predict market movements and move your capital at the right time, staying invested only in growth assets. However, this strategy often is an illusion . Few investors, even the most experienced, can predict the ups and downs of the economy with consistent accuracy. Trying to “time the market” is a dangerous exercise that often results in losses rather than gains. A wiser and less risky approach is to build sustainable assets that can weather economic cycles, rather than trying to guess them.

That’s why, instead of promoting you-in gold, we recommend allocating a moderate but strategic portion of your capital to it. This part, which we leave up to you based on your risk profile, your goals and your investment horizon, is the basis of the defensive strategy. For some it will be 5%, for others 10%, 15% or more. It is important that this distribution exists and plays the role of a stabilizer.

Although this wealth management process may seem complicated, you are not alone. Professionals like those at Godot & Fils are here to help. Their expertise can help you determine the ideal place for physical gold in your portfolio based on the current market and your personal situation.

In what form should I buy gold? Even if you decide to invest in gold, the problem is not solved! In the age of digital technologies, the question of how to invest in gold is much more relevant than it was a hundred years ago.

Should we prefer the reassuring tangibility of physical gold or the modern availability of digital versions?

In addition to the selection criteria that we are going to discuss, do not forget to take into account separate taxation. Each of the products below is subject to a separate regime that can significantly affect your net profit. So take the time to learn about this aspect before you buy.

Physical Gold: A Material Safe Harbor Physical gold is the most traditional and tangible form of investment in precious metals. This category mainly includes gold bars, bullion and coins.

To get them, you can contact physical cash registers and specialized agencies . The best of them, such as Godot & Fils, provide personalized support and guarantee that you leave your room pack with me Some websites also offer to purchase them. Eventually, a few rare banks still offer this service.

Selling physical gold online from Godot & Fils

To choose support, you can, of course, seek the help of professionals. Your budget as well as ease of resale will be two important parameters to consider.

The main advantages of physical gold:

• Full sovereignty and control : you own the asset directly, without a financial intermediary you must trust;
• Absence of counterparty risk : your investments do not depend on the institution’s solvency;
• Optimal protection in the event of a system crisis : physical gold remains available even in the event of banking problems (unless you put it in a bank vault, etc.);

Practical considerations:

• Liquidity depends on specialized resale channels;
• Expertise is required at the time of purchase to avoid fraud;
• Cleavage is difficult;
• The need for secure storage (hole at the bottom of the garden, personal or bank safe, professional services such as Guardian from Godot & Sons ).

Paper gold: investment modernization For investors looking for opportunities to use precious metals without the logistical constraints of physical storage, paper gold is the traditional solution. These financial instruments offer immediate liquidity and optimal availability.

The main tools available :

• Certificates : issued by financial institutions, they represent a claim on physical gold held by the issuer, which creates counterparty risk;

• Trackers (Gold ETFs) : these exchange-traded funds replicate the price of gold, with exceptional liquidity and reduced management fees;

• Futures and CFDs : intended for experienced investors, these sophisticated instruments allow, in particular, leveraged speculation.

Excellent benefits :

• Transparency : products comply with strict rules on recognized markets;

• Splitting : the possibility of investing small sums;

• Optimum liquidity : instant market operations;

• Logistic independence : no problems with storage or transportation.

Tokenized Gold: The Web3 Revolution The advent of the blockchain has made it possible to tokenize gold, that is, it can be represented in the form of tokens that are issued and exchanged in various networks. In other words, you can store and trade gold like any other cryptocurrency, using a non-custodial wallet or from a centralized exchange platform.

Advantages of these tokens:

• (Quasi) infinite fractionation : possible possession of the equivalent of gold microparticles;

• Constant availability : markets work around the clock;

• Instant transfer : fast and secure transactions;

• Global availability : open to all without geographical restrictions.

However, tokenized gold shares all the technological risks associated with cryptocurrencies, in addition to creating counterparty risk on the issuer’s side.

Conclusion: Gold, the timeless pillar of heritage At a time when economic certainty is shaky and financial markets exhibit constant volatility, physical gold confirms its fundamental role in building sustainable wealth.

While its performance in recent years has been impressive, its appeal often lies not in its pursuit of spectacular returns, but in its unique ability to preserve value and offer unparalleled stability. Whether securing savings or preparing to transfer funds, precious metals are a strategic ally. Once you have assets, diversification becomes imperative, and gold, in our view, is an important component of that.

The choice of a reliable partner is a decisive factor in its acquisition. If this article wasn’t enough to enlighten you, feel free to refer to Godot & Fils, who can help you. It is also the first Monegasque company to offer the option of buying gold with cryptocurrencies! You can also delve into this article where we go into more detail on many of the points discussed here.

Source: journalducoin.com