As stock prices plummeted, the gold price at the start of the week rose to nearly $ 1703 per troy ounce. It was last that high in December 2012. As is so often the case, the trend was opposite to the stock market.
However, one should not be under the illusion that gold is a safe investment. Gold bars or coins may be something to hold on to, so they always have value. “In this regard, physical gold protects because there will never be a total loss,” says Ralf Scherfling, finance expert at the German NRW consumer center. But there is still a risk of loss: “Anyone who bought gold at the end of the 1970s had to wait around 25 years before they could get back on the starting path.”
Nevertheless, the precious metal is very popular with investors in the low interest rate phase. “Especially in December 2019 you could see a real run on gold,” says Robert Hartmann, co-founder of the gold trader Pro Aurum. Now there could be another rush. However, nobody should put all of their liquid assets in gold. “I advise you to invest between five and a maximum of 20 percent in gold,” says Hartmann. How much exactly depends on your own mentality and willingness to take risks.