War with Iran, inflation, and gold: Is this the moment to invest in precious metals?

Geopolitical tensions, rising inflation, and an uncertain global economy are causing an increasing number of investors to turn their attention to gold, silver, and platinum. But is this really the right moment to invest in precious metals?

According to macroeconomist Willem Middelkoop, we are at the beginning of a new economic phase. Not only the conflict with Iran but also the shifting power relations between the United States, China, and the BRICS countries could have significant consequences for the financial markets.

Geopolitical uncertainty increases the demand for gold

Historically, investors seek safe investments during international conflicts. Gold has been known for centuries as the safe haven when financial markets become turbulent.

Due to the tensions in the Middle East, the wars in various regions, and the increasing geopolitical uncertainty, interest in physical gold and silver remains strong.

Is there going to be a second wave of inflation?

Although inflation in Europe and the United States has cooled, several analysts expect that inflationary pressure may rise again.

Factors that play a role in this are:

• higher defense spending
• rising energy prices
• rising government debt
• deglobalization of the world economy.

When inflation remains high for a long time, many investors choose to partially protect their assets with precious metals.

Central banks are buying record amounts of gold

It is noteworthy that central banks around the world have added significant amounts of gold to their reserves in recent years.

These purchases are seen as a way to become less dependent on the US dollar and to better diversify financial risks. Particularly, emerging economies are significantly increasing their gold reserves.

For private investors, this is often seen as an important signal that gold plays a lasting role in healthy wealth accumulation.

Is the dollar losing its dominant position?

The US dollar is still the world's most important reserve currency. However, the number of international transactions taking place outside of the dollar is growing.

Countries within the BRICS cooperation are increasingly exploring alternative payment methods for international trade. While a complete end to the dollar is not immediately on the agenda, the global financial landscape is visibly changing.

Is silver or platinum the next opportunity?

In addition to gold, silver and platinum are also gaining more attention.

Silver benefits from both the demand for a safe investment and the growing industrial applications, for example within the energy transition.

Platinum is seen by some analysts as relatively attractively priced. Due to the limited market, an increasing demand can lead to significant price movements.

Is this a good time to buy precious metals?

No one can predict the market. However, many investors choose to diversify a portion of their portfolio with physical gold, silver, or platinum during economically uncertain times.

A good diversification remains important in this regard. Precious metals are not a guarantee of returns, but they can contribute to limiting risks within an investment portfolio.

Discover the range of PUT-IT-ON

At PUT-IT-ON, you will find a carefully curated selection of physical gold, silver, and other precious metals. Whether you're starting to invest in gold or looking to expand your existing portfolio, we are happy to assist you in making an informed choice.

Check out our current offerings and discover how precious metals can contribute to a stable and future-proof investment.