Soaring gold prices: The ideal time to invest
With gold reaching all-time highs, Moroccan and international experts are advising investors to invest in this precious metal, the safe-haven asset par excellence. The current surge in gold prices is part of a complex and uncertain global context, in which gold is more than ever a safe-haven asset. In Morocco, this international trend is reflected in an increase in investment in the precious metal. Whether to protect savings or generate capital gains, gold appears to be an unavoidable option, especially with price rises forecast between now and 2025. For Moroccans wishing to secure their wealth, the time has come to turn to gold, with caution and strategy.
■ A strong trend
The yellow metal has never sparkled more brightly than in the late summer of 2024. In just a few months, the price of an ounce of gold has soared to $2,530, a level never before reached. This figure, far from being insignificant, symbolizes a major trend emerging on international markets. Rising geopolitical tensions, combined with expectations of interest rate cuts by the US Federal Reserve (Fed), have propelled gold to unprecedented heights. In Morocco, this price surge has not gone unnoticed, and many experts are now advising investors to invest in this precious metal, both to protect their wealth and to seize opportunities for significant capital gains.
“Gold has always been considered a safe haven. Today, in a global economic climate marked by geopolitical tensions, it’s a shield against uncertainty”, says Kamal Lahlou, head of «Or Cash», a company specializing in buying back yellow metal. For him, this is the ideal time to sell gold purchased a few years ago and pocket substantial capital gains. “But it is just as interesting for people who want to invest to do so before prices climb even higher”, he insisted.
■ A combination of factors:
the price of gold should continue to rise between now and 2025. The reasons? A combination of geopolitical and economic factors. On the one hand, central banks in emerging countries such as China and Russia are increasing their gold reserves, seeking to hedge against currency fluctuations and free themselves from dependence on the dollar. On the other hand, the depreciation of the greenback makes gold even more attractive. One of the main driving forces behind the current rise in gold prices is the greenback.
One of the main drivers of gold’s current rise is the Fed’s accommodative monetary policy. By lowering its key rates, the US central bank is making bond investments less attractive, pushing investors towards safer assets such as gold. In addition, the recent depreciation of the dollar, which has lost over 9% of its value against the dirham since October 2023, is contributing to the rise of gold, whose price is denominated in dollars.
Bullions, louis d’or, paper…what to choose?
In Morocco, these international dynamics are having a direct impact on the local market, prompting investors to turn to gold, whether in the form of bullion, coins, or paper gold. “Gold has never been so much sought after”, explains a market insider. Since the Covid-19 crisis, demand for gold bullions has skyrocketed, particularly for 250-gram bars, which sell for around 200,000 dirhams. Although rare, these bars are a secure investment for well-informed investors. “With demand soaring, finding 250-gram bullions is becoming increasingly difficult”, confides our source. At the same time, private investors who can’t afford to invest in bullion are turning to louis d’o , highly sought-after 20 franc coins that are often counterfeit – a risk not to be overlooked.
However, “unlike real estate or equities, gold does not generate passive income. Its strength lies in its ability to preserve wealth in times of crisis, when other assets lose value”, said an investment advisor. This is why, even without dividends or rents, gold continues to attract investors, who see it as a bulwark against economic instability. For the more daring, paper gold, in the form of shares in gold companies or gold-backed funds, represents a modern and potentially lucrative alternative, albeit a more complex one.
Fédoua Tounassi
