In 2025, gold recorded its strongest annual increase in decades, with an increase of almost 70% in dollars. After such a movement, many savers wonder if it is too late to buy some. Especially since gold, after breaking new records in January, lost no less than 11% in one week in March. A volatility that is enough to frighten, for an asset that we nevertheless saw as a “safe haven”. What should we use to estimate the potential of gold?
Maxime Kugler, head of financial offerings at Altaprofits, has an idea on the issue: “It’s never too late to invest in an asset simply because it is already mounted. The important thing is to know whether the fundamentals still justify progress in the medium-long term. » So what else can support the sector? For gold, especially central bank purchases, geopolitical tensions and improving producer margins if costs stabilize. For industrial metals, these are mainly the structural needs linked to electrification and industrial uses.
Why the metals sector remains strong
The 2025 rally did not come out of nowhere. The precious metal was buoyed by central bank purchases, the return of investors and a need for diversification in the current complicated context. Result: the yellow metal remains very present in hedging strategies. Mining companies also benefited from this rise. But gold isn’t everything. And this is what our expert insists on: “Gold attracts attention, but it’s not the only interesting metal”.
He cites in particular “certain industrial metals, such as copper or tin” Who “can also present medium-long term potential, in particular because they meet structural needs linked to electrification and the evolution of industrial uses”. Indeed, copper remains supported by needs in electrical networks, in electric vehicles or industrial uses. Europe has also strengthened its strategy on critical raw materials, a sign that the subject goes far beyond just short-term speculation. Tin also benefits from specific industrial uses and a tight market. We must therefore also look at side of transition-related metals and industry.
How much to invest in gold
Maxime Kugler also reminds us that gold and mining metals must remain a pocket of diversification, not the heart of your strategy: “ The idea is to have an asset that can react differently from the rest of the portfolio ». Indeed, a small line, 5 to 10% of the total, can help to cushion certain shocksbut too much exposure exposes you to very sudden movements. After an increase of this magnitude, the real subject is not “should you buy? »but “what part of the portfolio would accept a 20% correction? ».
If you are not already exposed to gold, it is better to enter suddenly after a strong rally. Spreading out your purchases can be a good idea to smooth out your entry point and cushion moments of high volatility.
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