Three quarters of the current 2019 have already passed, which means that preliminary results can be summed up. Gold, as a safe haven asset, showed better returns than DAX and Dow Jones.

Since the beginning of 2019, the price of gold in US dollars has already increased by + 16.8% (in euros the growth was + 22.3%). The fact is that the euro is gradually decreasing against the US dollar, so European investors can rejoice at higher returns on investments in yellow precious metals.

Compared with the German DAX index and the American Dow Jones, the cost of precious metals also showed the best result. The price of gold in European currency set a new record in early September this year at around 1,413 euros, while gold still lacks another 27% growth to reach a record high in dollars.

One of the important factors in the growth of gold prices was a decrease in the yield of 10-year US government bonds by -37%. Due to lower interest income on US government bonds, gold investments have become more attractive to investors around the world. Amid deteriorating market conditions for large companies, the stock market may survive an outflow of capital towards investment in gold. In this case, the beginning of the next price rally in the precious metals market will only be a matter of time.

However, a significant increase in the value of gold this year brought with it one negative effect - this is high volatility, that is, the fluctuation of the gold exchange rate. But compared to the volatility of silver and crude oil, gold remains a fairly stable asset. For this reason, many experts advise having up to 10% of yellow precious metals in their investment portfolio in order to minimize risks on other assets.