Gold is regarded as a safeguard, preserving savings as the purchasing power of paper currency declines over time. Recall when a cup of espresso cost just €1? Today, finding one at that price in Brussels is nearly impossible.

Have you checked the performance of this valuable metal lately? After reaching an all-time peak, gold sharply dropped, shedding almost 15% of its value. Silver performed even worse, plummeting over 30%. A tough blow.

What triggered this collapse? The markets reacted strongly to US President Donald Trump’s recent nominee for the Federal Reserve chair, raising concerns that interest rates may remain elevated for an extended period.

Nevertheless, Europe continues to accumulate gold. But what explains this trend?

It’s prudent to begin with central banks. Their gold acquisitions aim to lessen dependence on the US dollar and to support economic stability within their countries. And their purchases are substantial.

Consider Portugal as an example: Lisbon holds nearly 400 tonnes. Then there is Poland, which, in response to Russia’s conflict in Ukraine, has been actively buying gold and currently possesses 550 tonnes.

This amount surpasses even the holdings of the European Central Bank itself.

Lastly, Germany owns over 3,000 tonnes, although 1,200 tonnes are stored in New York. With Trump back in office, German politicians insist: «Bring our gold home.»

That represents Europe’s stance. But how about individual Europeans?

Gold remains viewed as a protective asset, shielding personal savings as the value of fiat currencies erodes over time. Who can forget when espresso cost only €1? Securing one at that price nowadays in Brussels is unlikely.

Yet, as recent events reveal, gold does not always retain its golden touch.

Finally, why does this correspondent invest in gold? Because even if its value declines, there is still a tangible, gleaming asset to hold—unlike cryptocurrencies.

Watch the Euronews video in the player above for the complete story.