Today, the price of gold is constantly fluctuating, changing by 1% every hour. Which brings into question, is gold really a safe long-term investment?
Throughout history, gold has always been viewed as a symbol of wealth and prosperity. Originally treasured for its malleability and anti-corrosive properties, its value is further enforced by its natural scarcity.
Today, gold is still seen as a symbol of wealth. It is used as the world’s universal currency, providing a stable and reliable alternative to printed money. The prices of gold can be volatile for in the short-term but it maintains its value for longer periods of time.This is useful when it comes to using against the value erosion of fiat currency.
Gold In Times Of Crisis
Gold is a popular investment in times of crisis. In 2016 the demand for gold soared by 2% reaching an all-time high of 4,368.7 tonnes. This was due to the uncertainty of the US elections and Brexit. After Brexit, the price of gold increased by 5%, reaching over £1005.30 GBP an ounce. By the end of September 2016, the price of gold had increased by 25%.
Gold has had quite a successful decade in terms of investment. The rise in gold prices actually exceeded UK house prices in 2016, as well as the Financial Times Stock Exchange 100 Index and even Bank of England one-year fixed bonds.
Frequently referred to as a ‘crisis commodity’, gold has the ability to hold its value in both financial and political uncertainty. It is known to outperform other investments and unlike fiat money, the value of gold is not determined by government laws. Some major economies peg their currencies to the same gold standard, due to the metal being seen as a stable store of value.
Investing In Gold
If you are looking to invest in gold, buying physical gold allows you to hold assets outside of the banking system. This will reduce your personal exposure to banking related risks whilst expanding your wealth distribution.
In February, the World Gold Council published their most recent ‘Gold Demand Trends’ analysis for 2016. In an optimistic year for gold, there was a strong demand for physical bars and coins, specifically in the fourth quarter, where the prices eased and the demand for gold jewellery fell due to increased prices.
One of the reasons people consider gold as an investment is because they find it relatively easy to purchase. British Gold Sovereign and Britannia Coins are recommended investments because of they are exempt from capital gains tax, which means you will not lose out on any money.
Selling Your Gold in Manchester
If you are looking to sell your gold at a competitive rate, the Manchester Gold Exchange can help. Our expert teams of gold analysts will weigh and test your gold items using the highest quality equipment.
We offer competitive rates and a high-class service, so you can be sure that your gold selling process is a smooth and efficient experience.
Find out more about our gold selling process, or pop in to see us at Victoria House, Great Ancoats Street, Manchester, M4 7DB.
Alternatively, you can contact us using our handy online form or call 0161 273 2511.