Gold Investment Options.

By | February 17, 2017

 

Regal assets Gold bullion

Gold has always been associated as a sign of wealth. Used as exchange for currency for century’s now. This also being one the most expensive precious metals on the planet.

The price of Gold can be triggered many different factors, the most obvious one is which gives its main value, how difficult it is to mine or resource this metal from the earths crust. Others can be the economy and industry demand, such as jewellery.

Gold Price Stability

Gold has always been classed as a safe haven for investors as it always keeps a large and good value. Start of 2016 seen gold price at 1070 USD per once, to a year high upwards of 1365 USD per once in July, a rise of nearly 28%.

Gold prices do fluctuate but always remain a good value, and as the mining of precious metals becoming harder, the metal becoming more scarce, the demand in price for this material will always get stronger, gold and mines are becoming depleted and finding new sites with gold deposits are becoming less, as the demand for gold will always be HIGH.

Gold Price

Economy will always play a big part in todays price of gold and the way it fluctuates, crisis in the global market can have a big effect, take BREXIT for example, this seen investors jump from a unstable currency to the safe haven gold. Investors pumped over 30 MILLION into Gold shares the day the Brexit results were announced.

Prices of Gold tend to rise when bank interest rates are low, investors buying into gold when bonds and savings rates are poor.

Dollar also has its effect, when the dollar price rises, the gold share price falls as investors put into the Dollar, but when the dollar falls people to tend to invest their money back into Gold creating a rise in the share price.

Industry and country influence can play a big factor, 50% of the demand for Gold is within the Jewellery industry, as long as their is a high demand for jewellery, there will always be a healthy share price. China is investing lots of money into Gold, filling up their bank reserves with this yellow material, plus the demand from the people in China and their ever growing economy is high.

Investing in Gold Stocks

Investing in Gold stocks can be profitable, buying and investing at the right time can see you money. Watching the market and knowing the factors that make the price fluctuate, will be your biggest tool for investing in the Gold commodity. Watching out for economic crisis, the dollar price, industry demand and country influence are all key aspects.

2017 could see a rise in gold price, for a number of factors surrounding Donald trumps presidency, first one is when Trump was elected this seen a drop in the value of the dollar, increasing the price of Gold.

The second is the trump factor, Donald trump wants to use gold standards as part of the U.S monetary system. The meaning of this is that he wants the U.S currency to exchange in the value of Gold (Gold Standards). The reason for this is because how stable the Gold prices remain, this bring a more stable Dollar.

plus500

Also the EU stability after the Brexit referendum, sparking uncertainty in the EU the Italians may be following in the same footsteps as the brits. The potential weakened euro will see a rise in gold prices as investors jump back to their SAFE HAVEN.

This year is the time to invest in Gold, with a lot of  uncertainty in the worlds economy and dwindling Gold mines as the precious metal becomes harder and harder to source investing may see good profits from your investments.

Buying Gold Bullion.

Many benefits can be seen from buying Gold Bullion, first is paying no capital tax gains on money invested into Gold that doesn’t make a profit over £11,000 in a financial year in the UK. For example if you bought Gold at £10,000 and at the end of the tax year the asset was worth £21,000 the investor would not pay any tax on this.

Why add Gold to your retirement portfolio? In the year 2000 Gold was at $325 a ounce, now $1242 this is a substantial increase considering the hard times that have passed and the gold price has not dwindled but only came on stronger, for example, banks have collapsed, countries currency have seen major hits, mortgages and debit default swaps were creating massive recessions, gold price stayed STRONG and didn’t budge. Gold always being the fall back commodity for its investors because of its ever rising and stable price, the SAFE HAVEN!

With gold your always going to see a good investment on your money held over a period of time as this precious metal is always appreciating in value, as it becomes scarce it will become greater in value. This is INEVITABLE!

HOPE ENJOYED THIS POST, PLEASE FEEL FREE TO LEAVE FEEDBACK.

8 thoughts on “Gold Investment Options.

  1. David

    I do believe you are right that this may be the time to invest in gold. I think President Trump’s unpredictability is the biggest reason to invest in gold. Have you heard of NuvaGold. They are mining a huge resource in the upper northwest. Any thoughts on buying this stock?

    Reply
    1. Sam Birch Post author

      Hi David,

      I have heard of NOVAGOLD mining on big resources within Canada.

      With companies like this it is about keeping your ear to the floor, share prices can be unsteady and hard to predict trends, but listening out for company news, maybe new mines found that this company is part of will influence the share price.

      Thanks for your comment David.

      Reply
  2. Chadd

    Hi Sam.
    This was a very informative post.
    I enjoyed reading about how reliable gold is as an investment.
    What are your views on silver? Does it have the potential to be a good investment as well?
    I ask because I used to collect silver bullion because people told me it would rise in price.
    Thanks for the post!
    Chadd.

    Reply
    1. Sam Birch Post author

      Hi Chad, Thanks for the comment.

      Silver can have dramatic rises in price, for example in 2008 prices where as low as 9 USD per ounce, by 2011 they nearly hit 49 USD per ounce, the same happened in the 1977 where the price was 4 USD per ounce and then spiked to 49 USD per ounce 1980 known as Silver Thursday.

      The factors surrounding silver price change are almost identical to the ones that effect gold, but silver has a big industrial demand as well as commercial, these are factors to look out for. But if you can buy Silver at a low rate and another spike occurs you could see big returns. Keep a eye on the market, and the prices and as with any precious metals they will always appreciate over time.

      I will create a post on this Chadd to give you or any other visitors to my site a better understanding of Silver and its value in the upcoming future.

      Many Thanks Sam Birch

      Reply
  3. Grace

    That is incredible how much gold has increased in value in the last 17 years. I wouldn’t have thought this at all.

    Does it look like now is also a good time to buy gold since on your graph it has come down in price a bit? Could you tell me why gold seemed to be relatively stayed the same price in the first 15 years of the graph above but in the last 15 years, it’s gone up so much?

    I sure will have to add this to our retirement plan. Thanks so much for your detailed post on this!
    Grace

    Reply
    1. Sam Birch Post author

      Lots factors have to do with this Grace, now is a good time with many economic crisis such as the BREXIT, the worry of the Euro, plus trumps presidency. All key factors to drive Gold price back up. Gold is precious metal, as it becomes more scarce it will increase in value naturally, the cost of living and value of such materials has increased with the ever more expensive world were in now. Investing in gold and letting it mature will always be a safe option as the graph shows.

      Thanks Grace.

      Sam Birch

      Reply
  4. Rosa

    Hi Sam,

    This article is very informative about gold. I’ve heard of the collapes and recession of the banks and mortgages but didn’t realize that gold remained stabled and strong. That’s interesting.

    I can see why it would be the best time now to invest in gold.

    Thank you for sharing this.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *