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Gold Price: November Market Swings

Thursday, November 29, 2018

The gold price has seen a certain amount of fluctuation over the last few weeks, with a considerable amount of upturn since October that analysts believe is the result of concerns over the health of the global economy.

While the overall market seems to be drifting sideways, it is likely that the growing threat of weaker global economic growth, the resulting economic – and political – uncertainty in Europe of Brexit, and the US mid-term elections have all played a part in gold’s market value.

As you’ll already know, gold represents a safe-haven asset that many investors look to in times of turmoil or crisis. And this could well be the reason that precious metal has sustained a moderate price recently. But have the events over the last few months been sufficient to warrant public interest in any potentially record-breaking highs or lows for the gold price? Not really.

Equally, with a Brexit situation yet to be completely finalised, we haven’t seen the full effect of the recent political events just yet. So we may witness some interesting changes to come in the gold market moving into 2019. Let’s take a closer look at how major world events have impacted gold lately.

Brexit, a potential leadership challenge and the unknown

Since striking a deal with the EU, Theresa May has faced tough times trying to convince the UK that her version of the much anticipated Brexit deal was the one everyone should back. In fact, she found it hard enough convincing her own party who have issued multiple no-confidence letters with several ministers even resigning, including her Brexit minister.

May, nevertheless, has pledged to keep pushing forward with her deal and warns that removing her from the position as PM will only weaken any chance the UK has in coming out with a deal that won’t completely derail the economy.

Similar to the last few months, it’s the fear of the unknown that poses the greatest risk to the UK economy. Various industries such as the automotive sector have warned that a bad deal, or no deal, could have disastrous consequences for the nation.

More than two years after the United Kingdom voted to leave the EU, it is still unclear how exactly things will end. Whether May’s deal is a “botched, worst-of-all-worlds deal which is bad for Britain,” as opposition Labour leader Jeremy Corbyn said speaking at the CBI conference, or if this is really the best the UK will get, is something we just can’t answer right now.

But what we do know is that instability such as this usually has the effect of increasing investments in the gold market as investors look to this stable asset as a way to buffer the impact of economic turmoil – as we may see in European markets following Brexit. But is this a serious geopolitical factor for the world marketplace? We’re eager to see.

US stability following mid-terms

Across the pond, things are looking a lot less choppy following the recent midterm elections. Following a dramatic election night, President Donald Trump's Republican Party was able to retain control of the Senate while the Democrats took control of the House of Representatives.

Despite the lively affair, many economists believe the outcome of the US mid-term elections is good news for the US and world economies. Chief among the reasons is the fact that Trump has come out relatively triumphant, avoiding embarrassment by increasing the Republican majority in the Senate.

So what we’re seeing is not a political shift or disruption of serious proportions, but a stable outcome where a strong US economy can continue to operate under a business as usual mentality. Trump’s willingness to communicate with foreign trading superpowers over deals also suggests a better outward-looking economic approach that could benefit the US.

Mining deeper, there may be further cracks and emerging situations to watch, but where gold is concerned, there usually has to be a significant change in the US dollar for there to be any large increase in the gold price.

UK base rate rise and US Fed rate hike

Between 2009 and 2016, UK interest rates remained consistent at 0.5 per cent, following their drastic cut after the financial crisis. The recent rise earlier this year, however, could indicate the Bank of England’s level of trust in the economy, as well as a potential sign of further interest rate rises in years to come.

In the US, the US Federal Reserve raised interest rates by 25 basis points, which is the highest recorded since April 2008. This is part of the Federal Reserve’s target to slowly normalize interest rates over time.

What does this mean for gold? Probably not that much, but let’s take a look anyway. Many investors believe that higher interest rates typically have the effect of driving the price of gold down. This is because as interest rates rise, and bonds and other investment options with high yields become more attractive, gold becomes less popular.

Despite the popular belief of a strong negative correlation between interest rates and the price of gold, a long-term review reveals this relationship isn’t so obvious. While this may well be a contributing factor to a drop in the gold price from time to time when combined with other market activities, it’s probably not the best signal that you should be preparing to sell all your gold before the price drops.

What does The World Gold Council say?

In their Q3 report on the gold market, The World Gold Council highlighted a few interesting facts about the market and recent trends that have taken place.

Recent stock market volatility and currency weakness were said to boost demand in many emerging markets and interestingly, China, the world’s largest gold bar and coin market, saw demand for these items rise 25 per cent year on year since 2017.

Q3 jewellery demand saw a price-led year on year growth of six per cent and the WGC also noted that lower gold prices during July and August encouraged bargain hunting amongst price-sensitive consumers. This is a trend that might follow if political and economic stability ensues in 2019 as more certainty over the Brexit deal and a strengthened US economy potentially have a negative effect on the gold price.

Final word

So all in all, the outcome of the mid-terms, recent developments over Brexit and the other world market factors seem to have only moderately impacted the gold price of late.

We’ve certainly seen some interesting upturns week to week over October and November, but the general direction seems to be sideways at the moment. And through a macro lens, we’re a long way from the price spike we saw earlier in the year.

You can track the gold price on our market reports here and keep an eye on our news feed for the latest updates on the swings in the market that could affect your investment opportunities in gold bullion and gold coins.

New Gold Coins: Ones to Watch

Wednesday, November 21, 2018

It’s often a much-anticipated occasion when a new coin is released, especially for investors and coin collectors who desire to own every year of a coin that’s minted annually. But why? Aren’t they all variations of the same thing with a similar value? To a certain extent, yes they do hold the same or at least incredibly similar value from the point of view of the precious metal content; but when looked at through the lens of a true gold and silver coin investor or an avid collector, there’s a lot more to it than just the gold or silver content of the coin.

Let’s take a look at what goes into the making of a new coin and how history, design and reputation all play a part in the excitement of a newly released coin onto the market.

The 2019 Silver Britannia

Britannia, the female personification of the British Isles, has long been an iconic figure associated with coinage since she first appeared on the Roman bronze coin in the 1st century AD. Later, the image became a standard feature of British coins, and is said to embody the nation’s strength and durability. As the 2019 Silver Britannia coin shows, it is still used today as a prominent feature of all gold and silver Britannia coins.

We’ve seen various alterations over the years of the classic Britannia design, with some versions choosing to feature a trident rather than a spear to highlight Britain’s maritime trade and history. But they all depict in some form or other, a strong female figure – not too dissimilar to the numerous Queens that have reigned over the course of British history.

Even in the last 10 years, we’ve witnessed an intriguing evolution in the Britannia design, with annual editions reimagining this iconic visual representation of British history and power. And for this reason, investors and collectors of gold or silver Britannia coins such as the 2018 Silver Britannia, will want to add this latest edition to their collections and investment portfolios.

As well as being a monumental moment in history where the definition of being British is under examination, as we evaluate our ties to Europe, the most recent Britannia represents an important symbol of UK heritage through coinage.

If you’re interested in other Britannia coins, take a look at how this popular design has been adapted throughout time by various artists by taking a look at our full range.

View the full range of Britannias and keep an eye out for the 2019 Silver Britannia

The 2019 Sovereign

The Sovereign coin was first produced during the reign of King Henry VII and was designed as a testament of national strength and wealth. Adopting the title of the ‘sovereign’ in the king’s honour, it became a symbol of prestige that continues to this day to be associated with wealth and top-quality coinage.

Following a period when King Henry VIII’s visage was featured on its face, the coin was later revived after England’s defeat of Napoleon at the Battle of Waterloo. Here entered the iconic symbol of St George and the Dragon, designed by engraver Benedetto Pistrucci – an image that is still in use today, signifying unwavering bravery and loyalty as suggested by the ancient tale.

This famous scene of good triumphing over evil, with its distinctive depiction in bold, direct movements as shown by the horse and rider, went on to become a recognised feature in more than 20 countries.

Pistrucci’s design is featured on almost every Sovereign bullion coin of the 20th Century, minus only a few occasions, and it is one of the world’s most iconic gold coin designs. It also enjoys an elevated reputation in the market, representing the highest standards of the coin maker’s art.

At one point, this coin even became known as ‘the chief coin in the world’. Some might say this is a good enough reason alone to invest in the new 2019 gold sovereign coin. But together with its fascinating provenance rooted in British history and western civilisation, the gold sovereign continues to be a very special piece in the bullion market.

Arguably no other gold bullion coin comes with the same certainties of value, weight and accuracy. If this has piqued your interest, take a look at this and other sovereigns such as the 2018 and 2013 gold sovereigns in our full range.

The Indian Mint Mark Sovereign

To distinguish between each of the various Royal Mint locations across the British Empire, gold Sovereigns had to be marked with a symbol to indicate the city or country of their origin.

In 1918, the Royal Mint established a branch in Bombay, within the Indian Government Mint. Only open for a year initially, it produced a considerable batch of coins, distinguished by the letter “I”, which you can see stamped above the date. Look closely and you’ll see!

Eventually, in 2013, the Royal Mint licenced MMTC-PAMP India to strike the commemorative Sovereign in India. And today, this coin now plays a big part in traditional Indian ceremonies and celebrations, especially at Indian wedding ceremonies and festivals where they are often highly-prized as a desired gift item.

The introduction of this coin also reduced imitation coins impacting the market, as the nation now had an original coin design. It also represents both purity and integrity, in addition to the inherent connotations of the British sovereign coin.

This historic coin is now one of the most popular additions to the bullion market with a rich history and a vast demand from Indian consumers, who see more than just the market value in these items – as many true gold investors will do too.

Whether you’re interested in purchasing the new 2018 Indian Mint Mark Sovereign or other sovereign coins released over the years, explore our full range online that also includes several coins of note from locations once belonging to the vast British Empire.

Why invest in coins of note?

Whether you are looking to invest, protect yourself against market crises or simply add to your amazing collection of historical coins now may be the perfect time to invest in one of these fantastic gold and silver coins.

In addition to being a reliable long-term investment, these gold bullion coins are globally recognised and in wide circulation, making them easy to trade, value and sell whenever you need.

Make sure you take a look at our entire range of coins, and keep an eye out for those mentioned here as well as other extraordinary additions to the gold and silver coin market over the past few years. They are truly a spectacle to behold!

Can You Buy Gold with a Credit Card?

Tuesday, November 13, 2018

When people are looking to buy gold or silver for investment online, they often want to use their credit card or debit card as a preferred payment method. We have always enabled our customers to buy gold with a credit card on our website and we don’t charge you for the privilege either.

We made the decision to remove charges for personal credit card payments in 2018 to offer our customers a much better experience when they decide to invest in gold with us.

Read on to discover how you could benefit when you purchase your gold with a credit card today.

Can I use a credit card to buy gold online?

Yes, when you buy gold bullion online at The Gold Bullion Co. you will see an option to complete your purchase with a credit card or debit card. Since the start of 2018, we now no longer charge our customers a fee for using this payment option. We accept payments from Visa Debit, Visa Electron, MasterCard Debit and Maestro but unfortunately you aren’t able to buy gold with Amex.

However, unfortunately we are unable to accept any payment made with a corporate credit card or business credit card, due to the higher fees that are associated with processing these payments.

Will my payments be secure when using a credit card?

Yes, we have taken extra steps to ensure that our customers are not vulnerable to cybercrime and credit card fraud when they purchase their gold bullion through our website. We have an SSL security certificate which has been installed on our website that encrypts all of your personal data to complete your gold bullion purchase.

Further, when you buy gold from us, we won’t process or record any card numbers during the payment process. Instead, you will be moved to a secure processing facility from SagePay that means we are unable to store or handle your personal data, which will guarantee a more secure transaction process for you.

You can rest assured that whenever you are required to provide us with your personal data, or when your personal data is on display during the checkout process, these areas of our website will be encrypted. If you can see a padlock icon or our company name highlighted near the address bar (depending on the internet browser), when you click on it, you will be able to see the security certificate information.

The precious metal industry is unfortunately vulnerable to being exploited by cybercriminals and credit card fraudsters, which is why we prioritise our customer’s safety when they choose to purchase their gold bullion through us.

Discover more about our efforts to keep your personal data and credit card details safe.

Why should I buy gold with a credit card online?

Many people buy gold with a credit card for the benefits of payment protections offered by their card provider. It’s a clear bonus for our customers and something we’re proud to have worked to enable without additional cost.

After taking the time to investigate the best way of providing a secure method of payment for our customers to buy gold with their credit or debit cards, we have been able to offer safe and quick payment systems on our website with your credit card. However, you can also purchase gold via bank transfer either online or in branch, when you buy gold from The Gold Bullion Co.

Do I have to use my credit card to buy gold?

No, you can also buy gold online with a debit card or via bank transfer which can be made online or in branch, depending on how you choose to do your personal banking. We do ask that you use your order number as a reference when you choose to pay using bank transfer and all payments must be received within 24 hours.

Now you can buy gold online with a credit card without incurring extra fees. Choose The Gold Bullion Co. to purchase gold securely today.