Your basket is empty
Buy Gold Bullion
01902 623 259Monday to Thursday 9am - 5pm
Friday 9am - 4.30pm
MasterCard SecureCode Verified by Visa
You are not signed in | Sign In | Register

Gold Has All-Time Highs in Its Sights

Friday, August 23, 2019

As the summer draws to the close, it’s been a record-breaking season for gold. Not only have gold prices broken through their 2011 peak, just shy of £1,200 per troy ounce. Prices have now cleared the £1,200 per troy ounce barrier, and look set to reach even higher heights.

To stay up to date on this record-breaking rally in prices, check out our Live Gold Price tracker.

A summer to remember

Gold prices often go through lengthy periods of consolidation, leading some to assume that gold has had its day. Like a coiled spring, pressure builds and prices burst higher, catching many by surprise. This summer is no different, in that gains have been sizable, and all of this took place in just a few short weeks.

£1,200 per troy ounce was something of a psychological barrier, but now that gold has cleared it decisively in recent weeks, the likely trajectory for prices is higher for the time being. It’s a virtual golden circle – higher prices allow patient sellers to offload gold, while new investors eye up opportunities to buy on the dip before prices jump even higher.

The potential for great gains is simple – trading volume in the general markets is often thinner at the height of summer, and this means any major shift in sentiment can cause dramatic shifts to the upside or downside. This summer happens to be a positive one for buying gold, so prices have made significant gains in a short space of time.

Stellar gains for gold prices

Gold is often seen as the classic investment hedge against inflation and currency depreciation. The gains in gold priced in pounds masks a greater shift in prices that has taken place over in US dollars. This means prices for gold are rising in virtually every country, regardless of the currency. If the pound happens to be weaker, the potential for price gains is even greater.

The early stages of one of gold’s greatest bull runs, starting back in 2007, came at a time when you could expect to get two dollars for each pound. In an era of trade wars and Brexit uncertainty, your pound is now worth just $1.22 (as of 23rd August), a significant devaluation.

Gold’s gains, irrespective of currency, are thanks to a cocktail of global economic and political storms, and this makes the precious metal the ultimate hedge against uncertainty, wherever you happen to be. The last two bull-runs for gold prices lasted about a decade each, from 1970 to 1980, and 2001 to 2011. Another decade-long bull-run isn’t a certainty, but when gold has broken out to higher highs, it has certainly managed to retain value at the very least in previous years.

Gold coins attract interest

New to buying gold, and looking for something special to invest your money in? Why not cash in on the gold rush of 2019, by buying one of the Gold Bullion Company’s gold coins? We hold a number of gold coins of great historical value. For centuries, Britons have held onto Gold Sovereigns, a form of legal tender which was a treasured part of our coinage system in the age of Queen Victoria.

Why not buy a Gold Full Sovereign to mark gold’s rally in 2019? Queen Elizabeth II’s enduring legacy as the UK’s longest-reigning monarch means that each gold sovereign minted holds great historical value. No other monarch has seen so many years’ worth of gold sovereigns minted in their likeness.

The 2019 Gold Full Sovereign is the perfect way to celebrate her legacy – weighing 7.998 grams and struck in 22 carats, it holds a face value of just £1, but owing to the greater value gold carries, its true value is more like £315 per coin, as of mid-August.

Purchasing gold online

Buying gold online can feel a little strange if you’ve never done it before, but the Gold Bullion Company has been helping people invest in gold since 1993. We’re something of a specialist in this area, so you can trust us to help you with your transactions. Buying gold with us is simple, secure and efficient.

For generations, gold has been a store of value to many, and we make sure our customers get the fairest price for their gold. Check out our Investing Guide, to walk you through investing in gold with us today. It gives you all the information you could possibly want to know.

If you’re interested in buying gold with us, but need to know the convincing arguments in favour of doing so, we’ve provided some top reasons, through our Why Purchase Gold page. As well as being a hedge against inflation, gold comes in various shapes and sizes, allowing easy transportation, and it has the potential to outperform a number of assets over a long period of time.

Our site holds an SSL certificate, ensuring that all pages are encrypted, so any data you provide during transactions is only accessible to us, allowing a safe transaction. Payment is carried out through a secure external portal. Once you’ve purchased gold through our site, you can expect it to arrive in a timely manner, in non-descript packaging, via Royal Mail.

If you wish to buy gold with us, don’t hesitate to get in touch. Check out our Contact page, if you wish to call, email or write to us. If you’re based in the Wolverhampton area, you’re more than welcome to visit us, but make sure to book an appointment first, to avoid any delays.

Record Gold Price in GBP - A Great Time to Sell and also To Buy?

Tuesday, August 6, 2019

Monday 5th August saw the gold price in GBP reach its highest ever level. Record levels were also achieved for gold priced in Chinese Yuan, Indian Rupees and the Canadian and Australian Dollars.

Exchange Rates Matter

When studying the gold price it is essential to look at the exchange rates between the local currency and USD. Gold is traded around the world in USD and the exchange rates between USD and local currencies therefore determine the local gold price.

With the Pound currently trading around $1.21 USD we are experiencing some of the lowest rates in recent times with some forecasters predicting parity between the Pound and US Dollar if a No Deal Brexit produces further pressure on our currency in the weeks and months ahead.

This would result in higher gold prices for us in GBP but any sign of flexibility from the EU in re-negotiating our Brexit arrangements could see a strengthening of the Pound against the Dollar and a dip in Gold prices.

Record Prices in GBP....But

Recent record Gold prices in GBP and other currencies may well be grabbing headlines amid claims of assets being moved to ‘safe haven’ options but the underlying global price in USD is nowhere near record levels. At the current level of around $1465 per ounce the price is well over $400 per ounce below the record levels of 2011.

Looking Ahead

Financial authorities in the US and in the EU are looking to lower interest rates and the EU are apparently actively considering another money printing round of Quantitative Easing to head off growing fears of recession. Both of these courses of action have been associated with increases in the Gold price in the recent past and may well offer supporting arguments for future rises.

The increasing levels of Global unrest and uncertainty including the developing situation relating to US/Chinese trade add the likelihood of increased levels of ‘safe haven’ demand for Gold and the resulting price rise.

Many hedge fund managers and investment gurus are once again extolling the virtues of investing in Gold and such sentiment usually helps to stoke the Gold price. Whilst reaching record price levels in GBP may discourage some buyers, the fact remains that in Global terms we are $400 plus per ounce below all-time record prices.

If you are looking to invest in gold, there are many options available, depending on your budget, catering for beginner and seasoned investors alike. Products such as our Best Value 1oz Gold Bar are great for first time investors but we also have a wide range of Larger Gold Bars available for bigger portfolios.

If you are looking to take advantage of the record breaking GBP Gold Price and sell some or all of your portfolio, then you need to visit our Selling Page to help you work out what your gold is worth.

Could Gold Gain from Fresh UK Fiscal Stimulus?

Tuesday, July 23, 2019

Whichever way the Conservative Party leadership race has turned out this summer, Conservative Party members will have chosen a man to become Prime Minister; a man who is likely to advocate for Brexit by any means, along with a platform of higher public spending and tax cuts - a form of Brexit public spending spree if you like. With such turmoil on the political horizon, could it be time to consider buying gold, as a hedge against potential market turbulence?

The Bank of England, whose prime responsibilities include maintaining price stability and steady employment, could potentially be forced to slash interest rates and return to a policy of quantitative easing, known by some as another way of printing money, especially if a no-deal Brexit comes to pass.

These factors, a public spending spree, combined with the loosest monetary policy seen before, could combine to make 2019 a bumper year to buy gold.

Golden promises are made

After years of being reminded that the UK government has lived beyond its means for too long and that there was no “magic money tree”, both Boris Johnson and Jeremy Hunt appear to have found a magic money forest.

Mr Johnson pledged to lower tax burdens on higher earners, raising the higher-rate income tax threshold from £50,000 to £80,000. The Institute for Fiscal Studies believes this move would incur costs of £9 billion alone.

Both contenders for the role of Prime Minister have abandoned the near-decade-long Conservative Government plan of cutting the budget deficit, in favour of a public spending increase not seen since 2008. The last time a UK government oversaw such an expansion in borrowing, the government was responding to a global recession.

The global financial crash of 2008 was the drive gold needed, for a turbo-charged rally. Gold prices started at levels as low as £330 per troy ounce, in the summer of 2007, as the banking crisis started.

By the time the panic of the post-financial crash era had receded, gold prices were substantially higher. By the summer of 2011, the price of gold peaked at over £1,150 per troy ounce. That’s a four-year bull run, with a respectable return for gold bullion investors, during a time of market crashes and currency debasement.

Less fiscal wriggle room

Both Boris Johnson and Jeremy Hunt made their spending and tax pledges, based on the assumption that the Treasury could afford a rise in borrowing, post-Brexit. Outgoing Chancellor of the Exchequer Philip Hammond had actually stated that there was indeed some fiscal headroom, equivalent to £26 billion or so, kept aside to act as a cushion, in the event of a slowdown.

On top of Boris Johnson’s budgetary plans, Jeremy Hunt announced his intention to hike defence spending and cut corporation taxes to boost the economy. The former policy would cost as much as £13 billion annually, while the latter could cost as much as £15 billion more per year by 2024-25. Mr Hunt’s pledge to support agriculture, fisheries and SMEs was also estimated to cost as much as £6 billion.

In the face of these budget-busting pledges, Mr Hammond was keen to stress the fact that his post-Brexit war chest risked being completely burnt away, in the event of a disorderly no-deal Brexit. This is because he estimated that this outcome would cost a future Government £90 billion in a matter of months, far outnumbering the money he has put aside.

Putting this into context, a budget deficit rising by £90 billion at the very least risks taking the UK back to levels of borrowing not seen since the height of the financial crash in 2008, which saw the budget deficit peak at over £150 billion. Weak growth and tumbling asset prices allowed gold to rally by 250 per cent during its four-year bull run during the same period. There’s no reason why gold bullion shouldn’t make great gains if the UK finds itself grappling with a new downturn, following a disorderly Brexit.

Money printing back on the cards?

As well as potentially being on the brink of higher government borrowing, the UK is likely to experience fresh monetary stimulus from the Bank of England (BoE). In reaction to the global recession in 2008, the BoE slashed interest rates close to zero and created fresh cash through quantitative easing, seen by some as a form of money printing.

The BoE has demonstrated a pattern of behaviour by following this method, not only following the 2008 banking crisis but in response to the EU referendum back in June 2016. When economic surveys suggested a slowdown, as they are currently doing in 2019 as well, the BoE slashed rates to a new all-time low and embarked on a fresh round of money printing. In the face of a new economic slowdown, it is highly likely the BoE might follow the same prescription. Gold could be the main beneficiary, as it carries no interest, and its performance is based solely on its overall price performance, as based on supply and demand in the markets.

If you want to buy gold, a low-interest-rate environment could prove to be the drive to help you enjoy a significant return on your investment, especially if other assets experience corrections. This is because people often buy gold as a store of value, in times of economic strife. The last time there was fear of an economic slowdown in the UK back in 2016, gold prices rallied by 50 per cent in just 12 months.

Buy gold online

The potential for another gold price bull run is all the more reason for you to not only consider buying gold outright but also buying gold through an online outlet you can trust. The Gold Bullion Company has been ensuring that gold investors get high-quality gold bullion and other gold products at a respectable price.

If you think buying gold is something to consider, check out our guide, to help you decide if it’s time to invest your money in gold bullion today.