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Guard Your Wealth Against the Global Recession by Investing in Gold

Wednesday, September 2, 2020

In early August gold prices finally breached the $2,000 (£1,500) landmark which commentators have long been awaiting. This came amid shockwaves spreading across the globe from the global recession during the COVID-19 pandemic.

In the UK a recession was officially announced by the Chancellor earlier in the month, as the economy retracted for two consecutive quarters — the official definition of a recession. The yet unnamed recession has spread across the globe and has been felt in the strongest economy in the world — the US. Most of Europe is in a period of recession too, including Russia. Many economists are predicting the disruption of the pandemic will ensure the 2020 recession is worse than the 2008 recession, also known as The Great Recession.

Gold has historically proved to be a store of wealth during times of crisis and economic downturn.

So, in this article we’ll explain exactly what is driving the 2020 gold rush by investors. Here are our top reasons to invest in gold in 2020.

Gold prices topped record highs in August 2020

This month gold prices went above the $2,000 point for the first time as investors flocked to gold in response to the uncertainty facing world economies amid a COVID-19 triggered global recession.

The price fell slightly towards the back end of the month, but gold has been trending upwards for a long time, prices have risen 30 per cent, just in the last three months. And it appears likely that prices will rise higher again as other forms of investment drop in value during the recession.

The number of COVID-19 cases continue to spiral ever upwards in the US, apparently unchecked by the administration. Several states have reversed their decisions to reopen, or at least put back the date when they plan to end lockdown periods. A similar situation is taking place in the UK, second lockdowns have been enforced in Leicester and Manchester, and other towns in Northern England, and fears of a second wave of the virus could drive more investors to transfer their wealth into gold.

You can stay informed about the latest gold prices by checking our live gold price tool on our homepage. Using spot prices taken from live feeds around the world it’s regularly updated, so investors can rest assured of its accuracy.

Gold is a resilient form of investment

Recession is likely to have a much more significant negative impact on other common forms of investment. Bond yields are currently close to zero, and are negative in some markets. This is a reason why investors might wish to turn to gold investment. Adding gold to your investment portfolio can mitigate your risk level in turbulent market conditions.

The more investors turn to gold to diversify their portfolio, the higher the price of gold rises, which makes it a more valuable investment. This means the earlier you invest the better.

Moreover, stock valuations are currently higher than average in this climate, so acquiring gold even at increased prices is more affordable than other forms of investment.

Protect your wealth

Gold is a safe haven asset. What this means is that in times of crisis and market turbulence, gold prices tend to climb, or at the very least hold its value. Stocks, on the other hand, may fluctuate wildly, due to their more speculative and risky nature.

Gold bars and gold coins have been attractive since antiquity, it seems humans will never lose their fascination with the shiny precious metal. Investors today continue to be drawn to gold, more for reasons of its inherent value, because when investors buy gold, it maintains value better than almost any other form of investment.

There are many examples throughout history of gold prices remaining high during times of crisis. Gold prices were trending high during the Great Depression, the Second World War and the 1980s recession.

Gold prices also rose in response to the EU Referendum result in 2016.

Gold is on an upward trend

The rise in gold prices is not a short-term effect. Prices of the yellow metal have been trending higher and higher during the last decade as a whole, when prices almost doubled, and this year alone prices have risen by 30 per cent. Where will prices be at the end of this year when the true impact of COVID-19 has been revealed?

As the recession develops investors are likely to flock to the safety of gold in 2020.

Gold is tangible

Unlike stocks or bonds, gold is more than just numbers. Gold is tangible, it’s touchable. It cannot be easily destroyed, you can’t hack or manipulate its price. Gold is solid and dependable.

Diversify your portfolio

Get in touch with us if you have any queries about investing in gold. Alternatively, you can see if your question has already been answered in our handy gold bullion buying guide.

Or, if you’d prefer you can book a personal appointment in our Wolverhampton office. Give us a ring on 01902 623 259 to arrange a consultation.

Time To Re-Group

Thursday, July 30, 2020

When Covid-19 hit in March we made the decision to keep working for as long as possible and furloughed non-essential staff where we could. Our expectation was that we would be forced to mothball operations at some point. That did not happen!

Our staff members have been amazing during this crisis. Despite the imposition of lock-down, social distancing and hygiene requirements they have soldiered on and handled unprecedented demand from our customers.

We have now arrived at the point where, frankly, our team needs to take a break. Rather than rotating individuals onto annual leave and putting more pressure on the remaining staff members as a result, we have decided to close our offices for a full week so that everyone can get some much needed rest and the opportunity to re-connect with family and friends. As lockdown measures are now starting to ease we think that August would be the best time to take this break.

As a result, our offices will be closed from 3pm Friday 7th August 2020 and will re-open at 9am on Monday 17th August 2020.

During this period our customers will still be able to place orders with card payments up to £10,000 through our website but orders will not be processed until our return to work.

In order to minimise delayed dispatch and disruption there is a minimum order value of £250 in place during this busy period.

We would encourage all of our customers to place planned orders in the next week to avoid delays in dispatching.

PLEASE DO NOT SEND PARCELS TO US FOR DELIVERY DURING OUR OFFICE CLOSURE as they will remain in the postal system until our return to work.

Whilst we appreciate that these arrangements may cause some inconvenience, for which we apologise, the wellbeing of our staff members and our ability to continue to provide outstanding service to our customers in the months ahead are of great importance to us.

A huge  'Thank You' to all of our customers, old and new, for your loyalty, patience and continued support during these unprecedented times and for the many emails and even letters of appreciation that we have received.

Stay safe and well, it is by no means over yet!

The Team at The Gold Bullion Company

Bullish Forecasts Predict Historic Silver Bull Run

Monday, July 20, 2020

There is a lot of excited chatter at the moment that silver is set for a historic bull run, which could see prices spike dramatically to all-time highs.

Silver is overdue a bull run, its last was in 2011, when prices reached $48.70 (£38.56) per troy ounce. It might be time for gold’s often overlooked cousin to enjoy it’s time to shine in the limelight. If you are a keen silver investor, or an investor of precious metals that has never considered investing in the white metal, read on.

In this article we’ll shine a light on the key signs which are stacking up to excite silver commentators around the world, and how you can buy VAT-free silver with the Gold Bullion Company.

A rampaging silver bull run on the horizon

Activity in silver investing has seen a dramatic uptick in recent months. These movements have been led by SLV, the world’s largest silver exchange traded fund (ETF), who have purchased and deposited silver at a rate comparable to the most frenzied silver buying activity in history.

SLV have purchased so much silver (220+ million oz) over the past few months, that they’ve deposited more silver into these investment vehicles than at any other point in history. Do they know something we don’t?

Either way this massively concentrated period of purchasing silver is a possible sign of huge silver price spikes on the horizon.

Commodity markets usually see a surge in prices when vast quantities of the commodity in question are removed from the marketplace. It’s a classic supply and demand situation.

So, such a huge increase of the amount of silver bought over a short period of time should see prices rise, owing to the limited natural resource becoming less readily available.

But so far silver prices haven’t responded to all this activity. Yes, prices have rebounded from the lows of March, after silver dramatically fell to an 11-year price low of $11.772 per troy ounce. At the time of writing, the 16th of July, silver has bounced back to a healthier price of $19.21, however it’s still 65 per cent lower than its all-time price highs, and is nowhere near the heights that many commentators are speculating that it will reach.

This could mean now is the ideal time to invest, rather than waiting for prices to rise.

Key indicators

It is puzzling that the silver price has been slow to rise despite the increased activity, however this could mean that when it eventually does it could be even more dramatic with a steeper upward curve than forecast.

The Silver Institute have put their voice behind the calls for a price rise to silver. Given the rise in investment activity, the Institute which is well known for not voicing its opinion on the silver price, has felt like it has had to add its weight to the growing clamour for a rise to the precious metal’s price.

The Silver Institute has members from across the silver industry, including silver mining houses, manufacturers of silver products, bullion suppliers, refiners and wholesalers of investment products.

That their membership is drawn from such a wide field in the industry, and that they are united in calling for a rise in silver’s price, is another key indicator that a rise could be imminent.

Finally, we have to note the fact that silver currently undervalued in relation to gold. The gold:silver ratio, how much silver is needed to purchase one ounce of gold, recently fell from a decade-high of 127 to 97.8 in June. Still a high mark historically, this disparity between gold and silver could well plummet soon, making silver much more competitive with gold in the eyes of investors, and thus a tantalising investment opportunity.

In the long term, silver mines are quickly being depleted meaning silver mining could end within our lifetimes.

Maximise your investment opportunity with VAT-free silver

A major factor affecting silver investors is that silver is subject to VAT in the UK, where gold is not. Because of this investors, have to see a 20 per cent price rise before they start to make any return on their investment. This is one of the reasons those interested in physical assets have often turned to gold as an attractive investment, along with its ability to hold its value.

More investors, however, might be willing to buy silver if they were aware that it is possible to buy silver VAT-free with the Gold Bullion Company.

We offer VAT-free silver when you buy from us and keep the precious metal in a LBMA vault. So long as the silver doesn’t leave the vault, you don’t need to pay any VAT.

Your silver will be stored in a purpose-built, secured and fully insured LBMA vault situated in the UK. Your silver will remain VAT-free as long as it is not removed from the vault.

Should you wish to take delivery of your silver you can make a delivery request and we will organise a secure delivery to you subject to payment of VAT and delivery charges. If you prefer, you can keep the precious metal in the vault until you’re ready to sell, at which point you can sell back to us.

Invest before the bull run picks up speed

Silver prices could soon rise to prices that have never been seen before. Don’t wait for the bull run to pick up speed, consider your silver investment options today.

Find out more about VAT-free silver purchases