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Gold Offers 2020 Vision for Investors in Turbulent Times

Thursday, October 31, 2019

We’ve all seen the markets see-saw from euphoria to despair a number of times in recent years. Investors have lost count of the number of times they’ve been told that things would return to normal, and that the markets would settle down.

Brexit, the ongoing US-China trade war and a slow-growing world economy have added unwanted volatility to the markets, but in actual fact, this has proven to be a perfect opportunity to make great gains, for those who saw sense to buy gold.

Read all about how buying gold today could improve your portfolio value and offer investors 2020 vision for the decade ahead.

Prices at fresh highs

In today’s market economists talk about low yields on treasury bonds and lacklustre gains in stock indices. Gold has outshone them all in the past four years. If you had bought a troy ounce of gold in early 2015, and decided to sell at the time of writing, you would expect to have seen a nominal price gain of 75 per cent for your gold investment.

That’s an incredible price gain in such a short space of time, and you’ll be fascinated to know that was just the rally that helped gold prices break to fresh all-time highs. Any further price rally in the coming months could potentially see gold prices soar to levels impossible to imagine just a few years ago.

But why gold? For one thing, gold has a time-tested reputation as being a safe store of wealth in times of economic crisis. In the last 20 years alone, markets have been reeling from the aftermath of the Dot-com bust, the bursting of the US housing bubble, as well as more recent turbulence, as a result of the ongoing trade war between the US and China, not forgetting all the Brexit-related uncertainty coming straight out of Westminster.

With gold prices rising above £1,200 per troy ounce in recent months, now could be the golden opportunity for investors to buy gold and lock in some great gains in the coming months, as Brexit potentially comes to a dramatic climax, and could likely push gold prices up even further.

If you wish to buy gold as an investment, but want to make sure you’ve timed it just right, check out the Gold Bullion Company’s own Live Gold Price Chart. Updated every five seconds, it gives an accurate reading of gold prices on the open market, allowing you to buy at a time that maximises the gains to be made.

Gold Britannia rules the waves    

Don’t let market uncertainty drag down your portfolio in the coming years. This could be the best time to buy gold coins, as the Gold Bullion Company is pleased to be offering the latest addition to our Gold Britannia series, the 2020 Gold Britannia.

Weighing 31 grams, our 2020 Gold Britannia is a tribute to not only Britannia herself, a lasting symbol of national pride. It’s also a fitting way to celebrate what will be Her Majesty Queen Elizabeth’s 68th year on the British throne. Gold Britannia coins have been minted regularly since 1987, and are a real piece of history, if you’re interested in the world of gold coins and commemorative items.

Based on a design by Philip Nathan, the 2020 Gold Britannia depicts Queen Elizabeth II, with an image of Britannia holding her trident and Union Flag shield on the reverse side. It costs £1,204 as of late October 2019, and benefits from being part of our VAT-free gold coin range. Demand for the 2020 Gold Britannia is unsurprisingly high, so dispatch may take two to three working days.

Celebrate the lengthy reign of our current monarch and get 2020 vision for your portfolio, when you buy gold coins such as this, as well as our broader range of Gold Sovereigns, which cover the reigns of Queen Elizabeth II, as well as her immediate ancestors.

Opportunity to lock in gains

In the coming months, investors will be looking for items to add to their portfolios which have intrinsic value, which can also remain stable or even appreciate in value over time. If you’re looking to buy gold bars, the Gold Bullion Company also offers VAT-free bullion bars.

Not only that, but some of the gold coins we provide are free from Capital Gains Tax (CGT). For example, the 2019 Gold Sovereign enjoys CGT-free status, on top of being VAT-free. This helps investors make purchases of gold without having to worry about extra costs beyond what they would be expecting to pay when they eventually sell back into the market.

Gold has an uncanny habit of cutting through the broader market sentiment, providing a safe store of wealth, as currencies are devalued and markets rise and fall along with the fortunes of the global economy. Gold is one of the least reactive of all the noble elements, so when you wish to buy gold as an investment, you can expect to benefit from the yellow metal’s longevity and its lasting appeal, which has persisted for centuries.

Get in touch

If investing in gold is what you think will give you 2020 vision for the decade ahead, the Gold Bullion Company looks forward to hearing from you. We’re gold specialists with years of experience in helping people buy gold and help them diversify their portfolios away from more obvious assets, towards those with greater intrinsic value.

Not only do we provide gold items for investors – why not check out some of our silver items as well? Precious metals are a great place to consider investing in, as both gold and silver remain highly-valued and have a reputation as two of the most prized of all the precious metals.    

Give us a call or email us, if you have any enquiries about buying gold or silver. We’re also available for appointments at our head office in Wolverhampton – just make sure to book an appointment first through our website, and we’ll look forward to helping you with your enquiry.

Telephone: 01902 623 259

Email: [email protected]

BREXIT - ALMOST - AGAIN

Tuesday, October 22, 2019

What a week!

October the 17th saw the announcement that the UK and EU had agreed terms on a new version of the Withdrawal Agreement. An upturn in confidence in the UK’s future saw Sterling rise against the Dollar and as a result the price of Gold in Sterling steadily dropped as low as £1142 per ounce as of the early hours of this morning 22nd October.

But, will the deal actually happen? Prime Minister Boris Johnson and his Cabinet Ministers remain adamant that the UK will leave the EU on 31st October but a substantial section of Parliament remains focussed on delaying or even halting the Brexit process.

The Government’s attempt to put the deal to Parliament during a rare Saturday sitting of the Commons resulted in acrimonious stalemate as MP’s decided that a vote on the deal should be postponed until the Withdrawal Agreement Bill, the legislation required to transfer the terms of the newly agreed deal into UK law, was approved by Parliament. This delay triggered the so called Benn Act and compelled the Prime Minister to make a written request to the EU for a further 3 month delay to Brexit. Boris Johnson’s response was to send an unsigned copy of the required letter together with an additional, signed letter stating his belief that an extension was unnecessary.

That brings us up to date as of Tuesday 22nd October. The Government is today asking MP’s to approve the Withdrawal Agreement Bill and there are signs that there is enough support from independents and Labour MP’s from ‘Leave’ constituencies to enable a rare Government victory. However, an anticipated subsequent vote on enabling an express timetable to rapidly push the legislation through in a matter of a few days is likely to result in defeat for the Government and further delay. Proposed amendments to the Bill from opposition parties are likely to cause further delays and could even produce proposals that the EU would not accept.

So, despite the initial excitement that we may, finally, be progressing towards a Brexit resolution, the reality is that as the situation changes then so too do the opportunities for the opposition to employ different ways to frustrate the Government.

Where do we go from here?

If only we had the answer! Whilst Boris Johnson has set the 31st October as the day that we leave the EU, Do or Die, it is looking increasingly unlikely that he can achieve this with a Minority Government. Opposition parties have previously promised a General Election once the threat of crashing out of the EU on 31st October has been countered. It may well be that this is the only way of putting an end to the inability of our current Parliament to agree on almost anything, particularly on Brexit. Both sides of the argument cannot prevail and a newly elected Parliament with a fresh mandate from constituents may provide the answer, whatever that answer may be!

In such turbulent times it is very easy to focus attention on what is happening at home and to lose sight of a broader, global picture. The twists and turns in the Syrian conflict now involving NATO member Turkey and Russia; the ongoing trade disputes between the USA and China; warnings that growth in China may be slowing at an alarming rate and confirmation of weaker trade in Japan and South Korea are all exerting stresses on the Global Economy.

How will the Precious Metals Markets respond in the near future?

We cannot forecast price movements but we can pay attention to a number of indicators. Gold has always been viewed as a safe haven in times of political and economic upheaval and we do seem to be living with more than our fair share of those at the moment.

Another point worthy of note is that Gold prices have reached all-time highs in respect of local currencies in countries as far apart as the UK, Japan, Australia and Canada. This has led to suggestions within those countries that maybe Gold has topped out and is not a sound investment. What needs to be remembered is that the Global price of Gold is set in USD and the Gold price in USD is currently standing at less than 80% of the 2011 all-time high. There is a great deal of potential for Gold to rise in USD, a fact that can be obscured if we focus too much on apparently high prices dictated by local issues and currency exchange rates.

As the year progresses and evenings begin to draw in we all tend to look closer to home in all things but in the case of precious metals, a Global outlook can be much more enlightening.

And in keeping with that thought I would like to take the opportunity to wish all of our customers a Happy Diwali for 2019.

Silver Could Outshine Gold Based on Historical Averages

Friday, September 27, 2019

This summer was an exciting one for the gold markets. Investors have been able to buy gold and watch as prices have climbed past their original 2011 highs. Gold burst through to £1,200 and looks set to go even higher.

Silver, on the other hand, has been languishing far below its 2011 peak, having lost half its value since then. But don’t let silver’s underperformance fool you. Based on one metric, silver is greatly undervalued relative to gold, and if history is any guide, investors can expect silver to potentially outshine gold and make far greater gains in the coming months.

The gold/silver ratio hits an extreme

One of the things investors like to look at when deciding whether to invest in silver is to calculate just how fairly-valued it is, relative to other assets, whether that be stocks, barrels of oil, or gold for instance. The gold/silver ratio is one of the best ways of measuring which metal could prove to be a better investment for some handsome gains

This is because the two metals have traded in a fairly consistent price pattern for the last half-century.

Since the late-1960s, gold prices have never traded at much more than 81 times the price of silver, as measured in one troy ounce for each metal. In this fifty-year period, gold has had an average value of about 57 times that of silver per troy ounce.

At the latest count, gold is priced at about 84 times the value of silver, meaning it is actually above the historical upper bound, and silver is chronically undervalued relative to it. Whenever gold has been anywhere near this level of overvaluation, like the law of gravity, the ratio has always returned back to his long-term historical average.

The silver dividend

If prices are to return from their current levels, to ensure a fairer pricing for silver relative to gold, you could expect the price of silver to leap from just £14.51 currently, to a valuation of as much as £21 per troy ounce. Imagine a price rally of that magnitude – gold is already touching new all-time highs already. Why not silver too?

As noted, silver prices are half what they were at their all-time high in 2011 at the time of writing, so if silver proves capable of returning to its historical valuation relative to gold, there’s nothing to stop silver going even further, and potentially breaking out to higher highs.

It’s all the more attractive an idea to buy silver, especially when you consider that silver is the more volatile cousin to gold. While gold prices soared a respectable 600 per cent between 1998 and 2011, silver managed to outperform it, rallying as much as 1,000 per cent in the same period.

Silver can also serve as a useful leading indicator of the overall direction of precious metals. Its bull market in the 1990s actually began almost two full years before gold, and silver famously peaked in value in April 2011, months before the gold price, signalling the risk of a multi-year bear market in the making.

It’s a tried and tested way of knowing where precious metals are going, so investing in silver could be a useful guide to seeing how your precious metals portfolio might perform over any given period.

Catch silver before it goes

Silver is not only used as an investment by many. It actually gets a great amount of its intrinsic value from its usefulness in a number of things. This includes its use as an industrial metal, with the average smartphone containing small traces of silver.

Silver is also useful as a conductive metal, for the construction of photovoltaic cells, to help generate solar power. You can even find silver has its uses in the world of medicine. Silver has antibacterial properties, so doctors are able to use it as a disinfectant, saving lives all over the world.

Silver’s usefulness in these areas means it has greater overall demand, as it gets consumed at a greater rate than gold. If we end up chucking our devices with traces of silver inside them into landfills, that’s silver that will prove tricky to recycle and return into circulation, meaning every bit of silver becomes intrinsically more valuable as time wears on.

Silver to invest in

With all of these factors in mind, you might be considering making investments in silver, but you might also be wondering who to turn to.

Here at the Gold Bullion Company, we have just some of the items you might wish to consider looking at if you are thinking of buying silver today.

Our VAT-free silver items are especially attractive, as we ensure that your investments are stored in a state-of-the-art London Bullion Market Association vault. They only become VAT-able upon removal from the vault. Make the most of our one-year’s-free-storage offer, as this could save you from £70 to well in excess of £1,000 in fully insured storage charges.

Alternatively, we offer a wide range of silver coins which enjoy Capital Gains Tax-free status. This includes our one-ounce 2019 Silver Britannia coin, depicting Britannia brandishing her trident, as an enduring symbol of national pride.

This year also happens to be the Year of the Earth Pig, so for any of you who are interested in the Oriental Lunar Calendar Cycle, why not check out our Lunar Year of the Pig coin? The Earth Pig sign is a twelve-year occurrence, and traditionally gets associated with long-term planning, patience and responsibility. What a perfect set of qualities, when considering investing in silver.