The gold price started the week lower but the precious metal is still holding its own as a safe haven in the economic uncertainty that’s continuing to affect the financial markets.
Since the start of the year, the yellow metal’s price per troy ounce has jumped by almost 30 per cent. This morning (Monday July 18), it stood at £1,001.14 per troy ounce at 08:30.
What was already a bear market for gold has been pushed higher by the confusion caused by Britain’s vote to leave the European Union at the end of June, and the shockwaves from that are unlikely to disappear any time soon. The weekend events in Turkey are also likely to send investors towards the safety that holding gold offers in comparison to more volatile investments.
David Beahm, from New Orleans-based investment company Blanchard and Co, told US Money News that gold is an important investment because it is not vulnerable to devaluation by central banks and is an insurance against falling equity values.
He said: “This paid off for gold investors after the 2008 global financial crisis.
“Blanchard clients are often looking for the return of their money, not the return on their money. Take the plethora of negative interest-rate bonds around the globe right now. Gold has the power to store and grow wealth.”
He points out the value of investing in gold bullion bars and coins, and the simple storage associated with this type of investment.
“Having physical possession of your asset and having a piece of mind that no one can get to it but you makes it worth the relatively small cost,” said Mr Beahm.
“Keeping gold in a home safe or in a safe deposit box is easy for most people.”
It’s always important to deal with a reputable, well-established company when investing in precious metals. The Gold Bullion Company has been operating in the world-famous gold quarter in Birmingham for more than 20 years.
