Political and economic uncertainty shook the confidence of investors throughout 2016, but gold still managed to maintain its traditional ‘safe haven’ status among the trading markets. According to Philip Diehl, the 35th director of the US Mint and president of the US Money Reserve, gold is currently viewed by many as a form of wealth insurance, with an unusually large number of traders buying 19 January calls, ahead of Donald Trump’s inauguration the following day.
"These record highs are exactly why you need to be buying gold, not despite them. I think this is exactly the right time when people ought to be re-balancing their portfolio in recognition that they are accepting a significant degree of risk putting their money in equities right now," Diehl said.
Investing in Gold Bullion
If you’re hoping to secure your place in the ‘gold rush’ you’ll need to consider whether you’re investing as a hobby or have a long-term strategy in mind. Those investing as a hobby can benefit from the excitement of monitoring gold prices online via live spot prices and price charts without taking too much of a risk by overstretching themselves financially.
When it comes to long-term strategies, investors are usually looking for the benefits of a ‘safe haven’ asset, which gradually increases in value even in times of market turmoil. Gold bullion investment is also considered by many as safer than its alternatives as it provides you with a physical asset that you can store safely for as long as you need, coupled with the asset’s tendency to perform well during periods of economic turmoil.
Demand for physical gold bars and coins has increased in the past five years, with consumers now actively seeking opportunities in the asset to avoid keeping their savings in unstable or underperforming bank accounts.
The variety in investment options is also seen as attractive. Bars can also vary greatly in size to accommodate the requests of individual investors, ranging from single gram bars to 12 kilogram bars. Of course, gold bullion coins also make a strong investment, providing the benefit of smaller investment jumps as well as the value of a collectible item.
Although we cannot provide you with specific financial advice, we can give you more information about the facts surrounding gold investment. If you would like to learn more about buying gold bars, please contact our sales team on 0121 523 1047.