Gold Bullion Co. https://www.thegoldbullion.co.uk/ The UK Bullion Company Sun, 11 Apr 2021 16:19:16 +0000 <![CDATA[How to Read Silver Hallmarks]]> https://www.thegoldbullion.co.uk/blog/how-to-read-silver-hallmarks/ https://www.thegoldbullion.co.uk/blog/how-to-read-silver-hallmarks/ Tue, 06 Apr 2021 23:00:00 +0000 Would you like to know the history of your silver? If you own some silver, you probably want to know its age, fineness, date, and maker. Knowing these things would give you a good indication of your silver’s value.

Every type of silver features a set of small markings, called hallmarks, which tell you everything you need to know about the silver. This article outlines the steps you can take to read the hallmarks found on silver products and the fineness marks found on silver bullion.

Where Was My Silver Made?

To find out where your silver was made, the first step is to look for the standard mark. There are five standard marks used in British and Irish silver:

  • A walking lion marks all sterling silver made in England
  • A standing lion marks all sterling silver made in Glasgow
  • A thistle marks all sterling silver made in Edinburgh
  • A crowned harp marks all silver made in Dublin
  • An image of Britannia marks Britannia silver

If you cannot find any of these marks, then your silver is probably not British or Irish or it may be silver plated. If you can find one of these marks, then we can continue to narrow down the origin.

The next step involves looking for the town mark.

The historic manufacture of silver items tended to be centred close to the various Assay Offices that tested and certified the purity of the silver.

Below are some of the most common hallmarks:

  • A crowned leopard’s head marks pre-1820 London silver
  • A leopard’s head marks post-1820 London silver
  • An anchor marks Birmingham silver
  • A crown marks Sheffield silver
  • Three wheat sheaves mark Chester silver
  • A castle marks Edinburgh silver
  • A tree, fish, bell and bird mark Glasgow silver
  • A crowned harp marks Dublin silver

Over time, the hallmarks for each city tended to change slightly, so if you have any doubt, you can refer to this guide here.

How Old Is My Silver?

Your silver will have a hallmark called a date letter. This marking will tell you when it was produced. However, the date letters used differ depending on where the silver was assayed. For example, the date letter for 1898 in London is a lowercase c, but in Sheffield, it’s a lowercase f.

This is why it’s important to first identify the city mark of the silver. Then you can compare the date markings used by that city with what you see on your silver.

How Pure Is My Silver?

Every precious metal hallmark is composed of at least three symbols. Two of the three compulsory symbols are the maker’s mark and the town (or assay) mark. The third is the metal and fineness (or purity) mark.

With silver, there are four purity symbols you will find. The first symbol you may find is 800, which is a number only used for silver and indicates that 800 parts in every 1000 are silver, or in other words, the silver is 80% pure.

Moving up in fineness, the next symbol you will find is 925. This number indicates the metal is silver and that it is 92.5% pure. Silver that is marked with 925 is known as Sterling Silver.

Sterling Silver is commonly used in jewellery, cutlery (such as silver spoons), and other products because of its durability. Pure silver is quite rare because it is easily damaged, but by adding a small amount of alloy, silver can be used without fear of breaking.

Next is 958 silver (its exact fineness is 958.4), making it just over 95.8% pure. Known as Britannia silver, this purity replaced Sterling Silver for a time in the late 17th Century during a period when silver supplies were scarce. However, Britannia Silver was less easy to work and following protests from manufacturers, Sterling Silver was re-introduced as the standard purity. Britannia Silver did make an official re-appearance between 1997 and 2012 when it was used for the production of the initial version of the new Royal Mint Silver Britannia coin. Later versions of the coin were minted from 999 purity silver.

999 silver, also known as ‘three nines fine’ is accepted as fine or pure silver. This type of silver is most commonly found in bullion bars and many bullion coins too.

The purest silver to be commonly found is 9999 or ‘four nines fine’ which is used by some manufacturers and mints, particularly the Royal Canadian Mint and The Perth Mint. Whilst not used as a ‘hallmark’, 9999 is used as a ‘fineness’ mark as 999.9 on some bullion products.

If you would like to learn more about silver purity marks and hallmarks, you can read a comprehensive guide here.

What Is the Fineness of Silver Bullion?

Below is a table of some common types of silver bullion and their fineness:

Type of silver Fineness
Canadian Silver Maple Leaf 999.9
Australian Silver Kangaroo 999.9
Britannia Silver (2013+) 999
Austrian Silver Philharmonic 999
US Silver Eagle 999
Britannia (1999-2012) 958
Sterling Silver 925

As you can see above, some silver bullion is extremely pure. For example, the Perth Mint Kangaroo coin has a fineness of 999.9, which means 9999 parts of every 10,000 are silver, or in other words, it is 99.99% pure.

Other Silver Hallmarks

If the object you own is silverplated, then you may see alternative markings, which may include:

  • EPNS (Electro Plated Nickel Silver)
  • EP (Electro Plated)
  • BP (Britannia Plate)
  • EPCA (Electro Plated Copper Alloy)
  • EPGS (Electro Plated German Silver)
  • EP ON COPPER (Electro Plated On Copper)
  • ESM (Electroplated Silver Mounts)
  • EPWM (Electro Plated White Metal)
  • MP (Magneto Plate).

Interested in Buying or Selling Silver Bullion?

At thegoldbullion.co.uk, we offer some of the best prices for buying and selling gold and silver bullion. If you would like a quote on your bullion, click here.

We offer a range of gold and silver bullion to suit any budget, from fractions of an ounce to multiple kilos. You can invest in gold and silver bullion here.

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<![CDATA[Operational Update]]> https://www.thegoldbullion.co.uk/blog/operational-update-april-2021/ https://www.thegoldbullion.co.uk/blog/operational-update-april-2021/ Wed, 31 Mar 2021 23:00:00 +0000 We have reduced the potential delay in dispatch times for order down to 2 to 3 working days in most cases and we thank our customers for the patience and understanding shown during this problematic period.

Easter Holiday Office Closure

Our website will remain fully operational to accept orders throughout the Easter weekend.

Our offices will be closed from 1630 on Thursday 1st April 2021 until we re-open at 0930 on Tuesday 6th April 2021.

Order dispatch will be suspended from 1400 on Thursday 1st April 2021 until our offices re-open on Tuesday 6th April 2021.

We wish all of our customers a happy, peaceful and healthy Easter.


Monday, March 1st 2021

Unprecedented demand continues for physical precious metals and whilst we are delighted that so many customers, old and new, put their faith in us to supply their requirements, the sheer level of demand is continuing to cause delays in sending out orders.

All acknowledged orders are safely price locked and allocated to existing stock, or, where notified, to scheduled deliveries from our suppliers. Your orders are safe and will be supplied as quickly as we are physically able, but we ask for your patience and understanding during this period when it is taking longer than usual for us to ship orders.

We have re-assigned some staff members to our packing department and our team is working extended hours in a continuing effort to reduce delivery delays as far as possible.

Please assist us in our efforts by not calling in or emailing to request dispatch information as this takes staff members away from the primary task of getting goods shipped to our customers. Our system will send an email to confirm when an order has been shipped.

At present, we are managing to ship the vast majority of orders within seven days and will continue to make every effort to reduce these delays over the coming days and weeks.

Thank you to all of our customers for your continuing support and patience.


Monday, February 1st 2021

Since February 1st we have seen a huge increase in silver demand from our customers and increases in premiums from manufacturers and suppliers as global demand increases.

Over the last weekend we have received the equivalent of three weeks’ worth of orders in the space of 48 hours!

We would like to thank our customers, old and new, for their patience during these turbulent market conditions.

Our staff have acted quickly to secure additional stocks and to cater for the increased demand going forward.

It is our intention to dispatch all currently received orders in the next 7 – 14 working days.

All the products that are listed for sale are either in stock or on order from our suppliers, with a firm commitment date for delivery to us, giving customers the opportunity to lock in the current metal price at the time of order.

We would like to assure all our customers that we are working hard to dispatch orders with the least delay possible whilst social distancing and observing other measures that are in place to keep our staff safe.

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<![CDATA[Inflation Expectations could Fuel New Gold Price Rally]]> https://www.thegoldbullion.co.uk/blog/inflation-expectations-could-fuel-new-gold-price-rally/ https://www.thegoldbullion.co.uk/blog/inflation-expectations-could-fuel-new-gold-price-rally/ Sun, 28 Mar 2021 23:00:00 +0000 The 1970s are best-remembered for double-digit inflation, an erosion of savings and the seemingly unstoppable rise in gold prices that followed. Now, as the UK prepares to transition into a post-COVID-19 world, policy makers appear asleep at the wheel, seeming willing to allow inflation to overshoot.

By failing to act, policy makers could kick-start a new decade of higher inflation, which could trigger a wave of fresh interest in buying gold - a tried and tested way of preserving wealth as an inflation hedge. The Gold Bullion Company is seeing the signs of a new wave of inflation, and higher gold prices could follow in its wake.

A rising inflationary tide

In early 2020, the issue facing policy makers was deflation, not inflation. A collapse in demand due to lockdown restrictions led to a mini-financial crisis for a brief moment, and commodities and equities tumbled in value. Fast-forward a year, and now markets are expecting the opposite: a much-anticipated return of higher inflation.

This is best-seen in the bond markets - the UK Government issues debt at a range of maturities, from one month to 50 years. Massive amounts of quantitative easing by the Bank of England (BoE) mean bonds with shorter maturities have been bought up en-masse, keeping yields close to zero, to keep a lid on the cost of servicing a mounting government debt during the crisis.

The long end, where there is little bond buying by the BoE, where maturities extend past 2040 and beyond, however, is anticipating higher prices. As a result, traders are selling long-maturity bonds to ensure a higher yield to mitigate the risk. Gold could stand to benefit in an environment of rising inflation expectations, much as it did in the 1970s.

That’s because that decade saw back-to-back years of double-digit inflation, while the price of gold went parabolic. An end to the Bretton Woods system, coupled with a sliding pound and a sense of economic malaise helped propel gold prices from £14.5 per troy ounce in 1970 to £371 per ounce just a decade later.

History repeating itself

The abiding memory from the stagflation era is policy makers being slow to act, to stop inflation getting out of hand back in the 1970s. Gold rose when oil prices were hiked almost overnight not once but twice during the decade, and this pattern repeated itself in the 2000s and the 2010s. In 2015, gold was worth £700 per ounce, but more than doubled, rising to £1,500 by the summer of 2020.

There is little sign policy makers have learnt the lessons of the 1970s. In fact, the BoE seems content with allowing inflation to overshoot its two percent target for some time while still keeping interest rates at 0.1 per cent. The BoE appears to be actively encouraging higher inflation, potentially to inflate the value of our debt burden away, but an unfortunate consequence of this is eroded personal savings, unless interest rates rise to counteract price rises.

Low interest rates for longer aren’t the only monetary policy being employed to stoke inflationary fires. The BoE has been using quantitative easing to buy billions of pounds in bonds, in the name of keeping government debt servicing costs low. This might seem like a sensible approach in the midst of a crisis, but if the economy bounces back stronger than expected, it could quickly become an obvious policy mistake.

That’s because these billions of pounds could soon trickle down into the real economy. A large quantity of pounds flowing into the economy at a time of economic revival would simply accelerate a trend of higher inflation setting in, and gold could become a suitable safe haven for people to turn to. What hope do people have at protecting their wealth from inflation, if rates remain low?

Gold is currently a touch below its summer 2020 peak, but could be simply setting itself up for a buying opportunity before being back at the races later in the year. All economists expect a spike in inflation in 2021, as a response to the dip in prices seen the previous year - what goes down must go up. However, we’re seeing increasing signs that inflation will simply bounce back and remain elevated, unless policy makers take active steps to stop it.

Gold as a safe haven in the 2020s

The situation is fragile economically, and policy makers have a delicate balance to maintain - keep interest rates low while the economy remains below its 2019 peak, to avoid it slipping back into a dreaded double-dip recession. However, rising inflation could complicate this picture. Rising yields in the long end of the UK bond market point to a growing perception that inflation is coming back and here to stay in the coming years.

The BoE is caught in a trap. Keep rates low, but risk a tidal wave of higher inflation, and an exodus of savers out of risky assets into inflation hedges such as gold. If they choose to act to stop inflation in its tracks, the BoE could trigger another crisis, choking off the recovery prematurely. In this situation, gold could also benefit yet again, as the economic instability this causes would pull money out of risky trades and investments.

A spike in interest rates could pull money out of equities and back into gold, allowing this precious metal to surge to a new all-time high. Gold prices managed to double between 2015-20, and if they do so again, we could expect a price of £3,000 per ounce by 2025. The only question is, are you best-placed to gain from this potential rally?

The Gold Bullion Company has been helping people answer that exact question for a number of years, as gold has continued to exceed expectations, rising to new highs, year after year. We’re experts in this store of wealth, and look forward to helping you with any query you may have about buying gold today.

Call us on 01902 623 259 and we can help provide you with a wide array of suitable high-quality gold products at a range of prices to suit your needs.

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<![CDATA[Expect the Unexpected with Silver Price Spikes]]> https://www.thegoldbullion.co.uk/blog/expect-the-unexpected-with-silver-price-spikes/ https://www.thegoldbullion.co.uk/blog/expect-the-unexpected-with-silver-price-spikes/ Sun, 28 Feb 2021 00:00:00 +0000 Unlike gold, silver is a precious metal with a greater reputation for its uses in industry. Although far cheaper than its yellow metal cousin, silver is an easier metal to acquire for many buyers specifically because its price is lower. This was especially noticeable in recent weeks, when an army of Reddit keyboard warriors helped trigger a stampede of demand.

Learn all about the different ways silver prices have spiked in the past, and how this could benefit you in the future.

Silver Thursday

Perhaps one of the most highly-publicised spikes in the price of silver happened in 1980, during an event that has since come to be known as Silver Thursday. During the 1970s, the US dollar began to float freely as a fiat currency, after President Richard Nixon ended the Bretton Woods system, and the gold standard which pegged the Dollar to gold.

A decade of double-digit inflation ensued, with policy makers scrambling to find the right policy prescription to cope with crashing currencies, stock markets and an eroded pool of savings. Gold and silver proved to be a safe store of wealth during the 1970s, with both metals moving up in tandem. However, where gold went, silver went that bit further.

As an annual average, an ounce of silver was worth just £5 in 1979. At its peak in January 1980, silver prices rose to an all-time high of £21 per ounce. Most of this rapid price appreciation occurred in the space of just three months. The Hunt brothers, sons of a wealthy oil tycoon, spent much of their inheritance on physical silver and futures contracts.

By 1980, the brothers had effectively cornered the market, performing what investors call a short squeeze. As prices soared, anyone with a bit of silver was keen to sell what little they had, to cash in on the bull market. In many cases, this silver ended up with the Hunt brothers, simply increasing their hold over the silver markets, worth billions of dollars.

That all changed in March 1980. At this time, the US Government had taken notice of this market manipulation, opting to cut investors off from further long positions. The result was an enormous collapse in silver prices, bursting the bubble.

The return of silver

The collapse in 1980 was followed by a bear market in silver, lasting until 2001. For 21 years, anyone with a bit of silver struggled to make gains to justify a sale. However, all was not lost and all that was required was a bit of patience. By 2001, the US Dollar was peaking, while emerging markets were starting to boom. This shift in the balance of economic might caused commodity prices to surge, as part of a new commodity super-cycle. Oil, copper, gold and silver all rallied for a decade, as investors bet on an inflation trade. The price of silver experienced a particularly strong performance between 2008-11, as the US and European countries created billions of dollars and Euros to buy up government bonds through quantitative easing.

This attempt to debase currencies helped push precious metals to a new all-time high, aided in some part by a new viral online campaign, spearheaded by Max Keiser, a presenter on Russian state-sponsored broadcaster RT. The campaign, dubbed Crash JP Morgan, Buy Silver, proposed that members of the public should buy up as much silver as they could manage, in an effort to damage JP Morgan’s sizable short position in silver.

Prices spiked until May 2011, when a global slowdown began in earnest. It’s important to be mindful of the fact that, unlike gold, silver is a more industrial metal, so it is more prone to volatile swings in line with the performance of industrial production in countries such as the US and China.

Reddit strikes out for silver

Almost a decade after the last major peak in prices, a group of savvy Reddit users using the forum r/wallstreetbets got wind of hedge funds holding sizable short positions in stocks for companies such as GameStop. Within hours, hundreds of shares were bought, pushing up the company’s price. Mere days later, their tactics shifted.

Attention moved to silver, where a number of hedge funds continue to hold short positions. In just three trading days, the Gold Bullion Company watched as silver prices spiked by 20 per cent. In the space of 24 hours, we received orders for silver at a rate that we typically expect to see over an entire three-week period.

While the spike was short-lived, it caught many off-guard, and demonstrates the power of internet forums in driving up silver prices in next to no time at all. We can’t all be the Hunt brothers, but as the Redditors have shown, markets can move very quickly, and anyone with a bit of silver can make a sizable amount, if they time it with respect to any price rally that should follow.

Looking for the next spike

It’s impossible for us to know how and when the next price spike could occur. Markets are increasingly digitised, so money flows in and out of assets with increasing rapidity. What we can say is that, when silver bull runs get underway, they tend to last a decade at the very least, and most of the greatest gains can be made in as little as the last three months before the peak.

Prices may have settled back down to lows after the Reddit surge, and may stay static for some time, but like clockwork, the time may come when prices get that much-needed momentum to propel them to new all-time highs in the coming years. All it takes is a bit of patience and building up a healthy bit of interest in buying silver.

While it’s not possible to corner the silver market, as the Hunt brothers did, the Gold Bullion Company can facilitate sales of high-end silver products, including stored silver that is free from VAT. For more information about buying silver, give us a call on 01902 623 259, and we’ll be happy to help answer any questions you may have.

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<![CDATA[What is Driving the Price Rise for Silver?]]> https://www.thegoldbullion.co.uk/blog/what-is-driving-the-price-rise-for-silver/ https://www.thegoldbullion.co.uk/blog/what-is-driving-the-price-rise-for-silver/ Fri, 29 Jan 2021 00:00:00 +0000 From a low point of £10.26 per ounce on 18th March 2020, the silver price rose to £18.20 on the 15th January 2021. However, on the 28th January 2021 something extraordinary happened, alerts flashed across trading desks as the silver price began to climb unexpectedly from £18.28 to £19.51, over 6.5%, in the space of just over 7 hours!

Despite dipping below £19 overnight, at the time of writing on 29th January 2021, the price has recovered again to £20.05 per Troy Ounce.

People Power

The explanation for this unexpected spike in the silver price appears to be…People Power.

A global army of day traders using sites such as Reddit have recently made headlines in relation to the way in which stock prices can be influenced with concerted action. The fallout from recent trading in GameStop shares has led to some online brokerages preventing clients from buying shares due to market volatility and calls in the US for legislation to prevent such ‘market manipulation’.

It appears that the 4.7 million members of one Reddit group are now turning their attention to silver with reports on the platform referring to silver ETF’s and opportunities to buy in to silver mining companies.

An unexpected 40% jump in share price prompted First Majestic Silver Corp, owners of three silver mines in Mexico, to release a statement declaring that it was ‘not aware of any material, undisclosed information related to the company that would account for the recent increase in the market price and level of trading volume’ of its ordinary shares.

Time to Cash In?

If the recent price rise is tempting you to consider cashing in some, or all, of your silver assets you need look no further than The Gold Bullion Company

Smaller consignments, up to the value of £2,500, can be sent to us by fully insured Royal Mail Special Delivery. Royal Mail will even collect consignments from your home if you do not wish to visit a post office. If you wish to use the Royal Mail Home Collection service, we will gladly send you a packing kit and the correct tamper-proof pouch free of charge. Just call us on 01902 623 259 and we will immediately dispatch a kit to you.

If you wish to sell larger consignments of silver we can arrange to accept delivery in person by clients at our Wolverhampton Offices. Visits are strictly by appointment only and full Covid related precautions will be observed at all times.

Time to Buy In?

Many analysts have been highlighting the potential for silver prices to rise steeply over the last year and this latest spike in prices is seen as the potential catalyst that will release this ‘Sleeping Tiger’ precious metal bull run.

We offer a wide choice of silver bullion coins and bars which will be of interest to investors and collectors alike.

VAT Free Silver Bullion

Whilst silver bullion purchased for delivery in the UK is subject to 20% VAT, we have developed a service which allows our customers to buy fully allocated silver bullion bars or coins VAT Free. The assets are held in high security, fully insured UK vaults within the LBMA network. Customers can add to or sell their holding within the vault with no liability for VAT.

Customers can request delivery of stored assets but at the point of exit from the vault, VAT becomes due based on the value of the assets at that time and handling and delivery costs are also charged.

Storage charges are payable after an initial 6 months free storage period.

Keep an Eye on Prices

Whether you are a potential buyer or a potential seller in the silver market, the next days and weeks should be interesting as we see this latest story unfold.

Keep up to date with our silver price charts to help you with your buying and selling decisions.

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<![CDATA[Gold Stands Ready for 2021 Turbulence]]> https://www.thegoldbullion.co.uk/blog/gold-stands-ready-for-2021-turbulence/ https://www.thegoldbullion.co.uk/blog/gold-stands-ready-for-2021-turbulence/ Tue, 12 Jan 2021 00:00:00 +0000 At long last, 2021 is here, but the prospect of a new year doesn’t guarantee the end to all of the issues which dominated our lives in 2020. Rather than turning over a new leaf, key warning indicators continue to flash red, suggesting trouble ahead and the possibility for gold to continue rising.

The reasons are various but all come down to an obvious source: COVID-19 and the efforts to keep a lid on cases, as the pandemic continues to spread across the world. Learn what this could mean for gold prices.

The cases continue to mount

As years go, 2020 was one of the most intense ever for many of us. As many as 75,000 people lost their lives to COVID-19 in the UK in 2020, as health services were overwhelmed by rising cases and a shortage of beds and ventilators. Cases bottomed out in the summer, only to resume a grim upward trajectory as part of a second wave in the autumn.

Now, as we enter a new year, a new strain of COVID-19 has emerged, making the disease more easily-transmissible across the population. As a result, case numbers have spiked since December 2020, and pressure is returning to our hospitals. Until a vaccine has been distributed as widely as possible, the UK is returned to a state of lockdown restrictions, crippling the economy yet again.

Gold, which often rises during times of instability, spiked last summer to a new all-time high of £1,500 per troy ounce. News of vaccines becoming available caused a brief dip, but now prices have bottomed and could continue their long-term upwards trajectory, as cases and deaths mount in this new wave.

The cases and deaths are the more obvious headline figures to watch, when it comes to predicting which way things could go, but there are also compelling reasons to buy gold in the coming weeks, especially when you consider the fiscal policy responses to the pandemic.

Stimulus risks stoking inflation

As we wrote previously, policies put in place to prevent an economic downturn could risk putting upward pressure on inflation. The UK Government expects to see out the financial year in March 2021 with a record-breaking budget deficit worth hundreds of billions of pounds, as a result of a drop-off in tax receipts and the government stepping in to subsidise wages for businesses without the means to generate income.

This fiscal spending spree is matched by a large influx of cash from the UK’s central bank, the Bank of England.

The Bank of England is stepping in on the monetary side, creating billions of pounds through quantitative easing, to buy up government bonds and keep interest rates lower for longer to encourage consumer spending. History tells us that when the economy experiences such a large injection of cash in such a short period of time, inflation tends to pick up shortly afterwards.

For the wider economy, rising inflation means smaller pay packets in real terms, and effective negative rates of interest for savers, unless rates rise sharply to offset the price rises. The gold price, on the other hand, could benefit enormously from this stagflationary climate, just as it did in the 1970s. The Gold Bullion Company has been looking at gold’s seemingly unstoppable price rally since 2015, where it has effectively doubled in value.

Much of the recent price action has been occurring in the last two years alone, suggesting some of the greatest gains could be had in the coming months, especially if inflation numbers surprise to the upside. As gold prices tend to move in a parabolic pattern, it makes sense to keep an eye on prices for that upward lurch in the coming weeks with our Live Gold Price tracker.

Crowded field benefits gold

A flight of cash into the stock market and the bond market since March 2020 has taken both asset classes to high valuations, crowding out investors from finding affordable investments down the road. If you seek a bond which matures in 10 years, your returns would be close to zero. As for the equity market, it appears increasingly like a rally climbing a wall of worry. All it takes is one wrong move, a bit of bad news and the markets could tumble again.

This could be the catalyst for a greater surge in gold prices in 2021. As other assets fizzle out and their winning streak comes to an abrupt end, gold is ideally placed to rise substantially. Significant concern remains about the sustainability of a recovery, given the ongoing restrictions to stem the tide of COVID-19 cases.

The rush to buy gold means it has become more important than ever to find a trusted gold seller with an attractive stock of bullion products for dispatch. The Gold Bullion Company has been helping buyers in this capacity for a number of years, and we haven’t allowed COVID-19 to stop us from delivering high-quality gold coins, bullion bars and other precious metals items straight to our customers’ doorsteps.

In fact, demand is so high that dispatch can take between 3-5 days at present, as we return to operations in the new year.

The good news is that not only do we provide products straight to your own home, but The Gold Bullion Company also offers facilities including VAT-free storage for silver bullion, to keep costs at a minimum while giving investors the opportunity to participate in the precious metals markets.

Rest assured that, if you choose this option, your item is safely stored in a secure vault at an undisclosed location in the UK.VAT only comes into play, if you should choose to have your item dispatched from the LBMA vaults.

If you have any burning questions or wish to make a purchase with The Gold Bullion Company today, please feel free to call us on 01902 623 259. Our team looks forward to helping fulfil your needs as 2021 kicks off with a bang.

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<![CDATA[Christmas 2020 Operating Hours]]> https://www.thegoldbullion.co.uk/blog/christmas-2020-operating-hours/ https://www.thegoldbullion.co.uk/blog/christmas-2020-operating-hours/ Tue, 22 Dec 2020 00:00:00 +0000

Our website will remain available to take online orders 24/7 throughout the festive period but our offices will close from 3.30pm on Tuesday 22nd December 2020 until 10am on Monday 4th January 2021.

Due to ongoing disruption to the postal service in some areas, our last day for despatching orders for delivery before Christmas will be Monday 21st December but we strongly recommend that customers place orders early this year as disruption can occur without notice due to ongoing issues from Covid – 19.

We will resume order despatch on 4th January 2021 and hope to clear the backlog of orders placed over the holiday period by Friday 8th January 2021.

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<![CDATA[Gold could be Antidote to 2021 Inflation Spike]]> https://www.thegoldbullion.co.uk/blog/gold-could-be-antidote-to-2021-inflation-spike/ https://www.thegoldbullion.co.uk/blog/gold-could-be-antidote-to-2021-inflation-spike/ Thu, 17 Dec 2020 00:00:00 +0000 If 2020 was the year of surprises to the downside for many, 2021 is surely going to be one that surprises to the upside in a number of ways. The current recession due to the ongoing COVID-19 pandemic is sure to push unemployment up, while stimulus measures and a poorly-resolved Brexit could push inflation higher than expected.

Gold, which typically rallies during periods of economic weakness, could, as a result of these crises, mount a strong price rally, should the pound remain subdued and inflation becomes rampant. Learn how it could be just the antidote, if runaway inflation gives us the blues in 2021.

An unprecedented crisis

COVID-19 wreaked lasting damage like no other recession in recorded history. Almost twenty years of economic growth were wiped out in just six months, as lockdown restrictions curtailed economic activity. The UK entered its third recession in thirty years, and tens of thousands of Britons lost their lives to a virus that was virtually unknown until a few short months ago.

Going into Christmas 2020, we face the tail-end of a second surge in COVID-19 cases, with restrictions of one shape or another expected to remain in place, until a vaccine starts to bring the pandemic under control. The economy is expected to have shrunk in the final quarter of the year, as large parts of the UK returned to a month-long lockdown, and the economic pain begins to bite.

While the jobs market is experiencing losses, and the stock market is reeling from its worst crash since records began, gold has been making records across the board. Often rising in value during times of strife, gold prices have soared to over £1,500 per troy ounce during the year, before dipping slightly in more recent weeks.

If you bought gold priced in pound sterling back in 2015, you will have seen the value of your investment double in just five years, reflecting how turbulent a period it has been for the country. As you’re about to learn, policies being put in place at present could be supportive of a continued rally over the coming year.

BoE continues to adopt QE

The Bank of England (BoE) has the responsibility for ensuring price stability, using a special inflation rate target of two per cent on an annualised basis. When the economy lurched into recession, the BoE slashed interest rates to 0.1 per cent, the lowest point in British economic history, and began creating billions of pounds electronically, to buy up government bonds. This policy, known as quantitative easing (QE), is intended to push down the yields on government bonds.

Lower yields as a result of QE are supposed to prompt more people to borrow and spend, in the prospect of low rates of interest for the foreseeable future. The Bank of Japan adopted a QE programme from 2001 onwards, while trying to revive an ailing Japanese economy, which was sluggish after the bursting of an asset price bubble.

QE was supposed to revive inflationary expectations and prompt higher growth, but the jury is still out on whether Japan’s 20-year monetary experiment has revived its economy from a lengthy period of deflation. One thing is for sure - the more money you create, the lower the unit value of each pound or yen you have left. A weaker pound means higher prices for imports from abroad, raising prices across the board - resulting in higher levels of inflation.

Gold has been a fantastic hedge against inflation, as we saw in the 1970s, and again in the 2010s. When the price level of an economy shifts higher than expected, investors start looking to assets which can preserve the value of their money. Higher inflation means the pound in your pocket is eroded over time, if it isn’t spent in the here and now.

Having interest rates held at close to zero during a wave of high inflation means savers are effectively suffering from a negative interest rate, and losing money quicker than they can spend it, when adjusted for inflation. By putting money into gold, which surges during spells of high inflation, wealth can be preserved, or even augmented, if the price of gold rises fast enough.

Gold as a hedge in 2021

British investors reap an investment dividend when it comes to gold, because, irrespective of its value in US dollars, the fate of the British pound is the core driver of UK prices. If, for example, the price of gold remained stable in US dollar terms, a sterling devaluation of 30 per cent would result in UK gold prices suddenly jumping 30 per cent to compensate.

There are plenty of reasons to be wary of the pound in 2021. If Brexit negotiations are handled poorly, and result in a disruptive outcome, investors may prompt the pound to fall, boosting the price of gold by default. Additional upward momentum from gold priced in US dollars would simply add to the gains made by investing in gold.

Add to that the downward pressure policymakers are actively placing on the pound through QE and low interest rates causing a spike in inflation, and you have the cocktail for a stagflationary economic climate in 2021. Stagflation is when prices rise amid stagnant or non-existent economic growth. This could follow straight out of the playbook of the 1970s - rampant inflation, an economy too weak to sustain rising interest rates and gold prices soaring to new all-time highs.

That means it could be time to consider buying gold from the Gold Bullion Company. We have a track record of providing high-quality bullion products and VAT-free silver from reputable manufacturers for many years.

If you’re curious about buying gold, or wish to make a sale today, give us a call on 01902 623 259. We all wish you a merry Christmas and a happy 2021!

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<![CDATA[Gold May Enjoy a Post-US Election Price Rally]]> https://www.thegoldbullion.co.uk/blog/gold-may-enjoy-a-post-us-election-price-rally/ https://www.thegoldbullion.co.uk/blog/gold-may-enjoy-a-post-us-election-price-rally/ Fri, 27 Nov 2020 00:00:00 +0000 Few could have predicted how turbulent a year 2020 would prove to be, but fortunately for those investing in gold, the trials and tribulations have simply strengthened the bull market in precious metals. In the United States, a controversial US President has faced the fight of his life in the midst of a serious public health crisis.

Meanwhile, the UK has been contending with this same public health crisis in its own way, whilst battling to bring a firm resolution to the Brexit saga once and for all. These factors have dampened confidence during the year, helping keep gold prices close to record highs.

But what could happen next, now the US Presidential election is over, and what could help push gold higher?

Polarisation at new highs

Markets typically crave certainty - during a US Presidential election year, markets tend to respond positively to some form of continuity. This could mean an incumbent returning for a second and final term, or there being a smooth transition process, if the incumbent party finds it has lost the White House.

While Joe Biden may have clinched 306 electoral college votes, more than enough to clear the 270 they needed to win the US election, a smooth transition is proving tricky to ensure. The US is in the grip of a third wave of COVID-19, and the US economy is likely to feel the effects of that in the form of weak growth by year’s end.

President Trump has broken with predecessors in failing to concede the election, while allowing a transition to occur - all despite the electoral maths pointing to a clear victory for Mr Biden. Instead of giving markets reassurances of a smooth transition, Mr Trump has delivered fresh doses of uncertainty, circulating unsubstantiated conspiracy theories, suggesting the election was rigged.

As COVID-19 cases continue to soar, President Trump is also reported to be sitting on attempts to give Mr Biden’s team access to the necessary resources needed to fight the pandemic. Mr Biden went as far as to say that “more could die”, if President Trump fails to relent in blocking the transition process from getting underway properly.
 

The UK faces problems of its own

Political turmoil in the US pales into comparison with the UK’s situation. The country faces its second wave of COVID-19 cases after a brief lull in the summer, and England is now emerging from a second major lockdown, which may dent economic growth in the fourth quarter of the year.

Added to this is the strain to deliver a resolution to the Brexit saga which has distracted and hamstrung the UK’s political establishment since the EU referendum in June 2016. Gold investors in the UK have benefited immensely from the uncertainty generated by Brexit. Before the referendum, gold prices sat at £700 per troy ounce. At the time of writing, prices are closer to £1,475 per troy ounce.

This effective doubling in just five years reflects the strength of gold coupled with immense weakness in sterling over many years. In the latest twists and turns of the Brexit story, it is understood that a pivotal vote in the European Parliament on Brexit has been postponed until 28th December 2020. This delay means the UK risks going right up until the last three days of its Brexit transition period before a possible resolution can be assured.

If Downing Street is unable to negotiate an effective outcome to the situation with European leaders in a timely way, this is guaranteed to roil markets.

Unprecedented stimulus weakens currencies

The pound is not only suffering as a result of this ‘Brexit effect’, but it is also under pressure domestically from the UK’s very own central bank. The Bank of England is intentionally trying to push the pound down through a policy called quantitative easing (QE), where it digitally creates tens of billions of pounds overnight, to buy government bonds.

These extra pounds are expected to circulate into the economy at some point, bringing the unit value of each pound lower in the process, generating higher inflation in the long term. Gold has traditionally been more bullish during times of high inflation, so the fresh rounds of QE announced in recent weeks could be just the ammunition needed to spur a sustained bull market for the time being.

Gold prices remain elevated, as markets await the outcome of Brexit and digest the events following the US Presidential election. The transition period between two new administrations of different parties can often be a nerve-wracking experience for traders, especially if the incoming administration offers a radically different economic approach to its predecessor.

Both the UK and the US are using QE in unprecedented amounts to stave off a deflationary spiral, which has the effect of perpetuating an economic climate of easy money, cheap borrowing and higher inflation expectations.

Gold could remain resilient in 2021

Just as the COVID-19 pandemic was beginning to rattle markets in April, Bank of America published a forecast for gold prices over an 18-month period up to October 2021. In its forecast, the financial institution expected gold to hit $3,000 per troy ounce by the end of the projection. If exchange rates between the US dollar and the pound were to stay steady from now until 2021, this could mean a gold price equivalent to roughly £2,400.

This indicates prices could almost effectively double if Bank of America’s projections are correct, giving investors all the more reason to consider adding gold to their portfolios in the next 12 months. If you wish to buy bullion or simply wish to speak to experts in the field of precious metals, the Gold Bullion Company is the best place to start.

By calling 01902 623 259 or getting in touch through other routes via our Contact page, you will be put in touch with a member of our hard-working team at our offices in Wolverhampton. For health and safety reasons, meetings in person at our offices are by appointment only for the time being.

Our team can help answer any questions you may have or facilitate the online sale of bullion in an efficient way, to help you join hundreds of thousands of investors across the UK today.

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<![CDATA[Operational Update]]> https://www.thegoldbullion.co.uk/blog/operational-updates/ https://www.thegoldbullion.co.uk/blog/operational-updates/ Thu, 12 Nov 2020 00:00:00 +0000 As the latest Covid Lock-Down in England adds to the restrictions that are already in force, to varying degrees, in all parts of the United Kingdom, we wish to re-assure our customers that we are still open for business.

We have very strict protocols in place to keep our members of staff safe in the workplace and business continues, albeit not as usual.

Delivery schedules for orders are generally returning to normal but we are still experiencing some delays as individual delivery hubs cope with staff shortages due to illness.

For clients that wish to sell items back to us, that service continues. We are still receiving packages sent to us by insured Royal Mail Special Delivery and for higher value sales we are able to make Covid-secure arrangements to receive personally delivered consignments, strictly by appointment only and subject to compliance with our protocols. Please call for details if you wish to visit us to sell items.

For clients that are self-isolating or unwilling to visit a Post Office, the new Royal Mail Collect service may be of interest. It is now possible to have insured Special Delivery parcels collected from your home or workplace by Royal Mail for a small additional fee. Visit Royal Mail Parcel Collect Service for details. (Select large letter or small parcel, depending on the weight of your items and select Special Delivery service with an insurance level that covers the contents.) We strongly recommend that a tamper-proof Royal Mail Special Delivery pouch is used when sending precious metals through the post. These pouches are available free of charge from a Post Office. If you are unable to access a Post Office to collect a pouch we will be happy to post one out to you, just give us a call.

The recent news that a Covid vaccine could be available in the near future seems to have given the Nation a glimmer of hope that 2021 could see the lifting of many of the restrictions that we are currently enduring. We all hope to see improvements in the situation which will allow as social a Christmas period as possible.

In the meantime, please follow the rules that apply to your particular area and Stay Safe.

The Team at The Gold Bullion

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<![CDATA[Gold Price Resumes Upward Trend]]> https://www.thegoldbullion.co.uk/blog/gold-price-resumes-upward-trend/ https://www.thegoldbullion.co.uk/blog/gold-price-resumes-upward-trend/ Mon, 09 Nov 2020 00:00:00 +0000
The recent US elections have been some of the most controversial in history, with a record number of voters, mail-in ballots, and now lawsuits.

It seems likely Joe Biden will win, but with a mass of court battles underway, the final outcome is still unclear. This lack of certainty is helping to push gold upwards.

We can now add one more uncertainty to an ever-increasing list of uncertainties this year: Coronavirus and its economic fallout, jobs and employment, businesses and government support — there is an ever-receding view of day-to-day normality.

Investors search for stability in an unstable world. One commodity that not only stands firm but thrives in unstable markets is gold. Since January this year, gold has gained over $400, an increase of around 22%.

Gold now stands at $1965 per Oz, a 2.34% increase over the past 30 days; silver rises to $25.7 per Oz, a 5.32% increase over the past month. Both metals continue rising due to market uncertainty.

Even after the final election vote is counted and the final court case heard, gold is still going to win. This is because the pandemic pushes on, businesses continue to suffer, and investors remain cautious. Governments have stepped in to provide support, but this comes at a cost: central banks around the world have had to expand their quantitative easing (QE) programmes.

The Bank of England expanded its QE programme to £300bn; the ECB boosted its stimulus package by €600bn; and the US Federal Reserve increased its lending by $2.3tn.

As monetary supplies increase, the values of currencies decrease, this is known as inflation. If inflation is at 1% it means you lose 1% of your buying power in one year. The UK inflation is currently averaging 1.19%. However, with such significant levels of quantitative easing taking place around the world, we can expect to see inflation climb.

Unlike the USD, GBP or EUR, gold cannot be produced in unlimited quantities by a machine. This scarcity in addition to global monetary stimulus policies has led many to project gold’s price to double — even triple — over the next few years.

The Bank of America forecasts gold to hit $3000 in 2021. Bloomberg Intelligence believes gold will reach $4500 by the end of 2023.

Gold can protect your savings during market uncertainty and maintain your buying power while central banks around the world undertake quantitative easing.

If you are interested in making an investment in gold, you can find out more here.

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<![CDATA[Gold Stands to Gain if UK Rates Turn Negative]]> https://www.thegoldbullion.co.uk/blog/gold-stands-to-gain-if-uk-rates-turn-negative/ https://www.thegoldbullion.co.uk/blog/gold-stands-to-gain-if-uk-rates-turn-negative/ Mon, 26 Oct 2020 00:00:00 +0000 We have been living in an era of low interest rates for just over a decade, and now policy makers at the Bank of England (BoE) are giving signals that they might be about to turn the concept of saving on its head. The tradition of saving money was always based on the idea that leaving money with your bank would reward you with interest over time.

The BoE, however, is mulling over whether to adopt a policy of negative interest rates. This would have the effect of eroding the value of savings - an unfortunate consequence of the BoE trying to prompt more people to borrow at any cost.

This experimental monetary policy could have a profound effect on investor psychology and boost prospects for gold.

Negative rates boost prospects for gold

Low interest rates penalised savers, as they had little to expect in terms of returns on savings. But now the BoE is actively approaching banks, to see how well-prepared they are for the adoption of negative rates. If savers thought returns were low before, they won’t like to see what happens, if negative rates come into play.

Countries such as Japan and Sweden were early adopters of this unconventional measure, which was intended to combat the risk of deflation by boosting consumption. The European Central Bank is now one of the largest central banks to have been using it, but the UK is holding out for the time being.

If rates stay low for longer and even turn negative, this could have profound implications for how people decide to invest their money. Low yields on bonds could become locked-in, prompting people to avoid risky assets like shares in favour of gold. Gold is a fantastic way to invest, as it doesn’t offer a yield.

Returns from gold come from pure price action alone, and if a sustained upward trend is underway, gains are often to be had as the price begins to go parabolic.

Price pattern supportive of rally

Gold has enjoyed a stellar performance over the last five years. The price of gold has effectively doubled since 2015, taking it above £1,500 per troy ounce this summer for the first time. When gold enters into secular upward movements for such a sustained period of time, it tends to top out after a parabolic rise.

This kind of price pattern means some of the greatest gains in a gold bull market are often closer to the end of the run than the start.

Gold might have doubled since 2015, but a parabolic rise could mean the price is significantly higher. This all assumes that prices can sustain that trend, and the current economic turmoil is generally supportive of this.

Brexit remains unresolved in late 2020

One of the causes of potential future economic turmoil is Brexit. Despite the UK exiting the EU in January, the government’s aim of negotiating a deal looks remote at present. The Conservatives included a pledge in their December 2019 manifesto, saying a deal would be sought. Failure to achieve this would put the UK on the path towards a fully-fledged “no-deal” Brexit scenario.

Under this scenario, the UK would fall onto WTO trade terms, something which would impact supply chains in the UK for importers and exporters alike. The government was believed to be seeking a new arrangement similar to the Canada-EU trade deal. However, the UK made the sudden decision to pull away from talks unless the EU changed its approach.

Trade talks effectively stalled this month before starting again, but time is ticking for the UK to ratify a proper deal. This would need to pass through the parliaments of the EU27 in order to enter into force. Such a high level of scrutiny highlights the pressure that Government faces in the next few weeks, assuming a deal presents itself.

The economy has been volatile enough thanks to the pandemic. The recovery is fragile at present, and could go into reverse as restrictions return in key parts of the economy. An added Brexit shock due to a no-deal scenario could impede economic growth further and boost gold in the process.

Sources of VAT-free silver to change

One of the consequences of Brexit will be the source of VAT-free silver will have to change for many investors. The Gold Bullion Company is aware that investors often tended to seek silver based in Estonia and Germany. Low VAT differentials kept costs low up until now, but Brexit will change the UK’s trading relationship with the EU.

If a deal isn’t negotiated (that aforementioned no-deal scenario), UK-based investors trying to buy silver through Estonia and Germany will find a full 20 per cent VAT bill added to their purchases. This additional charge will be most unwelcome to anyone trying to preserve their wealth in precious metals.

Fortunately, the Gold Bullion Company has a solution - why not come to us and make a purchase of VAT-free silver today? Stored in a vault here in the UK, our VAT-free silver only applies this additional cost if you ultimately decide to have your gold withdrawn from the LBMA vaults and dispatched to you. Storage is safe and secure, and payment can be made by bank transfer without any complications.

If you ultimately choose to sell your VAT-free silver, our storage account system makes this possible

Brexit is key to precious metals

Whether you like it or not, Brexit is going to have an impact on the value of your gold or silver, and how you can make the most out of it. Negotiations are ongoing, so it pays to keep track of where they go, along with looking out for movements in the price of gold and silver.

If you’re looking to invest in gold and silver, give the Gold Bullion Company a call today on 01902 623 259 or contact us by post or email.

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<![CDATA[PAMP Suisse Silver Bullion Shines in 2020]]> https://www.thegoldbullion.co.uk/blog/pamp-suisse-silver-bullion-shines-in-2020/ https://www.thegoldbullion.co.uk/blog/pamp-suisse-silver-bullion-shines-in-2020/ Wed, 30 Sep 2020 23:00:00 +0000 When you see PAMP Suisse silver bullion bars, you know you have found bars of exceptional quality. Produits Artistiques Metaux Precieux or PAMP Suisse for short, is a leading light in the world of precious metals producers. The Gold Bullion Co. is proud to give PAMP Suisse the seal of approval with an array of attractive silver bullion bars for 2020.

Silver is a dynamic and lucrative precious metal to invest in, but if you want to get the inside track, you need to know what PAMP Suisse has to offer. In addition, you need to see why silver is such an alluring asset in uncertain times, when risk is high and investors are increasingly seeking safety.

PAMP Suisse - dedicated to secure silver investments

One of PAMP Suisse’s unique selling points when it comes to silver bullion is the wide array of products they have on offer, and the way in which they present them to buyers. Having been in operation in Ticino, Switzerland, since 1977, PAMP Suisse knows a thing or two about quality. They have a consistent track record in refining bullion for all sorts of purposes, including providing products for investments and gifts.

PAMP Suisse set a new high bar for other precious metals producers, when they introduced innovations such as selling small bullion bars in sealed packaging, as well as unveiling silver bullion bars with engraving on the reverse sides. These moves, especially the former, showed their ability to be top of the class in producing high-end silver items in a new way that guaranteed peace of mind for investors concerned about security.

When silver bullion buyers are keen to ensure that they get what they paid for, especially given restricted movement since lockdown was implemented in March, the security of bullion products is paramount. PAMP Suisse items, including the small silver bullion bars, are specially packaged in a way which ensures that you know the item hasn’t been tampered with en-route.

Silver provides greater potential gains

During times of economic uncertainty and high volumes of stimulus being pumped into the economy, precious metals often enjoy strong price rallies. Gold typically performs especially well, but silver can prove to be far more volatile, rising much higher as a result during precious metals price rallies.

A way to measure how well-placed silver prices are at present is best-served by looking at the relationship between gold and silver prices. As mentioned earlier, silver often enjoys a more exaggerated price rally when gold prices are on a roll. The two precious metals oscillate within a specific ratio relative to one another, and at current valuations, silver is vastly undervalued relative to gold.

While silver may be sitting below its 2011 peak somewhat, and in an apparent long-term bear market for the time being, gains have been impressive since January 2020. The price of silver has appreciated 28 per cent in just the last nine months alone, with the bulk of those gains in the last two months. This suggests that silver is picking up and price increases are becoming increasingly concentrated on the short-term. It doesn’t take much to make 28 per cent become an even greater gain, if the current trajectory is maintained through to year’s end, especially if surprises during the US election season jolt the markets for many weeks.

PAMP Suisse for 2020 - a new range of silver bars

PAMP Suisse has an eye-catching range of fantastic silver bullion bars for autumn 2020, including the Fortuna and Faith series. Both sets of PAMP silver bars are lovingly engraved with specially-tailored images, including religious items: the Romanesque Cross, a likeness of Lakshmi, a depiction of Mecca, the Lord Buddha and the Yisrael Chai design.

The Fortuna series features Fortuna herself in all her glory, as something of a good luck token for those wishing to make respectable gains in the silver markets. Bars come in all sorts of sizes, ranging from 1oz, all the way to 50g items for those wishing to make a more sizable investment. Not only that but we offer a special luxury single bullion bar display box complete with a gift card. This item is especially ideal if you wish to present your item as a gift to a loved one. It offers added security, while presenting your silver bullion gift in an ornate black box.

Prices for PAMP Suisse silver bullion bars are determined in line with official silver spot prices on the open market, so you know that each item you purchase from the Gold Bullion Company carries an up to date price. Check our Live Silver Spot Price chart to keep up-to-date with live silver prices to help time a purchase, while prices are cheap enough before the next major price rally.

Buy silver bullion online with the Gold Bullion Co.

Here at the Gold Bullion Co., we’ve been specialists in selling silver bars and coins for many years. Based in Wolverhampton, we have continued to show dedication in meeting the growing demand for precious metals items for investment purposes and gifts despite COVID-19 and the lockdown that ensued.

In the interests of health and safety while COVID-19 remains a public health concern, we continue to encourage those wishing to make enquiries about buying silver bullion to contact us online or call us on 01902 623 259. Our team will be more than happy to help with any questions you may have and facilitate any purchase you wish to make.

Purchases through the Gold Bullion Co. website are easy. Payment is swift and delivery of your items is secure. We look forward to continuing to stock PAMP Suisse’ latest array of 2020 silver bullion bars and look forward to meeting any requirements you may have.

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<![CDATA[Guard Your Wealth Against the Global Recession by Investing in Gold]]> https://www.thegoldbullion.co.uk/blog/guard-your-wealth-against-the-global-recession-by-investing-in-gold/ https://www.thegoldbullion.co.uk/blog/guard-your-wealth-against-the-global-recession-by-investing-in-gold/ Tue, 01 Sep 2020 23:00:00 +0000 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.

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<![CDATA[Time To Re-Group]]> https://www.thegoldbullion.co.uk/blog/time-to-re-group/ https://www.thegoldbullion.co.uk/blog/time-to-re-group/ Wed, 29 Jul 2020 23:00:00 +0000 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

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<![CDATA[Bullish Forecasts Predict Historic Silver Bull Run]]> https://www.thegoldbullion.co.uk/blog/bullish-forecasts-predict-historic-silver-bull-run/ https://www.thegoldbullion.co.uk/blog/bullish-forecasts-predict-historic-silver-bull-run/ Sun, 19 Jul 2020 23:00:00 +0000 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

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<![CDATA[The Complete Guide for New Gold Investors]]> https://www.thegoldbullion.co.uk/blog/the-complete-guide-for-new-gold-investors/ https://www.thegoldbullion.co.uk/blog/the-complete-guide-for-new-gold-investors/ Mon, 29 Jun 2020 23:00:00 +0000 As a novice gold investor you might be visiting an online precious metals marketplace for the first time. Perhaps you’ve heard of the tendency of gold to help investors batten down the hatches and ride out turbulent and stormy periods of economic uncertainty, downturns and even recessions.

If your interest has been piqued by the potential of gold to bolster your portfolio, 2020 might be the year for you to invest in gold. In this article we’ll guide you through everything you need to know about investing in gold and other precious metals. Perhaps it’s time to add some dazzle to your portfolio.

Gold prices are close to an all-time high

At the time of writing (June 26th) the gold price is £1,418 per troy ounce (the standard UK measurement for gold, approx. 31 grams), which is just £32 off the all-time high UK gold price of £1,450.85.

With many economic commentators predicting a UK recession as a result of COVID-19, prominent voices in the gold community are forecasting a resulting gold bull run, during which the gold price may well reach a new record. Demand for physical gold remains high in 2020, so now could be a highly opportune moment for a new investor to add precious metals to their investment portfolio, because gold could prove to be a safe asset amid coronavirus turbulence.

Gold often surges during turbulent market conditions

In 2019, gold prices reached an all-time high, as investors lost confidence due to Brexit uncertainty, and sought the safe haven of gold. This is because gold is considered resistant to periods of economic instability, in fact gold prices often rise during recessions. During the 2008 recession gold entered a bull run – a period where gold prices rise significantly – with prices more than doubling in just three years by 2011 to £1,182 per troy ounce.

Gold is a long term store of wealth

Newcomers to gold investing are often stumped by the question of when is the best time for them to buy gold online. The question that matters most is not when the best time to buy gold is according to gold prices, but rather when an investor can personally afford to purchase gold.

New investors often get lured into studying day-to-day price fluctuations in gold prices, but gold and other precious metals, in contrast to other forms of investment, are considered long term investments and the gains from buying when prices are lower should be viewed against the years of potential change that follow.

What is the difference between gold bars, coins and rounds?

Gold coins for investment can look similar to everyday currency, or can be more decorative and ornate in nature. Gold coins are generally fairly portable, often weighing 1 Oz. In general gold coins are a great choice for a first time investor, because they are available at relatively low value, and individual coins can easily be sold when you want to release equity.

Gold coins also make fantastic gifts for a loved one, can be an attractive decoration and are often collected by hobbyists.

Gold bars are often sold in greater quantities than gold coins. Small quantities, including 1, 2.5, 5 and 10 gram bars are available, however large gold bars can weigh up to a kilogram.     

Home delivery or secure storage?

One of the most common questions from investors new to gold is ‘where should I store my bars or coins?’ There are two options available, at home storage or a dedicated storage facility.

Those with small investments may choose to secure their gold at home using a secure storage space, usually a safe. Make sure you consider how much space you’ll need to safely house your gold, as well as enough space to expand your collection in the future. As an example, a 45 litre 81cm x 31cm x 18cm safe will hold around 10 kilograms of gold bullion bars.

Ensure your safe is protected against theft and environmental damage. Safes have a cash rating, this indicates the protection it provides. You’ll also need to ensure any home contents insurance policies you do have cover the value of gold you’re holding at home. You will also want to guard against environmental damage from fire and water damage. You can ensure you’re protected by choosing a safe that’s water tight and has a fire rating.

Larger investors often opt for storage facilities. We offer a range of safes and storage options for gold.

Track the live gold price

Our tool allows investors to directly track the live gold price. We base our price tacker on the live gold spot price in £ Sterling. The spot price is the standard at which a troy ounce of gold can be bought or sold.

We also have historic gold price charts which give a picture of how the gold price is trending. It shows the evening fix price of gold set each business day, we have records going back 50 years.

In addition to our gold price chart, check our silver price chartplatinum price chart or palladium price chart.

You can buy gold online VAT free

Investment quality gold bullion bars and coins are free from VAT. Gold for investment purposes has been exempt for VAT since 2000 by EU law. Other precious metals including platinum, silver and palladium will include a VAT charge, which can add a significant expense to your investment. This makes gold bullion bars and coins one of the most lucrative precious metals investments.

You can buy gold without Capital Gains Tax (CGT)

CGT is applied to the sale of an asset that has appreciated in value. It is applicable to many gold items, but not to legal tender. British legal currency including Gold Half Sovereigns, Gold Full Sovereigns, Gold Britannia and Silver Britannia is CGT-free.

Buy tax free gold today and benefit from a tax free investment opportunity.

How to buy gold online

Step 1 – understand the basics including terminology like spot price, troy ounce and more. Once you’re familiar with terms like this, research the products you might be interested in purchasing, whether gold or silver, coins, bars or rounds.

Step 2 – browse our website using our categories or search for a specific product in the search bar.

Step 3 – add you item(s) to the shopping cart and fill in your details, including payment details and shipping address, if you’re choosing to store your items at home. Visit our delivery page for more options, including collecting your items from our office.

Step 4 – click the checkout button and your free fully-insured delivery will be dispatched the very same day.

Step 5 – receive your items and let us know what you thought about our service levels.

Trusted by our customers

Our services are considered ‘excellent’ by our customers on Trustpilot, who have rated us 4.8/5.

Service levels

We recently posted an operational update to reassure our customers that the gold supply chain and delivery process have started to reopen after the interruption of COVID-19, due to safety concerns.

Read the message for full details on our temporary policies.

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<![CDATA[A New Gold Standard in the Making]]> https://www.thegoldbullion.co.uk/blog/a-new-gold-standard-in-the-making/ https://www.thegoldbullion.co.uk/blog/a-new-gold-standard-in-the-making/ Tue, 02 Jun 2020 23:00:00 +0000 The US dollar has been the lodestar for international trade for decades. It’s hard to find a commodity that isn’t priced based on dollars, and investors from around the globe can’t help but turn their eyes to the value of the currency itself.

Where the US economy goes, the world economy must follow. But one thing that could be taking shape suggests a decoupling from the US, with the dollar being relegated to a less important status, as gold regains its place in international trade.

The gold standard as exemplified by the Bretton Woods system has been gone for almost half a century, but elevated prices in recent years could suggest an unofficial gold standard already in the works.

A price too great to bear 

When the Bretton Woods system was in full swing after 1944, the idea was that currencies were pegged to the US dollar, and the dollar itself was given a fixed price relative to gold. As a result, gold prices were effectively static and the value of a nation’s currency depended on how much gold they had in their reserves. Britain faced a number of painful devaluations in the pre-1971 period, forcing them to reduce gold reserves. One of the latest sales in 1999 was estimated to have cost the UK as much as £14 billion.

But as inflation mounted in the 1970s, the US severed that crucial tie with gold, allowing the dollar to become a fiat currency. This allowed its value to float freely, and gave policy makers more control over the amount of dollars swishing around the global economy. As the dollar and the pound fell lower and lower over time, gold has done its job as a safe haven, soaring in value.

In that sense, the gold standard never truly went away. For investors willing to place their money into buying an asset with a centuries-old reputation for being an intrinsic store of wealth, the last few years have been highly rewarding.

As the British economy has been hit by shock after shock, gold has mounted an impressive price rally, taking it from less than £200 per troy ounce in the late 1990s to as high as £1,400 per troy ounce by May 2020. This outpaces the performance of stocks and shares, as well as the bond market, and as we shall see, gold is ripe for greater gains in the coming years.

Nowhere left to turn but gold 

Gold is in a special situation, ripe for investment, as so many other asset classes look increasingly overvalued by some standards, or overcrowded at the very least. The stock market has tumbled into a bear market, meaning it lost over 20 per cent and its performance depends on how quickly the economy can recover from the COVID-19-induced lockdown recession.

Bonds have been a suitable alternative to shares, especially since the unravelling of the Dot Com and subprime bubbles. Interest rates have fallen to virtually zero per cent, with bond yields falling in tandem, sending bond prices to record highs. However, with yields now hitting sub-zero or negative rates, the prospect for gains is incredibly slim.

Gold, by comparison, carries no yield and makes gains purely by price action alone. Assuming that you can time an investment wisely, you can make an inflation-adjusted positive return over time, which is just as well, because gold often surges during times of economic turmoil as evidenced by recent market moves. It took gold just five years to double in value, from £700 to £1,400 per troy ounce. If such a trend were to continue, as a baseline scenario, you could sell an ounce of gold for as much as £2,800 by 2025.

It might just be time to consider joining a growing number of investors and buy gold today. Prices are already hitting new all-time highs in pound sterling terms, and a breakout in US dollar prices could prove decisive in marking the start of a new bull market in gold. As stocks and bonds sink into low returns and a lack of profit over time, why not consider buying gold today?

The Gold Bullion Company is pleased to announce it has been able to resume dispatch of gold bullion items, but please note that new orders will take between three to four days to deliver. For more information about investing in gold today, contact the Gold Bullion Company here.

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<![CDATA[Operational Update]]> https://www.thegoldbullion.co.uk/blog/operational-update/ https://www.thegoldbullion.co.uk/blog/operational-update/ Wed, 20 May 2020 23:00:00 +0000 As national and international lock-down measures are eased and Covid-19 infection rates fall, the precious metals supply chains are once again beginning to stir into life.

We are now seeing improved delivery services and receiving stock that has been frozen in the system for some time.

As producers begin their efforts to resume production there are and will continue to be delays compared to the 'normal' supply chains of the past.

Our staff members have been working flat out to clear the huge backlog of orders, primarily caused by disruption to our delivery systems, and we can now see some light at the end of that tunnel.

New orders are generally being dispatched within 5 working days of receipt.

In order to keep the build-up of orders at a manageable level we were forced to impose a minimum order value of £1,000. That limit has now been reduced to £350 with immediate effect. We apologise for any inconvenience that this measure is causing and can assure customers that the limit will be removed as soon as possible.

We saw some eye-watering increases in premiums at the peak of recent demand but the worst of these are beginning to subside, particularly in respect of larger gold and silver bars, which allows us to begin to reduce margins. As this situation develops there will be apparent price discrepancies by brand but these will provide buying opportunities for customers looking for a bargain!

Clients wishing to sell items can once again send in to us by Royal Mail insured Special Delivery and we hope to announce the resumption of appointments at our offices in the near future for larger transactions.

A sincere ‘Thank You’ for the patience and understanding shown during this difficult time and for the many messages of encouragement and good wishes that we have received from customers.

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<![CDATA[Investing in Gold ... at Any Price?]]> https://www.thegoldbullion.co.uk/blog/investing-in-gold-at-any-price/ https://www.thegoldbullion.co.uk/blog/investing-in-gold-at-any-price/ Thu, 14 May 2020 23:00:00 +0000 Inflation is best viewed as something that, in reasonable amounts, can help deliver healthy economic growth and keep an economy on an even keel. Too high, and it erodes the value of the pound in your pocket, undermining confidence in the banks that hold your savings. Too low and it can result in a downward spiral that was last seen in the Great Depression.

Economists often consider a rate of inflation around two per cent as a good target rate, as this suggests prices in an economy are rising gradually. Demand is stimulated as people are more likely to bring forward spending to save money if prices continue to rise.

Times of economic dislocation, however, do much to disrupt the levels of inflation and our broader economic goals as a nation. But gold is at hand, as a means of protecting wealth, while other assets become worthless or overvalued.

Deflation - lessons from history

On the face of it, deflation might sound ideal. It means that price levels at one point are lower than at the same point the previous year. Each pound you spend becomes worth that bit more than before, as the value of everyday items drops. But deflation is often a symptom of some imbalance in demand, where there are simply not enough pounds being spent on a fixed amount of goods.

Retailers often slash prices, as they are currently doing during the lockdown, as a sign that demand for their products is too low. If you aren’t willing to buy a computer or some other product at one price level, the intention of slashing prices is to spur demand, as you might be lured in to buy the item at a discount.

The only problem with this model is that, if everyone takes a ‘wait and see’ approach, holding off spending, as they wait to see if things get slightly cheaper before actually buying, prices continue to drop, and consumer spending remains weak. If consumers delay spending in this way, businesses make less income and have less to pay in wages, reducing take home pay. The cycle perpetuates, as low-paid workers are less willing to make large purchases, causing falling prices and sluggish growth.

Japan and the US have both experienced this exact deflationary spiral before. The US saw this first-hand in the Roaring Twenties, while Japan experienced the bursting of an asset price bubble in 1990. A crash in the stock market led to the loss of capital, causing demand to fall in the housing market, bursting a housing bubble. The destruction of wealth fed into weak consumer spending and a deflationary mood became entrenched.

Unwise investments during the bubble years in both 1920s America and 1980s Japan led to excess speculation and mounting debt. When assets such as houses and shares in businesses crashed in value in the 1930s and the 1990s, the incentive to borrow and spend became far less appealing, while debts remained outstanding.

Post-COVID 19 deflation?

One of the signs of deflation is already apparent, during the current lockdown. Share prices crashed in March 2020, erasing millions of pounds worth of investments that had accumulated over a number of years. Money that could have generated future spending in the economy has now been permanently lost and that means many more millions of pounds worth of wages and further spending may never happen down the line, if you consider the potential multiplier effect of each pound spent.

Another sign of deflation manifests itself in the inflation of the bond market. Yields on government debt have an inverse relationship to the value of government debt. The lower the yield, the more valuable government debt becomes. In the UK, an investor is hard-pressed to find a yield much higher than 0.5 per cent, even on debt which matures in 2070. The lack of potential future gains suggests to some that the bond market is overly inflated, prompting investors to look elsewhere.

If interest rates are to remain near zero for the foreseeable future, there is little reason to expect significant yields to return to the bond market, locking in a deflationary mindset. Japan has been an early adopter of this low-interest low-yield approach, and it has so far done little to eliminate deflation. The UK could easily go down the same path in the 2020s, limiting the scope for future economic growth or inflation.

Gold could benefit from this enormously, as prices were estimated to have doubled during the 1930s, when the Great Depression was at its height and deflation was rampant. Prices currently sit close to £1,400 per troy ounce, having doubled since 2015. Therefore, it isn’t impossible to imagine prices reaching £2,800 or even £3,000 by 2025, if this trend is to continue.

Gold as a hedge against stagflation

Anyone who lived through the 1970s will recall how double-digit inflation occurred so frequently that commentators feared of a stagflationary mindset settling in. Trade unions were growing restless over pay increases, as oil prices spiked twice in one decade. Never before had economists witnessed rapid inflation coinciding with a period of stagnation, hence the term stagflation.

Double-digit inflation is anathema to economic growth in the long run, as it risks social cohesion, owing to the way it devalues the pound in your pocket. If inflation ran at 10 per cent per annum for just a decade, one pound at the start of that decade would eventually be worth just 38 pence when those 10 years were up, representing the dramatic loss in purchasing power. If banks keep your savings at a rate that runs significantly below the current rate of inflation, your savings are already losing value.

Gold proved to be a suitable alternative to eroded savings in the 1970s, as prices leapt from just £15 in 1970 to as high as £373 by 1980.

Many have been quick to point to record-low oil prices, as a way of suggesting that high inflation is highly unlikely. This fails to take into account the fact that the UK has seen an unprecedented level of stimulus from both the Government and the Bank of England. This stimulus has manifested in increased spending to support those furloughed during lockdown, as well as an additional round of quantitative easing. Both measures have the potential to inflate the economy by several billions of pounds, as a means to try and prevent deflation taking hold.

By making such a significant cash injection, policy makers could actually risk the opposite taking place. The money supply could increase, putting pressure on the pound, as too many pounds chase too few goods. Supply constraints could be an issue for some time to come, as exporters try to navigate a post-COVID world, as demand could surge after plunging sharply in 2020. With the Bank of England keen to keep rates low for longer, to avoid snuffing out any nascent recovery, and debts being high, it is possible that inflation may be tolerated for some time, as it serves as a way of helping reduce debt burdens over time. Economists often refer to this measure as inflating debt away. Whether it is a successful strategy is yet to be seen, as the economy is still seen to be moving downwards, according to the latest Markit PMI surveys.

Gold as a store of wealth

What makes gold so attractive, irrespective of whether the economy is going through a period of sustained deflation or stagflation? Gold has great intrinsic value, whatever the economic weather, and has a habit of being revalued to the upside during demand shocks, as seen during the oil shocks of the 1970s. The yellow metal had another great bull market during the crash of 2008 and the debt crisis that followed.

While stocks measure the value of businesses that can succeed or fail depending on the economic climate, and bonds measure an ever-diminishing return on government debt, gold shows a consistent upward trajectory, when it comes to price action. Bear markets in gold are often long lasting, but bull markets reward investors for their patience, as they can last up to a decade, based on price performance since the mid-20th century.

If gold’s last major cyclical low was in 2015, and gold prices have already doubled since then, gold could potentially continue to rise in value for another five years at least, based on trend alone. If you haven’t considered investing in gold already, 2020 could be the moment to do so, bull markets in precious metals often display a distinctive exponential price pattern. The leap from £700 to £1,4000 since 2015 may have caught some by surprise, but the next doubling certainly shouldn’t, especially since it could take gold as high as £3,000.

Gold feeds off weak market sentiment, so the longer a crisis persists for, the faster the price can be expected to rise. It can be difficult to time your entry or exit from the gold markets, but by getting in touch with the experts here at the Gold Bullion Company, who know something about how they work, you can time entry to coincide with potentially great gains.

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<![CDATA[Order Dispatch Resumed]]> https://www.thegoldbullion.co.uk/blog/order-dispatch-resumed/ https://www.thegoldbullion.co.uk/blog/order-dispatch-resumed/ Sun, 03 May 2020 23:00:00 +0000 Thanks to the hard work and determination of our team over the past three weeks, we have resumed deliveries to our customers and we have re-enabled card purchases on our website.

This has involved changes to our business model and practices and as a result we have amended our business terms and conditions accordingly.

Previously delayed dispatch orders for stock items held in our local vault are now being sent out but please bear with us as we clear a substantial backlog. Arrangements are in place to deliver, or to arrange safe collection at the earliest opportunity, of products vaulted within our supply chain.

From today, 04/05/2020, for new orders, where we hold stock in our vaults, we aim to dispatch within one to two weeks of us receiving the order.

Special orders, backorders and pre-order products will be dispatched in accordance with details included on the relevant product page, or as agreed with the customer, once our suppliers have delivered to us.

There are some products, particularly large silver bars, which are still ‘frozen’ within our international supply chain. Wherever possible we will offer more readily available alternative manufacturers to satisfy such orders but be assured that the orders affected are guaranteed at the locked in prices as the products have already been purchased from the suppliers.

We are working through order shipment by order of date received but due to reduced staffing levels and the sheer volume of orders we are unable to individually confirm when orders will be shipped. An email notification will be sent once your order has been dispatched. Please refrain from calling us for delivery information as this will divert staff from the task of clearing the substantial backlog. In order to keep order numbers at a manageable level we have been forced to adopt a minimum order value of £1,000 which will be removed as soon as possible.

Please also note that postal services and couriers are also experiencing challenges that are resulting in altered delivery practices and longer delivery times than usual once orders are dispatched.

As we gradually progress towards the resumption of normal services we would like to thank all of our customers, new and old, for your continued patience and understanding in these troublesome times.

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<![CDATA[COVID-19: The Beginning of Gold Standard 2.0?]]> https://www.thegoldbullion.co.uk/blog/covid-19-the-beginning-of-gold-standard-2-0/ https://www.thegoldbullion.co.uk/blog/covid-19-the-beginning-of-gold-standard-2-0/ Thu, 23 Apr 2020 23:00:00 +0000 NOTE: Due to disruption with couriers during the COVID-19 pandemic, we will be unable to dispatch items immediately. Rest assured that you can still make a purchase, which will lock in the price as it was on the day you made it. Dispatch will be guaranteed as soon as regular courier service is resumed.

The COVID-19 pandemic has highlighted the lengths policy makers are willing to go to in order to ensure that economic growth is preserved. Measures such as quantitative easing (QE), which have not been seen since the last global financial crisis, have been used once again as part of central banks’ toolkits.

These measures make sense, when you consider how low interest rates actually are. With the Bank of England’s base rate sitting at 0.1 per cent, there’s virtually no room left for future rate cuts, so policy makers must be creative in stimulating growth from now on. What makes QE so important as a policy tool is its ability to weaken the pound, and this could do much to spur a great price rally in gold in the coming months.

Could this be the start of a new bull market in gold, or even the dawn of a new gold standard altogether?

Money printing accelerates

Whether it’s the BoE, the Fed or the ECB, some of the world’s largest central banks are implementing QE. In response to the market turbulence caused by COVID-19, the BoE announced a new round of QE worth £200 billion, which will be used to purchase government bonds. The aim is to keep long-term interest rates low and help stimulate growth in the macroeconomy.

As a basic principle, if supply of a given currency or asset increases, the unit value of said currency or asset usually decreases. Unless demand is adequate to pick up additional units of currency, its value is highly likely to fall, and it is more than probable that the value of the pound is under intense downward pressure as a result of the BoE’s new round of monetary stimuli.

Gold traditionally benefits immensely during times of weakness in sterling. One has to think back only to the great devaluation of 1976, when the IMF had to provide the UK with a bailout loan, or the crash in the pound in 2008 and again in 2016. All of these devaluation episodes had a tremendous impact on the price of gold, pushing it to new all-time highs each time. If history is any guide, a weak pound could send gold prices to even greater heights in 2020.

Dawn of a new gold standard?

The 1970s marked the apparent death of the post-war gold standard under the Bretton Woods system. Its collapse ushered in a half-century of currency debasement and high inflation, allowing gold prices to rise exponentially on more than one occasion. Although the US and many other leading economies use a system of fiat currency to trade with other nations, something of an unofficial gold standard could be forming before our very eyes. The UK famously held significant gold reserves for many years, but the 1999 sale of reserves, during a time now referred to as Brown’s Bottom, saw billions of pounds’ worth of gold sold off by the UK Government, weakening its hand, just before a significant bull market for gold.

Countries such as the Russian Federation have observed such actions carefully, and have been quietly accumulating gold reserves over recent years, all the while selling off holdings in US treasuries, limiting exposure to the US in the process. This apparent de-dollarisation is just one step in a long journey away from the US dollar as a reserve currency in the eyes of certain groups. If the current crisis abates, Russia will benefit from a sizeable emergency reserve of valuable gold to weather future storms.

If the current turmoil proves to be a turning point away from American economic dominance, countries with healthy reserves of gold such as Russia could become as major players as they were historically. Reuters reported that the Central Bank of Russia was recently ordered to resume buying up gold, meaning that they now possess gold reserves worth up to $120 billion, weighing up to 73.6 million troy ounces.

Want to position yourself so your portfolio is ready in the event of a significant price rally for gold? The Gold Bullion Company has a wide range of suitable investments for those wishing to buy gold. Call us on 01902 623 259 or contact us here, to learn more about the benefits of investing in precious metals during a time of unprecedented uncertainty.

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<![CDATA[Gold to Receive a Boost from COVID-19 Disruption]]> https://www.thegoldbullion.co.uk/blog/gold-to-receive-a-boost-from-covid-19-disruption/ https://www.thegoldbullion.co.uk/blog/gold-to-receive-a-boost-from-covid-19-disruption/ Tue, 14 Apr 2020 23:00:00 +0000 It doesn’t take an economist to see that COVID-19 is the single most disruptive event to have hit the global economy since World War Two.

With over one and a half million people estimated to have contracted the novel coronavirus since late 2019, the decisive measures to lock down whole countries and halt the spread of the virus have done much to protect lives. Even so, the immediate economic impact is likely to be severe. Unsurprisingly, markets have responded.

A sharp sell-off in equities came after weeks of apparent euphoria, despite the mounting evidence of a looming epidemic which was already sweeping through East Asia back in February. Now we find ourselves in April, with the outlook for economic growth downgraded in even the most buoyant of economies.

In the meantime, while equities flounder, 2020 proves to be the year to buy gold, as it outshines other assets.

Bottleneck in gold supply

One of the primary reasons why gold prices have the potential to be elevated in 2020 and beyond is the significant bottleneck in supply that is occurring worldwide. Gold that hasn’t been melted down and remoulded from a pre-existing item will need to be mined and extracted from the earth, something which is highly labour-intensive.

Unlike currencies such as the pound and the US dollar, gold is finite and there’s only so much to go around. Based on the latest estimates, there are 18,000 tonnes of unrecovered gold in the US alone. When you consider how much earth and rock will need to be extracted in order to reach it, it sounds like a small number, considering how thick the Earth’s crust actually is.

With a growing number of countries adopting stringent lockdown measures to contain COVID-19 as effectively as possible - the US included - the world’s untapped supply of gold will have to remain where it is, and we’ll all just have to make do with what little gold we have already.

In Peru, mining activity has virtually ground to a halt, while South African gold producer Harmony Gold has revealed that a three-week lockdown imposed by the Government would result in them being able to produce just 650-700kg of gold, significantly below their usual productive capacity.

Supply is one thing, but what about the demand side of the equation?

Supply grows in atmosphere of fear

The Gold Bullion Company has noted a significant increase in enquiries about investing in physical gold to secure the value of wealth. This suggests to us that demand for gold is unusually elevated. If you were to look at the raw troy ounce price of gold in pound sterling, you would see that, despite its volatility, it has lacked the decisive upward shift expected by some.

Based on our own observations of the gold market, it is highly likely that the initial fall in gold prices during the general market turbulence made complete sense, if you consider just how many investors in the broader market were invested in gold exchanged-traded funds (ETFs). Otherwise known as paper gold, gold ETFs are backed by the real thing but lack the security of having an actual investment to reach out and touch. When the markets sold off sharply in March, many investors conducted a basic fire sale, selling off any assets they could to avoid losing money.

Gold ETFs were one of many investments that bore the brunt of this bonfire of assets, potentially distorting the actual price of gold itself in the process. Now that much of the paper gold has been flushed out of portfolios, the price action in gold markets is likely to start relating more closely to the intrinsic value of gold itself over time. With recent  US jobless claims data suggesting over nine million Americans could be out of work virtually overnight, the fuel is very much there for a significant new gold bull market.

Gold thrives in an atmosphere where job security is low and growth is weak, acting as something of an inversely correlated asset to the stock market. Where shares tumble, gold rises higher and higher.

In 2020, the price is right

Economists present moments such as the 2008 financial crisis as once-in-a-lifetime occurrences, but the last decade has surely taught us to expect the unexpected - not least when it comes to gold. Between 2011–15, gold prices peaked and trended down, leading some to call the end of the great bull market as part of the wider commodity super-cycle. In 2016, markets were astonished to see prices leap over 50 per cent in just a few short months.

The UK voted for Brexit and the US elected Donald Trump to become US President, during an ongoing global slowdown. The gold price started to trail sideways for the next three years as concern subsided, but the seeds of the next bull market were already being sown, and since late 2019, prices have been surging again. In nominal terms, UK gold prices are close to all-time highs, but this could be just the breakout phase. With new highs made, it’s easy to imagine a melt-up taking place, propelling gold to new highs.

When you consider that inflation has been a constant since that original peak in 2011 and that gold prices have only just started hitting new highs again, inflation-adjusted prices remain below that 2011 peak. This means there’s still room for a further rally. A savvy investor sees more than just the raw numbers, when looking to invest in gold. Bear markets in this precious metal often seem long and arduous, but, when it returns to a bull market phase, the gains often unfold at a rapid pace, with prices spiking exponentially.

Remember how gold surged to high after high in the 1970s, taking a decade to peak? And again in the 2000s? When a bull run starts to take off, price levels start to whizz by at a dizzying pace. Who knows what level gold prices could come to rest at when the coronavirus crisis is finally over?

Recession-proof safe haven

Downturns are unfortunate times for many, entailing heightened job insecurity and diminished confidence. In the 1970s, stagflation sapped much of the UK economy’s vitality, prompting a long-running devaluation of the pound. Inflation ate away at savings, and sky-high interest rates crippled any prospect of growth for a time. It was an era without any clear exit - but gold led the way.

The 2008 financial crash was another seemingly endless stream of crises, one after another. First the global financial system was at risk. Two years later, the Eurozone was seemingly on the brink of collapse. By 2016, emerging markets were feeling the pain acutely. Now, as COVID-19 brings the global economy to a standstill, everyone is feeling the pain again, making COVID-19 the ultimate black swan event. And yet out of nowhere, the pandemic has given the impression that there are very few safe havens.

Confirming the suspicion of many, the latest data from IHS Markit suggests that the UK economy contracted sharply in March 2020. If this contraction were to continue into the summer months at such a rate, the UK economy is highly likely to enter a recession for the first time since 2009. The lockdown restricts the movement of people, so consumer spending is stifled. Weak consumer spending leads to lay-offs and wage cuts, or even the collapse of entire businesses. Those finding themselves out of work lose a steady source of income, diminishing their purchasing power, stopping them from spending, and thus the cycle continues.

The current predicament will end eventually but, as with many downturns, as the economy takes a hit, so gold responds inversely. It is highly likely to respond by rallying significantly.

Buy gold from the Gold Bullion Company

Lockdown brings about its own challenges for us as a business. Here at the Gold Bullion Company, we have faced disruption with couriers, which means we are unable to dispatch any orders for the time being. However, what we can do is facilitate orders through our website, with the guarantee of locked-in prices at the time of purchase, as well as speedy dispatch as soon as full service can be resumed.

We provide a top-notch service, having made over 100,000 deliveries over the course of our existence. We hold a rating of 99.6 per cent from over 9,000 customers, and we base transactions on real-time pricing to ensure that you can make a purchase at some of the most competitive rates on the gold markets.

Furthermore, when delivery is finally assured, it is fully insured. As the price of gold climbs to record highs in the coming months, lock in those prices by investing in bullion with the Gold Bullion Company today.

If you would like to learn more about investing in gold with us, call us on 01902 623 259 or contact us here for more information.

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<![CDATA[Gold - A Safe Asset Amid Coronavirus Turbulence]]> https://www.thegoldbullion.co.uk/blog/gold-a-safe-asset-amid-coronavirus-turbulence/ https://www.thegoldbullion.co.uk/blog/gold-a-safe-asset-amid-coronavirus-turbulence/ Fri, 20 Mar 2020 00:00:00 +0000 It is difficult to have been able to predict how quickly markets can deteriorate, but 2020 has continued to prove just how volatile they actually are. COVID-19 began as very much a Chinese health issue, but the virus has now developed into a global story.

Markets have reacted sharply to its spread, and this makes it clear which assets are best-suited to navigate these choppy waters. Stocks have been one of the biggest losers in recent weeks, having corrected sharply on expectations that the virus will weaken economic growth. In contrast, gold has rocketed to new highs in pound sterling terms.

Read more about what COVID-19 means for gold as an investment.

Assets jostle for the top spot

Investors traditionally juggle a number of assets in any given year - stocks, bonds and commodities, for example. Diversity is crucial for any portfolio, as some assets move in tandem, and some go down at once. It helps to have an asset with a negative correlation, which moves higher to compensate.

As stocks and shares have lost value in recent weeks, on fears about the spread of COVID-19, markets have priced in the prospect of central banks stepping in to cut interest rates. As a result, bond yields have fallen ever closer to zero, as bond prices have hit new highs.

If inflation continues to run at two per cent over the long term, investors will lose money in real terms, by a significant margin.

Gold is able to enjoy the price rally that bonds have seen, but as it doesn’t have a yield as bonds do, investors have benefited from a price rally without having to worry about diminishing returns as bond investors have seen.

Stay up to date on gold prices, using our Live Gold Price Tracker.

Volatility returns to the markets

For a number of months, volatility appeared to have dissipated, after a rocky 2018 in particular. We’re barely three months into 2020, and volatility has spiked again, with emergency interest rate cuts to allay fears of a global slowdown. Early data suggests that COVID-19 has had a particularly negative impact on the Chinese manufacturing sector.

This could lead to a spill-over effect, given that the world’s second-largest economy is effectively at a standstill, having been a dynamic source of economic growth for years. Gold prices are rising, as gold is pricing in a desire for safety by investors.

Precious metals such as gold have a history of spiking during times of great uncertainty - the 1979-80 Soviet invasion of Afghanistan, or in the aftermath of the EU referendum in 2016. Gold spikes during times of peak stress in the markets, and if you have a little bit of gold in your portfolio already, you can attest to having made some decent gains already.

Stocks and shares relate to businesses which can fall foul of economic downturns, causing them to collapse entirely, if sentiment worsens to an extreme extent. In comparison, gold is gold and always will be. You can invest in this asset, knowing it won’t go bankrupt or request a bailout, as financial institutions did in 2008.

Something which has contributed to jittery market sentiment is the uncertainty about just how many people have been infected by COVID-19. The official global count suggests over 100,000 confirmed cases, and over 3,000 deaths. However, not all countries count cases in the same ways, meaning these numbers could be more retrospective at best.

A global story that helps gold

The COVID-19 story has been quite so powerful because of its global impact. What allegedly started as a Chinese health issue in a wet market in Wuhan has now spread around the world. The majority of cases are estimated to have stabilised in China, largely thanks to the Chinese authorities being more capable of using draconian measures to put the country on lockdown.

Liberal democracies such as the US, the UK and Italy might not be so capable of adopting such measures, meaning the virus could behave in a different way entirely. In the meantime, it helps to stay informed and keep track of case numbers as this story continues to evolve.

Check out this COVID-19 dashboard, to view the latest estimates for infections.

Suitable gold items to consider investing in

Whatever happens, gold has certainly been a great beneficiary of the market turbulence.

The Gold Bullion Company has a number of gold items to consider investing in, to secure your wealth and weather any stress in the global markets. Prices have spiked to as high as almost £1,300 per troy ounce, so any item you choose, whether that’s gold coins or bullion, it will be worth more now than ever before.

Consider our 2020 1oz Gold Britannia coin – priced at £1,339.96 at the time of writing, it is VAT-free and exempt from Capital Gains Tax. To really seal the deal, we guarantee free delivery. Alternatively, we have a range of gold bars, from just one gram to bars weighing 100 grams and above.

Want to be able to invest in gold but need a safe place to store it? We offer 12 months’ free allocated storage solutions. This ensures that any gold item you purchase can be locked down in maximum-security storage away from your home, with at least a year’s free storage. Following this 12-month period, you can continue to store your gold with us for as little as £6 per month.

Whichever way you choose to invest in gold with the Gold Bullion Company, it’s clear that gold is in a bull market, and could move higher and higher, while concerns over COVID-19 continue to grow. Call us on 01902 623 259 to get in touch today.

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<![CDATA[Covid-19 Update]]> https://www.thegoldbullion.co.uk/blog/covid-19-update/ https://www.thegoldbullion.co.uk/blog/covid-19-update/ Wed, 18 Mar 2020 00:00:00 +0000 The Coronavirus continues to spread throughout the world and is now impacting the precious metals supply chains.

Most national mints, including The Royal Mint have already sold out of stock of silver bullion coins and are desperately playing ‘catch up’ with new production runs.

International supplies from manufacturers such as PAMP, Metalor and Emirates Gold are subject to disruption and deliveries may even be halted during transit if travel restrictions become more restrictive.

We have seen unprecedented demand for bullion products in the last seven to ten days as investors capitalise on a drop in the prices of precious metals brought about, many experts think, by profit taking by major funds that are trying to make up for losses on stock markets.

As bullion products become more difficult to source, it is inevitable that premiums will increase somewhat but we will continue to attempt to source products that represent the best value for our customers.

Over the last weekend Royal Mail changed the way in which it delivers Special Delivery parcels and no longer requires a signature to prove delivery. This action was not announced to us in advance and has caused considerable disruption to our delivery system as we can no longer insure deliveries using the Royal Mail system.

The result was that we had to suspend the ordering facility on our website, as did many other dealers, whilst we re-configured our system and, more importantly, worked through several hundred orders to contact customers whose deliveries were either already in transit or due to be dispatched.

This process is almost complete and we hope to have our website re-instated and Customer Service lines re-opened later today 18th March.

There will be some changes to our ordering system:

  • We are unable to accept debit or credit card payments for orders until further notice.
  • All payments must be made by bank transfer from a UK bank account.
  •  We are unable to dispatch orders until further notice, which will be when the Royal Mail system reverts to a state which gives sufficient safeguards to allow us to insure precious metals in transit.
  •  All orders will be available for collection, by appointment, from our Wolverhampton offices.
  • Alternatively, dispatch of orders will be delayed until the resumption of a suitable and insurable delivery service, at which point orders will be dispatched at no additional cost. Delayed dispatch orders will be held in our fully insured vaults, free of charge for up to six months. Parcels that are held by us for delayed dispatch will not be ‘storage orders’. (Customers who may wish to sell items from storage should select the ‘buy for storage’ option when purchasing.) 

All items listed on our website will be physically available to order and we will update availability as we receive additional stock.

We apologise for the inconvenience that these changes may cause but our aim is to maintain a reliable system where customers can lock in prices in this volatile market in the face of an increasing crisis.

At present all of our staff remain well but we are planning ahead to enable continued service should any of our small team be required to self-isolate.

We wish you all good health in the coming weeks.

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<![CDATA[Gold Price Increases due to Coronavirus Concerns]]> https://www.thegoldbullion.co.uk/blog/gold-price-increases-due-to-coronavirus-concerns/ https://www.thegoldbullion.co.uk/blog/gold-price-increases-due-to-coronavirus-concerns/ Tue, 18 Feb 2020 00:00:00 +0000 Early 2020 has proved to be an interesting time for investors looking for a gold price increase as the coronavirus crisis continues to spook the markets.

At the latest estimate, over 43,000 cases of COVID-19, the new virus’ official name, have been confirmed in mainland China and beyond, while the death toll has risen above 1,000. The World Health Organisation designated China as having a Very High risk level in its latest risk assessment, while saying the global risk level was High.

Understandably, the growing number of cases and the reaction to the virus by Chinese authorities has led to equities becoming volatile, and investors piling into more safe-haven assets such as government bonds and precious metals leading to a gold price increase. This flight to safer haven investments goes a long way towards explaining why gold price is increasing.

For more information about the latest gold prices, check out our Live Gold Price Tracker.

Virus weakens China’s economy

As with the 2003 SARS outbreak, the spread of COVID-19 is likely to dampen economic growth in China, which is currently the world’s second-largest economy. This hit to growth couldn’t come at a worse time for the Chinese, as the economy is already facing significant headwinds, in the midst of an ongoing trade war with the United States.

Economic growth has already fallen to six per cent in recent quarters, a level below the depths seen during the 2008 financial crisis. The impact of COVID-19 remains unclear due to the lack of available hard data for early 2020, but economists expect factors such as the shutdown of businesses and travel restrictions could push growth as low as four per cent in the first half of this year, according to some estimates.

Such weakness in one of the world’s leading economic powers would do much to disrupt economic growth in nations with close ties to China.

In the meantime, gold prices have gained immensely, having risen over 12 per cent since the start of the year, to over £1,220 per troy ounce. Despite the sizable gold price increase in recent weeks, gold remains below its 2019 peak, but another shock to the global economy could be all it takes to propel prices to a new all-time high.

Gold rallies in deflationary environment

Gold’s recent price rally might baffle some, as a slowing Chinese economy represents a significant deflationary shock to the global economy at large in the coming year. Investors have often viewed gold as being an asset that typically performs exceptionally well in times of higher inflation, as opposed to times of deflationary pressure.

During the 1970s, both gold and oil famously enjoyed great bull markets, as the stagflation crisis hit industrialised economies worldwide. In the last few months, oil has been underperforming, especially since the outbreak of COVID-19, but gold has rallied higher and higher.

To explain this apparent divergence from the norm, it’s important to recall the performance of gold during the great bull run of 2001-11. Some of the greatest gains in the last great bull market for gold occurred during times of market turbulence, when deflationary shocks hit equities and pushed most commodities lower.

Gold continues to act as 2020 vision

Just four months ago, we told you that gold is a form of 2020 vision, at a time when markets remained volatile, and investors looked for safe places to make investments for the long term.

Gold as an investment is ideal, as the past few weeks have shown, with fear returning to the markets. This has led to a gold price increase that could allow the precious metal to make fresh highs imminently. It might be worth considering buying gold now to bolster your portfolio and protect it, in the event of persistent volatility in 2020.

To remedy shocks to the economic system, why not consider the 2020 Full Gold Sovereign?

Weighing 7.98 grams, VAT and CGT-free, the 2020 Full Gold Sovereign coin depicts Queen Elizabeth II in her 68th year on the throne, a fitting tribute to the stability of her reign, and surely a gold coin that could prove to be most invaluable stable investment in the coming years of market uncertainty.

In addition, we offer the 2020 1oz Gold Britannia. Struck in solid 24-carat gold, showing Britannia herself in all her resplendent glory, this coin makes for a suitable investment, and we’ve noted marked demand for it, so make sure to take a look at it while stocks last.

What next for gold in 2020?

Before the COVID-19 outbreak, there was an apparent mood of reflation in the markets, which displayed a risk-on approach, amid rising optimism that the global economy had turned a corner - despite a number of yield curves inverting (a good predictor of an imminent downturn) across the world.

The emergence of COVID-19, the Chinese government’s response and the potential hit to growth as expected by some economists highlights the sense of taking caution for so-called “black-swan” events.

A gold price increase has traditionally accompanied unforeseen periods of apparent instability - remember the Soviet invasion of Afghanistan in 1979-80, or the immediate aftermath of the Brexit referendum in June 2016 and a gold value increase would seem likely in response to COVID – 19.

Gold is an adaptable asset, and while it has been easy to assume it was simply dormant for a number of years, following its initial peak in 2011, uncertainty and human nature remain a fact of life. At times of peak stress, gold prices have continued to suggest sizable demand for the yellow metal, as the ultimate safe haven.

If you wish to learn more about diversifying your portfolio by investing in gold or other precious metals, don’t hesitate to get in touch with the Gold Bullion Company.

For more information about buying gold, call us on 01902 623 259, to hear from true specialists in the field of gold investments.

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<![CDATA[Gifting Gold For Valentines Day]]> https://www.thegoldbullion.co.uk/blog/gifting-gold-for-valentines-day/ https://www.thegoldbullion.co.uk/blog/gifting-gold-for-valentines-day/ Wed, 29 Jan 2020 00:00:00 +0000

Giving your loved one the gift of gold for Valentines Day is the perfect way to say ‘I love you forever.’

If you’re looking for a unique and thoughtful gift for the one you love this Valentine’s Day, take a look at our range of beautiful gold coins. Gold is a precious commodity that has always carried romantic connotations. It can last forever and is highly valuable, and therefore, sends a strong message of love when given as a gift.

Although it’s more usual to give jewellery, why not send that special someone gold for Valentines Day in the form of a commemorative gold coin or even a gold bar to show them just how special they are.

Here are some of our most special Valentines Day gold products that will make incredibly romantic gifts.

The Gold Britannia Coin

This 24-carat Gold Britannia coin can be packaged in a tailor made leather and velvet-style case to present it perfectly. It carries the image of the legendary goddess Britannia, who has become an iconic symbol of Britain, but also of female strength and power. This coin can be dispatched today.

The 2020 Gold Sovereign Coin

The 22 carat Gold Sovereign Coin is one of the best loved gold coins in the world, having been produced by the UK Royal Mint for over 200 years. The 2020 edition of the coin bears the iconic George and The Dragon design and the latest portrait of her Majesty Queen Elizabeth II.

1 Gram Gold Bars

Did you know you can buy a 1 gram gold bar for under £50? Imagine that special person in your life receiving a solid bar of 24-carat gold for Valentines Day. You can also purchase a presentation box to show off the natural beauty of the gold.

10 Gram Rosa Gold Bar

For perhaps the ultimate romantic gift of gold for Valentines Day, what about a gold bar with an image of a rose? The Rosa Gold Bar carries the timelessly romantic image of a single rose, which is sure to delight and surprise your Valentine.

Buying Valentines gold bars and coins is, of course, a romantic gesture, but it also conveys the message that you want to look after your loved one’s future. Investing in gold has been a popular choice during uncertain times and can offer a sense of security to whoever receives it. Gold is a tangible asset that can hold its value through times of great turmoil – just like true love.

View our range of Valentine's Day Gifts here.

 

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<![CDATA[How to Clean Tarnished Silver]]> https://www.thegoldbullion.co.uk/blog/how-to-clean-tarnished-silver/ https://www.thegoldbullion.co.uk/blog/how-to-clean-tarnished-silver/ Tue, 28 Jan 2020 00:00:00 +0000 scrap-metal
 

Anyone who has owned silver, whether in the form of jewellery, personal effects, household items or bullion products, is aware that the shiny precious metal can become discoloured by tarnish. But what tarnishes silver and where can we learn how to clean tarnished silver? 

In the case of Sterling Silver, which is an alloy of 925 parts silver with 75 parts other metals, usually copper, tarnish is predominantly due to the reaction of the base metal constituents with sulphur in the air. This reaction produces copper sulphide as a layer on the item’s surface which changes colour as the layer of tarnish grows. Hence, an initial yellow discolouration changes through reddish-brown to blue and eventually to black over time. This reaction can be seen very quickly if a silver spoon is exposed to the sulphur-rich yolk of a boiled egg. 

Whilst some people welcome tarnish on items as it can give an impression of age and an antique look, in the main it is regarded as a nuisance at the very least. 

Purer silver, particularly 999 investment grade silver bars and silver coins bullion products, are less susceptible to tarnish but will still discolour over time as silver sulphide develops on the surface of the item, particularly when stored in poor conditions. 

Ideally, silver should be stored in dry conditions with a relative humidity of less than 50%. The use of domestic gel packs which absorb moisture or even a few sticks of chalk can be helpful in reducing humidity in storage. Special tarnish reducing bags and cloths can be utilised to slow the tarnishing process of items in storage but the use of wooden draws and storage cupboards is not advised as the wood can retain moisture which will accelerate the process. 

Avoid handling items with your bare hands as human perspiration and fingerprints contain oils and salts that can trigger a corrosive reaction with silver. Whenever possible wear cotton or vinyl gloves and avoid contact between silver and woollen fabrics as wool has a high sulphur content. 

If we assume that airtight, temperature and humidity controlled storage facilities are beyond the purse of most owners of silver then we must accept that tarnish to our silver, to some degree, is inevitable. 

This then leads to the question of how to clean tarnished silver. As mentioned above, some owners like to see tarnish on items as it gives an antique look. Indeed, one US silver bullion manufacturer in particular actually promotes a wooden storage box system to aid the tarnishing process to produce an ‘old west’ style patina on products. 

For those owners who reject the idea of tarnish on silver there is a vast array of specialist cleaning products available ranging from light cleaning cloths to pastes and dips. More drastic solutions can be seen when searching online but frequent use of harsh solutions is likely to cause damage. Indeed, any form of cleaning is going to reveal a surface that tarnish is free to attack again. There is an argument that cleaning actually encourages tarnish to flourish. 

If you do decide to clean silver, the best advice is to proceed gently. Use the least harsh method available and always test your cleaning method on an inconspicuous area of the tarnished silver first. 

If you have a tried and tested ‘go to’ solution for how to clean tarnished silver then feel free to share it via info@thegoldbullion.co.uk and we will pass on your  tips. 

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<![CDATA[Gold Price Forecast for 2020]]> https://www.thegoldbullion.co.uk/blog/gold-price-forecast-for-2020/ https://www.thegoldbullion.co.uk/blog/gold-price-forecast-for-2020/ Mon, 20 Jan 2020 00:00:00 +0000 The UN officially recognises as many as 180 currencies in active circulation, across 195 countries. You can bet your bottom dollar, pound or yuan that where there’s money, there’ll be gold. The only issue is that one troy ounce of gold can be worth drastically different things, depending on the currency you’re using.

If you’ve been checking the value of gold, especially looking at UK gold prices, you’ll see prices have outperformed gold as priced in US dollar terms. Why is this so, how is the price of gold actually measured and how do we decide on a gold price prediction 2020?



The dollar dictates sentiment

To fully understand why the gold price behaves the way it does, you need to start by looking at the US dollar. It’s the world’s largest reserve currency, and historically speaking, the performance of the US dollar or the US economy as whole dictates how high or low gold prices will go.

The Gold Standard of days long gone kept a lid on prices for many years, and a country’s fortunes were heavily dependent on how much gold was held within its national borders. After 1944, the Bretton Woods system kept currencies in check, and if you were a country with a falling supply of gold reserves, you would be likely to have to devalue your currency, in line with the requirements of the Gold Standard.

The 1970s changed everything - in 1971, President Nixon’s pivotal role in ending the Bretton Woods system led to the dollar becoming what is termed a fiat currency - its value was now determined based on the physical supply of dollars sloshing around the currency markets. High inflation soon followed, and now that gold was no longer constrained, it reacted strongly by soaring in value.

Half a century later, gold remains a safe haven in times of economic distress. Moves to devalue the dollar almost always result in higher prices, but financial shocks also help push prices higher, as investors buy gold, if other assets suddenly crash in value.

To keep an eye on where the UK gold price 2020 is currently at, check out our free Live Gold Prices chart - it’s updated every few minutes, giving you an insight into where precious metals are heading. This will help you to your own gold price forecast 2020.

The Gold Fix - how it impacts gold prices

You might be asking, how are gold prices actually measured? In short, they’re fixed.

No, we don’t mean they’re inaccurate or rigged. The Gold Fix simply means that the price is set twice daily (10:30am and 3pm London GMT) by the ICE Benchmark Administration during a conference call, where they ultimately determine where the price is, in US dollars. In addition, sterling and Euro prices are available, but purely indicative ones, for settlement purposes only.

Something that UK-based gold investors have seen in the last five years is that gold has shown a particular outperformance in pound sterling terms, compared to the dollar. But how could this be? The US and the UK share a language, and their economies aren’t too dissimilar in per-capita terms.

Simply put, the volatility in the UK gold price stems from fluctuations in the currency markets themselves. 

The pound has been steadily devaluing against the US dollar over the last 150 years, with two large devaluations more recently in 2008 and 2014-16. During the last 20 years, gold in UK terms tracked the US price, as gold prices enjoyed a decade-long bull run.

However, sterling weakness from 2010 onwards led to greater upward momentum, purely due to this currency effect, meaning that despite gold peaking in dollar terms in 2011, it managed to break out to a new all-time high in sterling, as it was grinding upwards, slowly but surely.

2019 was a great year for record-high prices in the UK, hitting over £1,200 per troy ounce. The gold price forecast 2020 could see an even greater bull run, if the pound remains weak, due to Brexit fears over the coming year.

Dubai’s gold price dilemma

In the case of Dubai, gold prices haven’t always been what they seemed. Dubai is one of the largest emirates of the UAE, and is well-renowned for its great gold markets or souks, and the jewellery, coins and gold bullion you can buy. Investors will know that Dubai has a massive supply of the yellow metal, and there are attractive reasons to invest in and store gold in this part of the world.

Despite that, gold prices have been slightly tricky to measure until recently. In 2015, Dubai’s Department of Economic Development (DED) realised gold sellers were potentially confusing tourists, so it stepped in to force them to change their ways, setting out guidelines for ensuring that all gold sellers installed screens in their shops, displaying an “official” price of gold which was uniform from seller to seller.

The initiative was enforced, as they wished to eliminate the perception that foreign buyers would be feeling deceived in some way, having some sellers demanding higher prices than the markets had intended. One thing of interest to investors is that the DED also decided to make moves to protect Dubai’s gold and jewellery industries, by placing a three to five per cent mark up on gold prices.

Gold prices - not what they seem

The case of Dubai goes to show that gold prices can be radically altered, especially by government intervention. Higher UK gold prices due to sterling weakness also demonstrate how the economic vulnerability of a country can be a great determining factor in ensuring higher gold prices.

Here in the UK, our January gold price for 2020 remains close to those all-time highs in 2019, while gold investors in the US are still remaining stuck at lower levels. This means if you’re thinking about investing in gold, especially with us here at the Gold Bullion Company, it’s important to consider how sterling is doing when considering the gold price forecast 2020.

Not only that, you need something of a double or even 2020 vision, by being mindful about price action in dollar terms too. Tensions in the Middle East, concerns over the ongoing trade war and the impact of Brexit are all factors that could help push US prices higher, and if the pound weakens further, you could reap even greater rewards.

If 2020 feels like the time for you to start taking a chance by investing in gold, why not get in touch with us, here at the Gold Bullion Company today?

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<![CDATA[Safe Haven Demand Is Still A Real Concept]]> https://www.thegoldbullion.co.uk/blog/safe-haven-demand-is-still-a-real-concept/ https://www.thegoldbullion.co.uk/blog/safe-haven-demand-is-still-a-real-concept/ Tue, 14 Jan 2020 00:00:00 +0000 The recent killing of Iranian general Qassam Soleimani by the US in Iraq sparked ‘safe haven’ buying of gold amid fears that the US drone strike could be the first step towards a re-escalating conflict in the Middle East. As a result, on Monday 6th January, Gold Prices in $USD rose to hit levels not seen since early 2013 at $1580 per ounce, reflecting a rise of around 4% in a week.

Overnight on the 7th to the 8th of January retaliatory missile strikes by Iran on US military bases in Iraq prompted a further spike in the Gold Price.  The lack of US casualties may or may not have been intentional on the part of the Iranians but the action drove the Gold Price above $1600 per ounce. The world then appeared to hold its breath awaiting a US response but the price rise quickly abated when it became clear that no instant response from the US was materialising. Prices in $USD then fell back slightly over the next 48 hours as tensions eased and they eventually stabilised in the region of $1550 per ounce.

Many analysts believe that this $USD price ‘break out’ could be the trigger for a sustained period of price increases known as a bull run, often preceded by a lull in price movement as the market consolidates after an initial steep rise.

 It is interesting to note that these price rises were in the Dollar Gold Price which sets the benchmark for global rates. Prices in other currencies rose depending on the $USD exchange rate for each currency. These price increases are very different from the record breaking increases that we have seen in the £GBP price during 2019 which mostly resulted from a weakening of the Pound against the Dollar amplifying the extent of rises in the $USD global price.

Silver Prices have also risen during the recent tensions. Having experienced a three month low of $16.58 per ounce in early December 2019, Silver followed the Gold trend during the recent crisis, reaching $18.43 on 6th January and $18.57 on the 8th. Again, following a stabilisation of the political situation, Silver has fallen back to roughly pre-crisis levels.

It remains to be seen how the US/Iran situation will develop but this price movement certainly reinforces the understanding that gold is still seen as a safe haven for investors during times of geopolitical uncertainty.

The fact remains that the current crisis is by no means over and simply adds to a growing list of potential flashpoints and global tensions. The ongoing trade disputes between the US and China and the potential for a resumption of the war of words, or worse, between the US and North Korea all highlight the fact that the US faces multiple and varied threats to its military and economic supremacy around the world.

It has long been suggested that the Middle East is likely to provide the spark for the next global-scale conflict. Despite the current lull in activity in the region, changing alliances and renewed military build-ups with many groups acting as proxies for countries within the region all make for a very volatile and unpredictable period in global history.

The need for a ‘safe haven’ for investors’ funds is unlikely to be disputed for some time to come.

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<![CDATA[Year of The Mouse Gold Set to be Popular With Investors]]> https://www.thegoldbullion.co.uk/blog/year-of-the-mouse-gold-set-to-be-popular-with-investors/ https://www.thegoldbullion.co.uk/blog/year-of-the-mouse-gold-set-to-be-popular-with-investors/ Wed, 18 Dec 2019 00:00:00 +0000 The signs of the zodiac have something of their own creation myth. Depending on who tells it to you, it begins with either Buddha himself or the Jade Emperor assembling a meeting of all the great animals.

The Mouse, a nimble and cunning little creature, was one of the quickest to arrive, being given the honour of being the first sign of the zodiac. In comparison, the Pig was slothful and lazy, falling asleep along the way, arriving late. Unsurprisingly, the Pig was given the honour as the 12th and final sign of the zodiac.

As the price of gold seemingly enters into a Pig-like slumber at the tail end of 2019, 2020 could prove to be a year for more cunning investments, as the Year of the Mouse returns once again with the latest offerings of New Year Gold.

Fortune favours the Mouse

2019 has been a year of highs and lows for the gold markets. It got off to a slow start, with prices staying range-bound for much of the first half, in anticipation of the UK’s original expected EU withdrawal date in March 2019. However, that simply wasn’t to be.

Brexit was delayed, political uncertainty soared and a change in government led to gold prices soaring to an all-time high of £1,275 per troy ounce, back in September. As summer turned to autumn, investors began to await signs of a resolution to the Brexit saga, with gold selling off by almost 15 per cent in just three months.

Prices are now closer to £1,124, but prices remain over 10 per cent higher than they were at the end of 2018, indicating how resilient the recent bull run has proved to be.

Just as the Mouse was able to show great speed and cunning in the old fable, the Year of the Mouse could be just the year for investors to buy gold and find a suitable opportunity to lock in some great gains, as we head into the new decade. Mouse and Rat are both acceptable translations of the Lunar character and some mints and manufacturers have produced Year of The Rat gold bars and coins whilst others have produced Year of The Mouse gold designs.

Not out of the woods yet

This month’s election resulted in a victory for the Conservatives, with an 80-seat-strong majority, the largest the party has won since the height of the Thatcher era in 1987. However, great political gains don’t necessarily translate into strong and stable markets.

Thatcher’s third victory in 1987 was followed by a jaw-dropping stock market crash, colloquially known as Black Monday, where stocks crashed over 20 per cent in a matter of hours. In the meantime, gold held its nerve, saving investors from losing out.

Labour’s third successive election victory in 2005 wasn’t a guarantee of market stability either. Within just three years, the global economy was on the verge of the worst downturn since the Great Depression. It just goes to show that a strong government can’t always stop economic shocks from happening, no matter how solid a government’s majority may be.

With this in mind, Brexit is still a recurring feature in many investors’ minds. Although the likelihood of the UK leaving the EU at the end of January 2020 has increased dramatically, this initial departure deadline is just the first step of a process that will see the UK engaged in months of trade negotiations.

As the deadline runs out, another clock starts ticking, towards December 2020, and the end of the UK’s transition period.

The 2020s - choose your portfolio carefully

For many, the 2010s were even more of a rollercoaster for some investors than the 2000s. The 2020s look set to be even more of a rollercoaster. As mentioned, Brexit will linger, despite seemingly having been resolved already. Add to this the stress of an ongoing trade war between the US and China, and gold prices could easily break to new highs.

The new decade, the 2020s, will be full of investment opportunities you can’t afford to miss. Gold could be one of those opportunities. Like the Mouse, you will need to show great wit and avoid the crowded trades. That’s why the Gold Bullion Company is pleased to reveal its Year of the Mouse gold coins.

The 2020 Year of the Mouse gold 1oz coin is a worthy investment for any investor who might be hoping for some of that much-needed optimism and energy to rub off on them next year. Priced at £1,181.83 per troy ounce, each coin is made of 999.9 fine gold bullion. Get your very own coin today - the next Year of the Mouse won’t be until 2032!

Gold as the ultimate safe haven in 2020

As we enter the 2020s, there will be a need for clarity - think of gold as a form of 2020 vision. Gold has a knack for signalling major shifts in market sentiment. Remember how gold bottomed out in 1999, mere months before the Dot Com bust in March 2000.

Gold entered a new price rally in early 2016, in anticipation of the EU referendum, triggering a new bull-run phase that could continue to have legs well into the 2020s. The yellow metal has a curious habit of making investors ask the question: “What does gold know that we don’t?” - it always makes sense to be ahead of the curve, so why not consider investing in gold today?

Not only do we specialise in Lunar gold coins - the Gold Bullion company offers other tangible assets including Tax-Free Gold, free from VAT and Capital Gains Tax, as well as offering a range of gold bullion bars, both large and small.

They make ideal investments, whether you wish to put aside a fraction of your portfolio into something more diverse, or wish to make some impressive gains over the long-term with some more substantial holdings.

For more information about investing in Year of The Mouse gold with the Gold Bullion Company, contact us here.

We look forward to helping with any enquiries you may have.

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<![CDATA[How Will The US Trade Policy Affect Dollar Value]]> https://www.thegoldbullion.co.uk/blog/how-will-the-us-trade-policy-affect-dollar-value/ https://www.thegoldbullion.co.uk/blog/how-will-the-us-trade-policy-affect-dollar-value/ Tue, 17 Dec 2019 00:00:00 +0000  

  • An increasingly belligerent attitude from both the US and China over trade tariffs.
  • A huge US budget deficit.
  • A slowing global economy.
  • Destabilisation of Hong Kong.
  • Repatriation of gold reserves by numerous countries.
  • Ongoing state purchases or production of record quantities of gold.
  • The continuing advancement of cooperation between the BRICS group of developing nations of Brazil, Russia, India, China and South Africa.

 

It would be very easy to see all of the above as individual events relating to their own specific causes, but what if they are all potential components, triggered by US Trade policy, of a series of events that will lead to the destruction of US Dollar value on the world stage?

America First

The effects of President Trump’s well-rehearsed mantras of ‘America First’ and ‘Make America great again’ are probably most noticeable in the increasing trade war between the US and China. The initial tariffs imposed on Chinese imports into the US, with threats of more to come if the Chinese failed to cooperate, led to retaliation from China in the form of tariffs on US products. Some experts believe that after just two years this trade war is already having an undermining effect on the global economy in general. These two economic giants represent approximately 40% of the global economy between them and an already contracting global economy is unlikely to benefit from hostility between its largest members.

The additional factor of perceived US military power is also an issue to be considered. The US military establishment is enormously expensive, with a budget of over $700 billion recently approved by Congress. This spending has to be justified and in light of recent US disengagement from the Middle East, Russia and more recently China are identified as the major potential threats.

Whilst Russian nuclear assets are considered to have excellent capabilities, the ability of naval and army resources to operate effectively is often questioned on the basis of outdated technologies and unreliable engineering. The US Government’s insistence that Russia’s perceived goals of controlling global oil supplies and enlarging their territorial control justify the huge military budget is very much harking back to the attitudes during the Cold War and are not necessarily factually based.

China, on the other hand, has developed an impressive military force in recent years and extended its sphere of influence and territorial claims, particularly in the area of the South China Sea, as yet unchallenged directly by the US.

If the US aim truly is ‘America First’ then US thinking must be that China needs to be constrained from continuing with a rapid increase in influence, most notably in central Asia and Africa, where Chinese companies and huge investments are building massive infrastructure projects.

The growth of the Chinese economy and military stand testament to Chinese ambition that no longer appears to be constrained by Cold War era style bluster and military prowess on the part of the US. This leaves the US with the question, ‘If projected military strength cannot contain China’s global growth of influence, what can?

The US Deficit

Whitehouse.gov states that the difference between US Government spending and received revenue was a $1.09 trillion deficit in 2019 and is projected to be a £1.10 trillion deficit for the 2020 financial year. However, a US deficit, even at this eye-watering scale, is not necessarily perceived to be a problem. Governments will often run deficits as the additional money pumped into the economy will benefit the population with the ability to spend more and increase growth.

In the case of the US economy there is also an additional ‘safety net’ at play, US Treasury Bonds that provide guaranteed interest on loans to the US Government.

The US has had the world’s largest economy for almost the last 150 years and currently accounts for approximately 25% of global trade. That world dominance over a long period has led to the situation where the US Dollar is the most recognised and desirable currency on Earth and Dollar value is used as the settlement method for global trade.

Most nations that trade with the US hold ‘foreign reserves’ of Dollar value in the form of cash and Treasury Bonds or Treasuries. China is thought to hold foreign reserves of around $3.1 trillion, most of it in USD with about a third being in the form of US Treasuries. Treasuries are popular throughout the globe, primarily because the US Government has never defaulted on these loan agreements.

The popularity of US Treasuries holds an additional advantage for the US Government in that they provide a stable source of low cost financing of the US deficit.

A deficit may well not be harmful but perceived wisdom is that deficits should be paid down during times of economic growth. Perceived wisdom that the US appears to be ignoring at present.

Global Slow-Down

It is widely accepted that we are experiencing a general slowing of growth in the global economy. The US/China trade difficulties appear to be exacerbating the situation with some observers even suggesting that cyclical depression plus a trade war could trigger yet another global financial crisis.

In the event of serious decline in the global economy, nations are likely to repatriate funds in order to support their own economies and this would result in the selling off of US Treasuries and the liquidation and withdrawal of other investments from the US.

Widespread recession generally has the effect of pushing up interest rates at a global level. The combination of buying back Treasury Bonds, reduced investment into new Treasuries and the resulting need to borrow on the more expensive global markets may well seriously impact the US economy or at the very least lead to an increase in money printing or Quantitative Easing as it tries to cover the deficit.

Destabilisation of Hong Kong

The recent series of escalating protests in Hong Kong by the Umbrella Protest groups has secured a great deal of coverage throughout the world’s media outlets and has reportedly damaged the local economy and reputation of the former British colony.

As a major gateway into China for overseas investment funds, Hong Kong’s financial markets also suffered in the early days of the protests and disruption with some investors moving funds and even physical assets such as gold bullion to safer storage locations, primarily Singapore. Recent improvements in the performance of the Hong Kong markets have reduced the impact on the flow of investments into China but the situation is still volatile and will be of concern to the Chinese Government.

The acceptance of the Hong Kong Human Rights and Democracy Act by the US House of Representatives in November 2019 was heavily criticised by China as interference in internal affairs and the Chinese warned of ‘counter measures’ if the US continued to support protestors in Hong Kong. China has often expressed the view that the recent unrest in Hong Kong was instigated and is being supported on behalf of the US.

Bringing Gold Home

As the spectre of global economic slow-down becomes more visible, many countries are re-patriating some or all of their gold bullion reserves which have historically been held in the US and UK. Poland, Austria, Germany, Netherlands, Hungary, Turkey and Belgium have all taken possession of their gold assets, mainly from the US Federal Reserve Bank of New York.

It is also reported that Romania plans to repatriate 60 tonnes of gold that has spent the last 20 years on deposit in London.

State Purchases of Gold

In November 2019 The World Gold Council revealed that global central banks collectively bought 374 tonnes of gold, worth almost $16 billion, in the first half of 2019. These purchases were led by China, Russia and Poland and are seen as efforts to move foreign currency reserves away from the Dollar by using them to purchase gold.

The BRICS group of nations

The BRICS group of nations; Brazil, Russia, India, China and South Africa was originally formed in 2009 as BRIC before admitting South Africa in late 2011. The aim of the group is to encourage commercial, political and cultural cooperation between the nations.

Their most recent annual summit, the eleventh, was hosted by President Bolsonaro in Brasilia from 13th November 2019. Amongst the subjects under discussion was the group’s New Development Bank (NBD) and its role in providing funding for infrastructure and sustainable development. The development of a common cryptocurrency was also discussed, aimed at reducing the impacts of currency volatility. Such a development could also act as a common settlement medium for trade between BRICS members.

On 12th December 2019, the BRICS Information Portal carried a post with the headline, ‘American Isolationism is Drawing China and Russia Closer Together’ attributed to the South China Morning Post. China’s President Xi, commenting on the development of a major gas supply pipeline between China and Russia, reportedly said that the development of Sino-Russian ties would be a “foreign policy priority for both our nations.” The post also included the comment that “Closer cooperation between China and Russia does not mean foregoing efforts to improve relations with the US. Trump’s policy of pressuring rivals and allies alike on trade and technology is counterproductive.”

China’s Viewpoint

For many western businesses, China is a notoriously difficult place in which to succeed.  The reasons are numerous and varied but often revolve around differing cultural values and processes. These, often very nuanced, differences can be perceived as deliberate obstacles, disinterest or even protectionism both by individuals and the wider state.

Throw-backs to the former hard-line Communist state including enthusiastic copying of a good idea or design still exist whilst the previously common requirement to bribe individuals in order to receive a desired outcome is being aggressively fought by the current government.

Secretive attitudes and a belief in the possession of a strong military force are also echoes from the past that can still be seen in other former-communist states.

In 1978 China began the process of opening up and reforming its economy, posting average year on year growth figures of near 10% and becoming the world’s second largest economy, raising 850 million of its population out of poverty in the process. This impressive growth was based on resource intensive manufacturing for export combined with low labour costs but China is now trying to restructure the economy towards higher-end manufacturing and services together with increased consumption within China. These changes are designed to satisfy the aspirations of a more developed workforce and to fund improvements in the provision of services such as healthcare. Focussing on a clear and fair business environment together with the strengthening of the regulatory framework are also seen as necessary improvements.

Whilst the Chinese and Western cultures are very different, it is useful to view recent global events from China’s perspective:

During the period of China’s exceptional economic growth, the West, and the US in particular, was only too happy to buy low cost, mass produced items from China in order to satisfy demand for consumables. Because of the dominance of the USD in world trade, China amassed considerable wealth in Dollars but then faced the reality that the US controls the Dollar.

As China’s exports grew in value, US sentiment began to sour towards them, linking US job losses to mass production in China.

In 2009 China began to reach out to similar emerging economies and BRIC was established.

In 2015 China achieved IMF reserve currency status for Renminbi currency as a way to limit US influence on China. Whilst there has been some traction in increasing the use of Renminbi in international trade, progress is slow and the Dollar still dominates.

In 2019, in the face of increasingly harsh tariffs from the US, China and the other BRICS nations discussed a further potential challenger to the dominant state of the Dollar, a common crypto currency that could be used between the members in settlement of trade deals.

Combining the different threads

So how might these different threads combine?

At present China is locked in to the use of the Dollar for the purpose of global trade and therefore has been forced to accept US tariffs whilst developing alternative markets and alliances.

This situation suits the US very well as it gives the Dollar value as the leading global currency and ensures a ready inbound stream of finance into Treasuries that offsets the domestic deficit.

However, signs of a downturn in global trade are already encouraging many nations to become more isolationist, taking decisions aimed at protecting their own economies in the event of a new recession. The movement of gold reserves back to the countries of ownership could easily be the first signs of a much broader repatriation of funds, including those currently held in US Treasuries.

A serious escalation of the US/China Trade War could well disrupt global markets sufficiently to accelerate this process.

Running parallel to this issue is China’s obvious intention of weakening the dominance of the Dollar in world markets. Having had only limited success in promoting the Renminbi, China appears to be encouraging the BRICS nations to explore the option of a common crypto currency for use within the group to settle trade deals.

A recent speech by The Governor of The Bank of England, Mark Carney, to the Jackson Hole Symposium in August 2019 provides fuel for speculation that some form of technical solution for trade settlements on a global basis would be generally welcomed by sections of the global financial community. Mr Carney described the concept of a Synthetic Hegemonic Currency (SHC) which could dampen the domineering influence of the US Dollar on global trade as intriguing.

Does this indicate an opportunity for the BRICS crypto currency to gain support globally? Probably not, since the world is unlikely to consider such a potentially volatile system to service world trade. But what if that crypto currency could be backed or guaranteed in some way?

According to the World Gold Council, in 2018 China mined 400 tonnes of gold, Russia mined almost 300 tonnes, South Africa mined 129 tonnes and Brazil mined 97 tonnes. That quantity of gold, together with existing holdings and re-patriated holdings may collectively form the type of guarantee behind a monetary system that could find enough global support to dislodge the Dollar from its position as the ultimate global currency.

Events and processes may well be aligning such that if the US chooses to become more inward looking and isolationist then its role in the world, and consequently its currency, will become less relevant and less desirable.

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<![CDATA[Christmas 2019 Opening Hours & Delivery Information]]> https://www.thegoldbullion.co.uk/blog/christmas-2019-opening-hours-delivery-information/ https://www.thegoldbullion.co.uk/blog/christmas-2019-opening-hours-delivery-information/ Sun, 01 Dec 2019 00:00:00 +0000 The Gold Bullion Company office will be closed from 4:30pm on Friday 20th December 2019 to 9am on Friday 3rd January 2020. During this period our Customer Service Team will not be available to take calls or answer emails.

Our website will continue to accept orders as normal for the duration of the Festive Period.

In order to receive your goods before Christmas*, all orders and any necessary ID must be received before 12pm on Friday 20th December 2019.

All orders after 2pm Friday 20th December 2019 will be dispatched upon our return on Friday 3rd January 2020.

Please note that we advise all customers to order as early as possible to avoid any possible delivery delays given the increased demand during the festive period.

Are you still looking for the perfect Christmas gift for someone special in your life?

Get your order in early with our 2020 Gold Sovereign Pre-Order or buy the brand new 2020 1oz Gold Britannia (available now), both CGT FREE and VAT FREE products. We also have a range of gift boxes that really put the finishing touch to your bullion gift and made available for you when adding your items to the cart.

The Gold Bullion Company would like to thank all of our customers, new and old, for their support during 2019

We Wish You All a Merry Christmas and a Prosperous New Year

* Delivery is dependant on Royal Mail's ability to deliver parcels in their agreed time frame. We are not responsible for Royal Mail's service and do not guarantee delivery times during the festive period.

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<![CDATA[How Will The Snap Election Affect Gold Value]]> https://www.thegoldbullion.co.uk/blog/how-will-the-snap-election-affect-gold-value/ https://www.thegoldbullion.co.uk/blog/how-will-the-snap-election-affect-gold-value/ Thu, 28 Nov 2019 00:00:00 +0000 Election time is upon us once more, for the third time in just four years. People across the UK have taken part in a number of votes in recent years, on Scottish independence, EU membership, and three hastily called general elections. These events highlighted the great amount of political turbulence we’ve been seeing during the last four years.

Snap elections are rarely held in the autumn or winter, but Boris Johnson’s wish came true just a few weeks ago, when MPs voted in favour of the first snap election held outside spring or summertime since October 1974.

If you know anything about political and economic history, 1974 was part of an era fraught with polarised politics and a rising tide of high inflation. These factors combined to help propel gold prices higher and higher, as part of a decade-long bull market, lasting for a number of years after the October 1974 vote.

Let’s explore the possibility of the election affecting gold value.

History repeating itself

The October 1974 election is important to highlight, as it was actually the second of two elections held that same year. The first, in February 1974, was inconclusive, and saw Conservative Prime Minister Edward Heath lose power, amid strikes, the first oil shock and the economic crisis that followed.

When his successor, Harold Wilson, called the second election in late 1974, gold was worth just £68 per troy ounce. By the time another election was held, in May 1979, gold prices had soared to £118. During that time, politics became even more divisive and double-digit inflation persisted, causing the Pound to drop like a stone. The result was an election affecting gold price through resulting currency devaluation.

To put this into perspective, gold is currently worth £1,142 per troy ounce, as of late November. A similar five-year price bounce could result in gold being worth £1,987 per troy ounce by 2024. It’s important to stress that past performance isn’t always indicative of future returns, but it serves as a useful precedent, to show just how rapidly gold prices can flip to the upside, and just how high they can rise.

Stay up to date on the latest gold prices, by following our very own Live Gold Price chart. It’s updated on a regular basis each day, so you never miss a price movement.

Where are we now?

Past performance is all very well, but how is gold performing right now? Here at the Gold Bullion Company, we’ve noted that prices have taken a short breather, after an exhilarating bull run during the summer, which took them to an all-time high, above the crucial £1,200 per troy ounce level. But that’s just taking out the all-time high, in nominal terms.

Adjusted for inflation, gold is yet to break out to higher highs, as consumer prices have risen since the 2011 price peak. This current price dip could prove to be a tempting time to invest, before prices rise even further in the coming months, and there are plenty of reasons to expect higher prices resulting from the election affecting gold value.

Brexit has been delayed yet again, until late January 2020, but looms large on the horizon. If the forecasters at Electoral Calculus are correct, Boris Johnson could be on-course for a majority of seats in the House of Commons. However, this assumes the Conservative poll lead remains in double-digits.

Mr Johnson’s predecessor is remembered for having called a snap election of her own, while riding high in the polls, only to lose her majority on the day itself, resulting in much of the political turbulence we’ve been experiencing in the last few years. Gold has certainly been able to benefit greatly from this, having risen by 50 per cent since mid-2015.

Potential short-term gains

If you’re looking to invest in gold but want to know what kind of short-term gains could be potentially made in the event of an inconclusive snap election result, we only need to look at what happened in May 2010. Back then, voters returned MPs to Westminster in a hung Parliament for the first time in 36 years. David Cameron’s Conservatives were back in power, but forced to form a coalition with the Lib Dems.

Markets were already jittery, and gold prices benefited from this sentiment enormously, rising from £750 in April, when the vote was called, all the way to £854 in mid-May, once the coalition had formed, after days of wrangling and uncertainty. That was a gain of 14 per cent in just a single month as an indirect result of the election affecting gold value.

If replicated over the current election cycle, gold prices could rise as high as £1,301, meaning a break-out to a new all-time high yet again. Think of it as a nice golden surprise as we go into Christmas.

Investments to consider today

The rising political uncertainty surrounding Brexit and the snap election increases the potential for the Pound to remain weak, and gold could make respectable price gains in a very short period of time, if precedent is any guide. The 1980 gold mania saw prices quadruple in just five months, so exceptional price rallies aren’t out of the ordinary for the yellow metal.

As we explained in one of our most recent pieces, the 2020 Gold Britannia is now available. It could ensure greater clarity, as you start planning your portfolio for 2020 and beyond. Struck in 24-carat gold, and weighing one troy ounce, it has a face value of just £100, but its true value is closer to £1,184 at current prices in late November.

The difference between face value and true value just shows how the Gold Britannia has been able to not only maintain value over the decades, but gain significant value, as inflation has eroded the value of the Pound in our pockets. This is precisely why investors regularly cite gold as the perfect inflation hedge. It’s hard to find an asset that can preserve wealth so consistently.

If you’re curious about buying gold bullion or coins, but have any queries holding you back, don’t hesitate to contact us here at the Gold Bullion Company. We’re dedicated gold specialists and look forward to handling any questions you might have regarding gold as an investment.

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<![CDATA[Gold Investments in 2020 Provide Hope in Turbulent Times]]> https://www.thegoldbullion.co.uk/blog/gold-investments-in-2020-provide-hope-in-turbulent-times/ https://www.thegoldbullion.co.uk/blog/gold-investments-in-2020-provide-hope-in-turbulent-times/ Thu, 31 Oct 2019 00:00:00 +0000 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 gold investment 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 gold investment 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 gold investment 2020 enquiry.

Telephone: 01902 623 259

Email: sales@thegoldbullion.co.uk

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<![CDATA[Brexit October Hold Up]]> https://www.thegoldbullion.co.uk/blog/brexit-october-hold-up/ https://www.thegoldbullion.co.uk/blog/brexit-october-hold-up/ Mon, 21 Oct 2019 23:00:00 +0000 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 in supporting a Brexit October deadline 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 Brexit October 31st will not be the day of departure. 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 target as Brexit October 31st, 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.

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<![CDATA[Historical Averages Show Silver to Take Over Gold]]> https://www.thegoldbullion.co.uk/blog/historical-averages-show-silver-to-take-over-gold/ https://www.thegoldbullion.co.uk/blog/historical-averages-show-silver-to-take-over-gold/ Thu, 26 Sep 2019 23:00:00 +0000 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 take over 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 this long-term historical average and allowed silver to take over gold as the dominant force in the relationship.  

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 and explains why some investors prefer silver over gold in their portfolios. 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.

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<![CDATA[Gold Record High In Sight as Value Continues to Rise]]> https://www.thegoldbullion.co.uk/blog/gold-record-high-in-sight-as-value-continues-to-rise/ https://www.thegoldbullion.co.uk/blog/gold-record-high-in-sight-as-value-continues-to-rise/ Thu, 22 Aug 2019 23:00:00 +0000 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 resulting in the gold record high prices..

£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 – gold record high 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 historically, when prices have broken out to gold record high levels they have 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.

 

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<![CDATA[Record Gold Price in GBP Represents a Great Time to Invest]]> https://www.thegoldbullion.co.uk/blog/record-gold-price-gbp-represents-a-great-time-to-invest/ https://www.thegoldbullion.co.uk/blog/record-gold-price-gbp-represents-a-great-time-to-invest/ Mon, 05 Aug 2019 23:00:00 +0000 Monday 5th August saw a UK record gold price. 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 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.

 

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<![CDATA[Could Fresh UK Fiscal Stimulus Lead to Gold Price Increases]]> https://www.thegoldbullion.co.uk/blog/could-fresh-uk-fiscal-stimulus-lead-to-gold-price-increases/ https://www.thegoldbullion.co.uk/blog/could-fresh-uk-fiscal-stimulus-lead-to-gold-price-increases/ Mon, 22 Jul 2019 23:00:00 +0000 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 trigger a gold price increase, making 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 gold price increase. 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 gold value increase 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 the gold price increase, 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.

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<![CDATA[UK Fails to Seize Opportunity as Central Banks Increase Gold Investments]]> https://www.thegoldbullion.co.uk/blog/uk-fails-to-seize-opportunity-as-central-banks-increase-gold-investments/ https://www.thegoldbullion.co.uk/blog/uk-fails-to-seize-opportunity-as-central-banks-increase-gold-investments/ Tue, 25 Jun 2019 23:00:00 +0000 It’s no secret that Britain and the US have a convoluted relationship with gold. In the 1970s, the US abandoned the Bretton Woods system in order to float the Dollar - double-digit inflation ensued. The UK equally made a blunder in 1999, selling off a significant portion of its gold reserves (remember “Brown’s Bottom”?).

You might think that the end is nigh for gold, given the Anglo-American reluctance to buy gold investments. This is too simplistic a reading to make. As the World Gold Council can attest, China and Russia’s central banks have gone to great lengths to secure a slice of gold while they still can.

To finance this, both countries have reduced exposure to the Dollar, by selling up their holdings in US treasuries. In one fell swoop, they have diversified and managed to strengthen their position, opting for tangible assets over assets from a sovereign nation reliant on fiat currency.

Yet change may be afoot in the US, at long last. Judy Shelton, a long-time advocate for a return to the gold standard, is being eyed up by the Trump administration for a possible role in the Federal Reserve.

A paradigm shift?

As noted, Russia and China’s central banks have been greatly increasing their investments in gold. China now boasts a haul of as much as 1,885 tonnes of gold, while Russia can claim to hold as much as 2,168 tonnes. To put this into perspective, Russia has managed to double its gold holdings in just five years flat.

In marked contrast, Britain’s gold reserves have remained static, at just over 310 tonnes, or 8 per cent of total foreign exchange reserves. The 1999 sell-off is largely responsible for such a small figure here. Britain appears fairly ambivalent to the need to acquire gold, but China and Russia appear to be leading this new trend of increasing demand for gold.

Do the Chinese and the Russians know something we don’t? Perhaps they see this current period as a golden opportunity to shift the axis of the global financial system. The era of US/UK financial hegemony might be almost over.

The US and gold - love it or hate it

The American relationship with gold is seemingly a love/hate one. Under Bretton Woods, the Dollar was fixed to gold, at a rate of $35 per troy ounce. Since the 1970s, the US has allowed the Dollar to become fiat currency, floating freely, while the Federal Reserve, just like the Bank of England, has printed fresh currency.

This money printing accelerated in the aftermath of the global financial crisis in 2008. This expansion in the supply of currency has been greatly supportive of gold. Now, the White House seems like it is considering a long-time gold standard advocate, Judy Shelton, to be considered for a job at the Federal Reserve.

Ms Shelton has made a name for herself, likening the Federal Reserve to Gosplan, a USSR government division that managed the bloc’s economic development during the Cold War. Ms Shelton being considered for such a job is an indication that there could be something of a change in economic thinking taking place, towards a more gold-friendly orthodoxy.

Britain facing summer of stress

A return to a more gold-oriented financial system would have profound implications for Britain, with its small gold reserves and its host of political and economic problems. As it was during the financial crisis, gold has shown great potential for strong performance during Britain’s long-running Brexit saga.

Brexit is likely to remain unsolved until late 2019 at the earliest, putting pressure on Sterling and other British-based assets. Gold investments could benefit greatly from this uncertainty, serving as a tangible asset that has retained much value over the years.

The gold price remains elevated in recent times, close to its 2011 peak in Pound Sterling terms, at £1,100 per troy ounce as of late June 2019. Ironically, when Britain sold its gold in 1999, the market was just bottoming out. Since then, gold has appreciated multiple times, losing the country a significant sum of money in potential reserves.

Even now, as the price of gold remains close to an all-time high, Britain’s gold reserves remain static, suggesting they have much to learn from their fellow central banks in Russia and China.

Safe haven for the future

A new gold standard might be a long way off if it is even viable. Even so, the significant sums that central banks around the world have acquired in recent years reflect the constant truth about gold: that it remains a tangible means with which to store wealth, amid turbulence and crisis.

With the potential for a deepening trade war that could have great repercussions here in Britain, coupled with the continuing Brexit dilemma, which doesn’t seem like it’s near its completion anytime soon, gold prices have a great deal of support at present.

To demonstrate the potential for gold to really shine this summer, one need only look at the performance of gold investments priced in Pound Sterling back in 2015-16. Over a year-long period, covering the run-up to the EU referendum and its volatile aftermath, gold prices jumped 50 per cent.

Like a coiled spring, gold has the potential for great returns to the upside at short notice. The next big leap in prices could potentially see gold hit all-time highs in Pound Sterling terms if it is anywhere near as large as the previous rally in 2016.

Past returns are never a perfect predictor of future performance, but if the simple act of voting to leave the EU contributed to such a return, the potential for a rally in the event of a chaotic resolution to Brexit could make the summer of 2019 one of the most consequential summers to buy gold investments in the history of the British gold market.

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<![CDATA[Is Gold Backed Cryptocurrency The Way Forward]]> https://www.thegoldbullion.co.uk/blog/is-gold-backed-cryptocurrency-the-way-forward/ https://www.thegoldbullion.co.uk/blog/is-gold-backed-cryptocurrency-the-way-forward/ Wed, 22 May 2019 23:00:00 +0000 Anyone who has invested in gold since the 2008 financial crash will know that gold prices have hit something of a price ceiling - since 2011, the yellow metal has been unable to break above $2,000. As of May 2019, the gold price has drifted closer to $1,300.

It would be easy for anyone in the business of buying or selling gold to say that the bull market is over - some have been as blunt as to say the great gold bull is dead. They might think that, but behaviour by central banks from some of the world’s largest economies suggests otherwise.

Is gold actually just a sleeping dragon? Is a gold backed cryptocurrency on the cards?

Central banks can’t get enough

Despite the apparent pessimism within gold markets, central banks have been buying up more gold in the last year than they have done for a considerable number of years. In the first quarter of 2019 alone, central banks of the world bought a combined total of 145.5 tonnes of gold, a level of accumulation the World Gold Council hasn’t seen since 2013.

China and Russia have been keen to get in on the action - China’s central bank is estimated to have added as many as 651.5 tonnes to its total gold reserves, which are believed to be as much as 1,852 tonnes in total. Russia is reported to hold as much as 2,113 tonnes, or approaching $500 billion worth of gold reserves through the Central Bank of Russia (CBR).

The US is one of the world’s top holders of gold reserves - 75 per cent of its foreign reserves are held in the form of gold. That’s quite an investment, for a precious metal supposedly in a bear market.

Part of a larger trend

China and Russia have opted to build closer economic ties in recent years - this reflects a shift away from US economic interests, towards a mutual shared interest between the two countries.

China and Russia’s decision to accumulate more gold through their central banks reflects a systemic shift towards tangible assets with a more fixed value. Russia has faced a raft of sanctions from the United States since 2014, when it was accused of annexing Crimea. China has also had a tricky relationship with the US - President Donald Trump has approved of escalating tariffs against China, via imports worth $200 billion.

Markets have understandably corrected on news of a possible trade war, but gold remains available as a safe haven amidst the market turbulence.

Crypto - gold 2.0?

The creation of cryptocurrencies has provided another means for investors to diversify away from traditional investments such as stocks and bonds or treasuries. Cryptocurrencies offer a whole new means of transferring sums of money through the blockchain - the only constraint on cryptocurrencies is your computing power. No central bank can claim control of your cryptocurrency and print as much as it likes.

Whereas some turn to gold as a hedge against inflation and financial crises, cryptocurrencies offer a decentralised means of exchange through the blockchain, independent of central bank interference. Governments can try to regulate them, but the blockchain has great potential to shake up the established financial order.

What if you could take the safe haven status of gold and merge it with the independence of the blockchain? Enter gold backed cryptocurrency and gold coin crypto.

A number of gold backed cryptocurrencies already exist but aren’t established by sovereign states. Coins are typically issued, representing a particular amount of gold at a certain value. The gold that backs the coins is kept by a third-party and can be traded with others who possess the same gold cryptocurrency.

Could gold-crypto rival the Dollar?

Russia and China have demonstrably built up their gold reserves, but they have made a habit of seeking greater regulation of cryptocurrencies in the past, or simply outlawed the mining of them, as China did. Both countries have more reason now than ever before to go their own way, and rival the Dollar with a gold-backed cryptocurrency of their own.

The Dollar was originally backed by gold, as part of the Bretton Woods system, a post-war currency mechanism that fixed the value of the Dollar to gold - its value depended on gold reserves. President Nixon’s decision to upend this, by ending the Bretton Woods system in 1971, opened up the Dollar to the prospect of devaluation and higher inflation.

Rather than backing Dollars with something tangible, the Dollar is now fiat money, and the Federal Reserve has demonstrated its ability to create money out of thin air, through zero-percent interest rates (ZIRP) and quantitative easing (QE) following the financial crisis of 2008.

A gold backed cryptocurrency would be independent of Federal Reserve interference to an extent - to be viable at scale, it would require the backing of at least one sovereign nation or more. As transactions shift towards this new cryptocurrency, the Dollar’s status as a reserve currency would be limited - it would remain a fixture of the world economy but look increasingly side-lined.

Stumbling blocks for the blockchain

Independence from US influence could only be to an extent - this is because the US remains one of the biggest holders of gold deposits on the planet. In 2016, the US was estimated to hold as many as 8,133 tonnes of gold, worth over $300 billion - in pure quantity terms, the US holds more than twice the amount of gold that Russia and China hold combined. Russia and China could try to sever dependence on the Dollar, but the US could simply flood the markets with gold, greatly affecting market value.

The cryptocurrency aspect also requires some clarification - how would countries be able to uphold the usage of a blockchain to handle transactions? Would one country have more input than another? These factors would need to be addressed, to make a gold cryptocurrency sustainable, in order to rival the US Dollar.

There is great potential for such a currency, but there are equally many questions to be answered before anyone can say if a gold backed cryptocurrency could really rival the Dollar on the global stage.

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<![CDATA[2019 Gold Sovereigns to Feature The Queen & St George]]> https://www.thegoldbullion.co.uk/blog/2019-gold-sovereigns-to-feature-the-queen-and-st-george/ https://www.thegoldbullion.co.uk/blog/2019-gold-sovereigns-to-feature-the-queen-and-st-george/ Tue, 16 Apr 2019 23:00:00 +0000

The 2019 Gold Sovereigns are timeless in their depiction of two things that are intrinsic to the British way of life. St George is depicted riding his horse, slaying the Dragon on one side, with a depiction of Her Majesty Queen Elizabeth II on the other. Both serve as potent symbols of longevity and tradition.

How fitting that the Queen should celebrate her 92nd birthday this year, just two days before St George’s Day.

In honour of Her Majesty’s celebrations, the legend of St George and of course the release of the 2019 Sovereigns, we’re taking a look back at the origins of these beautiful coins.

The Royal Connection

The very name of a Gold Sovereign denotes a firm connection with the crown, despite the wording seeming archaic to modern Britons. Gold is a precious metal that has been sought-after for generations, for its seemingly ageless beauty.

The use of the word Sovereign, a word derived from the Latin word for “above”, suggested taking a likeness of the ruling monarch and engraving it in a way that would make it last for generations.

English Sovereigns

The original Gold Sovereign was first minted in 1489, during the early reign of Tudor King Henry VII. Years of civil war had come to an end, and the Houses of York and Lancaster melded into one dynasty that would rule for over a century. The English Gold Sovereign depicted the likeness of five Tudor monarchs - three kings and two queens.

On the obverse side, the Tudor rose, combining the White rose of York and the Red rose of Lancaster were engraved upon it. It was minted in 23-carat gold, almost one of the purest forms of gold you could hope to find.

Its purpose was largely ceremonial, and it fell out of production in 1603, following the death of Elizabeth I. Despite its absence for many centuries, the English Sovereign would have a lasting legacy that future monarchs would be keen to emulate when the time came.

Gold Sovereigns

But two centuries passed before the Gold Sovereign returned, during the latter years of George III’s reign. The Gold Sovereign of George III was introduced in 1817, as a means of restoring British prestige following the Napoleonic War. Engraver Benedetto Pistrucci was tasked with designing what Gold Sovereign collectors will recognise as the distinctive St George and the Dragon image. Pistrucci is immortalised with the inclusion of his initials, BP.

The British Gold Sovereign was given a declared value of one pound sterling. Even the Gold Sovereign 2019 retains an official value of one pound Sterling, despite its true worth being many times this, owing to the increase in gold’s value in the ensuing centuries.

Victorian Gold Sovereigns

The British Gold Sovereign was struck in 22-carat, a slightly reduced purity, but still impressively high. It became truly distinctive during the lengthy reign of Queen Victoria, who ruled between 1837 and 1901.

Collectors will be familiar with the Gold Sovereign’s three iterations during this period. Saint George was initially absent from the coin, until 1871, when a new version of the Young Head Gold Sovereign was produced, with the inclusion of Saint George being approved by Queen Victoria herself.

Victoria’s lengthy reign resulted in a special commemorative coin, the Jubilee Head Gold Sovereign coin, produced between 1887 and 1892. By now, Victoria was Queen and Empress to millions. This coin is a rare gem for collectors, fascinated by Britain’s imperial past.

Victoria’s later years were celebrated by the Victoria Veiled Head Coin, reflecting her status as a widow Queen, approaching the final years of her reign. By the time of her death in 1901, Victoria had ruled for an unprecedented 64 years. Gold Sovereigns had now become very much a symbol of Victorian Britain.

War and turmoil

The death of Victoria marked a gradual transition towards a gloomier era for Britain, as it soon found itself at war with Germany in 1914. By now, King George V was on the throne, and the Gold Sovereign of George V soon vanished out of circulation, as economic stress grew. For many years, there was a gap, with the Gold Sovereign seeming to be out of fashion, as the population was convinced to transition towards banknotes instead.

The Gold Sovereign remained in production, but access was more limited. Despite this, they were not only produced in Britain, but all over the Commonwealth too, in places such as Canada, India, Australia and South Africa.

By the end of World War Two in 1945, the Gold Sovereign appeared to have become a prized possession from an old era that had long since passed.

Gold Sovereign return

The sudden and unexpected passing of King George VI in 1952 resulted in his young daughter succeeding him, to be crowned as Elizabeth II. It’s fitting that the final English Gold Sovereign was minted in the reign of Elizabeth I, but the Gold Sovereign was revived again in the early reign of Elizabeth II, some three centuries later.

In 1957, the Young Head Gold Sovereign of Elizabeth II entered production, displaying Her Majesty Queen Elizabeth II in her earlier life, as a Queen presiding over an empire that was beginning to fade away, with Britain questioning its role in global affairs. This coin was particularly special, as it marked the final set of Gold Sovereigns minted before decimalisation.

Elizabeth II’s reign has seen numerous commemorative versions of the Gold Sovereign, including a special 200-year Anniversary Gold Sovereign, minted in 2017, to mark two centuries of coins, symbolising St George’s victory over the Dragon, along with a high-quality likeness of the ruling monarch. Her Majesty has also lived to see a Golden and Diamond Jubilee.

By some fateful coincidence, Her Majesty’s actual birthday falls just two days before St George’s Day. The Queen is to celebrate her 92nd birthday, and so the 2019 Gold Sovereign is the perfect way of reflecting the centuries-old union between the crown and English folklore. Why not get a piece of history yourself by buying a 2019 Gold Sovereign today?

 

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<![CDATA[Easter Gold as a Gift]]> https://www.thegoldbullion.co.uk/blog/easter-gold-as-a-gift/ https://www.thegoldbullion.co.uk/blog/easter-gold-as-a-gift/ Tue, 19 Mar 2019 00:00:00 +0000 Romanesque Cross Bars

What better way to commemorate Easter than to have a delicate illustration of the Romanesque Cross in gold? It is a superb reminder of the lasting power of the symbol, and the Easter gold gift that never ages.

Whether you’re an avid Christian or a casual Sunday church attender, there’s no doubt this is a potent image of hope, faith and rebirth, ideal for a loved one as an Easter gift.

Each bar consists of high-quality gold, manufactured in Switzerland, to the highest standards, embossed with a Roman-style cross. It also comes in secure, discreet packaging, along with a Certificate of Authenticity, that you can keep for proof of value.

Gold Sovereign Coins

Gold sovereign coins could be the ideal Easter gold gift, for their sheer historical significance. Struck for just over two centuries, they are well-known collectibles and hold great value.

Many of these gold coins are embossed with the classic image of St George vanquishing the dragon, one of the greatest legends from English history, with a likeness of Queen Elizabeth II, presented by a number of renowned engravers.

Rosa Gold Bars

Our range also includes the Rosa bar, a 24-carat bar that comes in a variety of weights, which could be the perfect Easter gold gift for a loved one this year.

It bears the stamp of an elegantly-crafted rose, reflecting beauty and nature in harmony. As a symbol of affection, it could be a great alternative to a bunch of flowers or other gift items that don’t last nearly as long as gold does. 

One Gram Gold Bars

Looking for that perfect 24-carat gift? Why not consider one gram gold bars? These items are ideal for those with a limited budget, who are still keen to deliver a special and valuable Easter gold gift this year. They are available from us for under £50, (according to prices at time of writing in late-March 2019).

Despite their size, each bar retains exceptionally high quality.

Scottsdale 1 Ounce Silver Bars

Silver is every bit as attractive as gold, but carries a fraction of the price, owing to its greater abundance in nature.

We offer a range of silver bars, such as the Scottsdale one ounce bars. These are available for as little as £23.74 (as of writing in late March 2019) and are produced to an exceptional standard.

They will certainly make a less conventional Easter gift for loved ones this Easter and will retain a unique shine, carrying great value among people interested in precious metals – and those who simply appreciate a special gift such as this from a loved one.

As well as being a truly special gift for loved ones this Easter, gold can prove to be a useful store of value, as times become increasingly uncertain. Investing in gold can help preserve value, and reflects the metal’s lasting allure over the centuries.

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<![CDATA[The Brexit Effect on Gold Price]]> https://www.thegoldbullion.co.uk/blog/the-brexit-effect-on-gold-price/ https://www.thegoldbullion.co.uk/blog/the-brexit-effect-on-gold-price/ Tue, 12 Mar 2019 00:00:00 +0000 As the US-China trade war rumbles on and Chinese economic growth continues to slow, Europe has its own matters to attend to, in the form of Brexit. The UK is scheduled to leave the EU on 29th March, but recent developments suggest that its departure will be far from smooth, if it even happens at all.

Political deadlock

Gold prices have kept up with the ongoing political deadlock, rising to around £988 at the time of writing (March 12th 2019), as the deadline looms nearer and the outcome becomes less clear. EU negotiators in Brussels have now warned that the UK must present new proposals regarding the so-called Irish backstop, a major sticking point for Mrs May and her critics from within her own party and the DUP.

The deadlock became clear, following the government’s defeat on a meaningful vote on Mrs May’s original Brexit deal in January 2019. It resulted in Mrs May losing the vote by 230 votes, delivering her government the worst parliamentary defeat in British political history.

Now she looks set to lose the vote on her revised deal, again with the DUP and a key group of Brexiteer Tories within her own party set to oppose the revisions, throwing the future of Britain’s relationship with the EU up in the air once again.

Gold’s time to shine?

The Brexit negotiations were always time-sensitive, but the closeness of the 29th March deadline increases the pressure on Mrs May’s government and raises the risk of failure, should the government prove unable to break the deadlock and get a deal through Parliament. The Brexit effect on gold prices may see them break out of their two-year price range and potentially rise higher, if volatility returns to the markets.

The OECD made a warning to the UK over a possible no-deal Brexit scenario, in which the UK might leave the EU without any plans in place with regards to trade. In a new report, the organisation raised concerns that a no-deal Brexit could result in a recession, which has the potential to affect not just the UK but its trading partners as well.

Like any market, we cannot predict exactly how gold will respond. But we can say that gold prices have typically risen rapidly during instances of recession. Between 2007 and 2011, the precious metal quadrupled in value, as the UK weathered a credit crunch, a global financial crisis and a crisis in the neighbouring Eurozone. Between 2015 and 2016, it rose 50 per cent simply due to the global slowdown and the outcome of the EU referendum. This demonstrates gold’s ability to not only maintain its value but appreciate dramatically in times of crisis or following geopolitical shocks.

Increasing risks in the months ahead

The Brexit deadlock could be resolved in a number of ways, and each option carries its own risks. At the time of writing Mrs May is set to present an updated version of her Brexit proposals to MPs on 12th March, but headlines suggest that MPs may reject the proposal for different reasons.

If her own proposal is defeated, Mrs May’s government will suffer a great loss of control over the Brexit process, increasing risk in the markets. We expect to see a response to the Brexit effect on gold price following these developments.

A no-deal Brexit may result in prolonged economic weakness. In the event that Mrs May’s deal is rejected, MPs shall return to Parliament for a vote on 13th March, where they shall either consent to or reject the no-deal Brexit option. MPs may decide to go for the no-deal option, but this would serve as something of a shock, as commentators generally agree that a majority of MPs are not in favour of the no-deal option.

Extending Article 50

In the more likely event that MPs reject the no-deal Brexit option, they will return for a final vote on 14th March. This third and final vote will revolve around voting on whether to extend Article 50 for a limited time, offering Mrs May some breathing space. It remains unclear how long the extension could be, and risk may grow if the extension proves insufficient for MPs to overcome the deadlock.

A no-deal Brexit could still occur despite the Article 50 extension, as it serves as the default position for the UK, unless a deal can be provided before the time runs out. Mrs May has a slim chance of being able to present a deal palatable to MPs if enough of them can forge a consensus during an extension period.

However, unless a sizable number MPs come forward with this new proposal, it remains unlikely. Other outcomes such as a second EU referendum are also possible under an extension period scenario, but this would require a clear majority in Parliament to make this a reality, and it could prove difficult to decide the terms of the vote.

A safe haven in turbulent times

As underlined, each conceivable outcome lacks the clarity so desired by the markets and investors. Each avenue is fraught with negative consequences for the economy, so volatility may increase no matter what happens in Westminster.

In turbulent times, investors have historically turned to gold and invested in the precious metal as an important area of a diverse portfolio. With no sign of a clear resolution on the horizon, three is potential for the Brexit effect on gold price to allow the yellow metal to shine once again.

If you’re thinking about diversifying your portfolio with gold, consider a selection of gold coins or bullion bars to build up your collection in the coming days and weeks. At The Gold Bullion Company, we have a number of special items available for collectors and investors.

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<![CDATA[Who Decides The Price of Gold]]> https://www.thegoldbullion.co.uk/blog/who-decides-the-price-of-gold/ https://www.thegoldbullion.co.uk/blog/who-decides-the-price-of-gold/ Thu, 28 Feb 2019 00:00:00 +0000 Since mankind first discovered gold, it has been viewed as a precious asset, used to make highly coveted objects of art and jewellery and traded between investors. We have used it as currency in the form of coins and formed it into bars to make is more storable. But have you ever wondered who decides the price of gold?

Here we take a closer look at how the price of gold per gram is determined and who decides the price of gold in the UK today.

Gold as an investment

Investors who have spread their cash over various commodities, stocks, funds and shares often also buy gold in order to diversify their portfolios. This is because they see it as a hedge against inflation or currency value fluctuations. After all, gold is known to stand up against these variables and is traditionally thought to retain value through economic and political turmoil, offering a shelter for investors from what can sometimes be a volatile investment market.

So who decides the price of gold?

The very first gold mined in Brazil in the gold rush of the 1600s came to London and the city has been home to the only bullion market whose accreditation is globally accepted ever since. For the question of who decides gold price, London is the centre of the universe. The bullion market whose accreditation is observed all over the world is called the London Bullion Market Association (LBMA).

The gold price per gram is now set by the LBMA’s ICE Benchmark Administration (IBA) using an auction system that is operated electronically. This has been the case since 2015, before which a very dated telephone system had been used for more than a century.

In recent years, every day at 10:30am and at 3:00pm UK time, the LBMA publishes the gold price. The actual price of gold per gram changes throughout the day in response to trading that takes place via an anonymous auction every 45 seconds. Gold buying and selling activity carried out by investors, central banks and consumers all over the world impacts the price of gold per gram.

What pricing models are used to determine the price of gold in the UK today?

The gold spot price and the gold futures prices are used to help the LBMA value gold each day. Both these pricing models are taken into account. Let’s look at these a bit more closely.

Gold futures prices

The gold futures prices are those quoted in contracts agreeing a deal involving the delivery of a specific amount of gold on a future date. The prices quoted on these gold futures contracts are the basis of the LBMA Gold Price.

How are gold futures prices actually determined?

Several factors affect the gold futures prices quoted in contracts. These include the levels of supply and demand for gold, the rate of return for the recipient of the gold, the gold spot price and the likely cost of storing and transporting the gold.

The gold spot price

The gold spot price is the gold price per gram paid currently. It is worked out as the average gold price quoted at any current time by traders using the gold on the wholesale market. The prices are quoted for gold located in London. Gold settled in other locations, whether it be Australia, Dubai or New York, is then quoted in terms of a premium or a discount to the UK spot rate.

How do general market conditions affect the price of gold per gram?

Economic uncertainty or even recession can have a major impact on the gold price. This is due to the fact that gold is seen as a ‘safe haven’, which means that the world’s central banks will increase their exposure to gold when uncertainty or economic turmoil looms.

What effect do currency value fluctuations have on the price of gold per gram?

Monetary policies, such as quantitative easing, or inflation, for example, can lead to currencies depreciating and investors will often respond by increasing their gold exposure. Due to the finite nature of gold, it often retains its value, whereas currencies are easily affected by wider economic factors.

The price of gold increases when a greater number of people are investing in it. As a result, when currency values fall, the price of gold per gram often increases.

What effect does supply and demand have on the gold price in the UK today?

The rules of supply and demand are simple and well-known. If there is a shortage of a particular commodity, but demand continues, the price of that commodity will often increase. This is true of everything from gold, to food and property.  

If gold supplies reduce and demand increases, the gold price per gram will usually rise. During times when the demand for gold falls off, but supplies are plentiful, the price will fall. You must remember, though, that gold supplies are finite. No more can be produced, just mined.

So should I invest in gold?

Gold has long been seen as a relatively low-risk asset class that can hold its own through difficult economic and political times. Investing in gold can be a useful way to spread the risk in your investment portfolio and you can start buying gold coins and bars with as little as £50.

Perhaps the most durable reason why gold has remained such a popular asset class throughout the ages is that it is tangible. You can hold it in your hands, put it physically in a safe and know that it isn’t going anywhere unless you want to sell. It’s also stunningly beautiful and has an enduring allure that has attracted people to it for thousands of years.
You can keep up to date with the latest gold prices here.

 

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<![CDATA[Global Economic Uncertainty Has Led to Increased Gold Investing]]> https://www.thegoldbullion.co.uk/blog/global-economic-uncertainty-has-lead-to-increased-gold-investing/ https://www.thegoldbullion.co.uk/blog/global-economic-uncertainty-has-lead-to-increased-gold-investing/ Tue, 19 Feb 2019 00:00:00 +0000 Demand from global central banks for gold as a diversifier led to a 4 per cent increase in global gold demand in 2018. This is according to the latest Gold Demand Trends report published by the World Gold Council.

The increase was driven by the 651.5 tonnes of gold added to central bank reserves over the period, which was a staggering 74 per cent increase on the amount they purchased in 2017.

The demand for gold as an investment often increases around times of global economic uncertainty and the number of investors wanting to buy gold coins and gold bars from retailers also increased over the year. In fact, demand for gold bars and coins from retailers was up 4 per cent in 2018 to a total of 1,090.2 tonnes.

Industry insights

The World Gold Council’s Head of Market Intelligence, Alistair Hewitt, said the growth in gold demand was symptomatic of the geo-political landscape. He stated: “Gold demand rose in 2018 and, although the US dollar gold price was down 1 per cent over the year, it outperformed many other financial assets.”

He also commented that worries about global economic uncertainty, ongoing geo-political tensions and financial market volatility have contributed to this trend from central banks around the world.

As well as growth in demand from those looking to buy gold bars and gold coins as a straight investment, the demand for gold jewellery continued steadily, falling by just 1 tonne from 2017. However, there was growth in gold jewellery demand in China, Russia and the US, where it grew by 3 per cent, 9 per cent and 4 per cent respectively.

How did this affect the value of gold?

Although there was an overall 67 per cent downturn in the amount of gold purchased by exchange traded funds (ETFs) in Europe; in the final quarter of the year, everything changed.

As signs of an end to economic growth and a return towards global economic uncertainty started to show through, alongside increasing volatility within the stock market, inflows increased significantly to 112.4 tonnes, compared with just 32.5 tonnes during the final quarter the year before.

Anyone considering whether to buy gold bars or coins as an investment would do well to keep a close eye on the gold price charts and future developments at this time. Mr Hewitt of the World Gold Council added: “I don’t see any of the risks that investors and central banks are worried about fading anytime soon, and I expect gold to remain an attractive hedge in 2019.”

Interesting words indeed from one of the world’s leading gold authorities. Investors, collectors and anyone interested in the precious metal would be wise to pay attention to gold this year – even if it’s just to see how this unique asset performs in 2019 amidst a great deal of geo-political change and economic uncertainty.

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<![CDATA[Gold Price Forecast 2019]]> https://www.thegoldbullion.co.uk/blog/gold-price-forecast-2019/ https://www.thegoldbullion.co.uk/blog/gold-price-forecast-2019/ Tue, 05 Feb 2019 00:00:00 +0000 This year could well bring with it several things that impact the value of gold. These events range from a highly concerning US-China trade war that could have wider reaching consequences than people predicted, through to Brexit and poorly performing world stock markets.

It’s not always the case that disruptive events such as these will automatically cause a rise in the gold price, but they could…

On balance, investing in gold has always been a respected move in times of turmoil. And diversifying your portfolio with what many consider to be a safe-haven asset could be a worthwhile investment in 2019.

First, let’s take a look at some of the major considerations starting with what some of the big investment banks are saying in respect of the gold price forecast 2019. 

A word from the banks

Many large investment banks and investors foresee gold performing well in their gold forecast 2019.

According to Bank of America Merrill Lynch, the value of gold is set to surge over the next year due to concerns over the widening US budget deficit and a tariff-driven trade war that could damage the country’s economy.

Goldman Sachs is also making similar noises, with a gold price prediction 2019 including attractive prices if US economic growth slows down.

And at J.P. Morgan, “gold will likely reprice lower through the middle of next year, at which point the Fed’s policy will move into restrictive territory,” according to Natasha Kaneva, head of metals research & strategy.

She added: “We still keep a bullish bias in place for the second half of 2019, as we believe the development of an inverted yield curve in the US will likely attract increased interest in gold among investors.”

What does 2019 look like?

Taking the important macro factors into consideration for gold price forecast 2019 – as all good forecasts aim to do – gold is likely to shine if the US keeps moving in the direction it has been over the last few months.

Poorly performing equity markets and a weak property market have been concerning for the US as has Trump’s stance against China in what many believe is an alarming build up to a potentially disastrous trade war.

If more cracks in the nation’s economy start to emerge, this could impact the value of the dollar, and by association, could increase the value of gold, as past events have taught us.

We’re not saying that things are the worst they’ve ever been, but when considering all the factors at play as we start 2019, there are a number of things that could go wrong (or right, depending on where your significant investments sit).

In Europe, things are looking just as concerning, albeit more confusing than anything happening in the US.

The doubt and anxiety caused by Brexit aren’t doing anyone any good, on either side of the fence, and a bad agreement between the parties involved could potentially lead to big consequences for major industries that rely on trade and migration.

We don’t need to remind you, but the knock-on effect of any country’s economy will always, in some way, impact other nations around the world, as we become increasingly interconnected and reliant on each other through global business and economics.

And what’s happening in China, the nation that has been the largest single contributor to global economic growth over the past several years?

Well, things are slowing down. And while we don’t know the exact impact of this yet, it’s likely that we’ll start seeing a significant amount of change and potentially increased interest in assets like gold that many believe offer unbeatable stability during times of uncertainty or transition.

Diversifying your portfolio with gold

One of the biggest benefits of investing in gold is its ability to add asset diversity to your portfolio. Adding a little gold in combination with other assets such as stocks and bonds makes people feel a lot more comfortable in general.

If the stock market drops, at the very least you won’t be completely exposed, and may even make a small profit if the gold price goes up. Essentially, experts believe it is a good way to add some protection to your assets and benefit from diverse portfolio percentages that are not too reliant on any one market.

Diverse portfolio advantages, according to gold investment advice, also include variable gold investment returns if you invest your money at the right time. For instance, during times of uncertainty and market stress, many often look for gold investment advice with the intention of assigning a portion of their capital to this precious metal.

Investors may put their capital into other assets, such as government bonds or real estate to generate a diverse portfolio return, but gold, whether in the form of  gold bullion or gold coins, is a popular choice when faced with uncertain economic outlooks.

Is it time to buy gold?

When searching for gold investment advice, there are many people out there who will tell you that having some portion of your wealth invested in gold is a wise thing. So from this standpoint, yes, it could potentially be a great time for you to buy gold.

As for investors who are seeking a substantial return on their investment, there could well be a significant rise in the gold price this year – but the gold price forecast 2019 tells us that this largely depends on how things play out in terms of large uncontrollable geopolitical factors and how they impact the global economy.

It’s certainly a time to watch this particular space, keep an eye on the news about the gold price and consider whether now is the right time to put your money into gold.

To find out more about investing in gold in 2019, get in touch with the Gold Bullion Company for gold investment tips. Whether you’re looking for gold investment bullion or coins, we’ve got a wide range of products that could help you enter the world of gold investments this year.

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<![CDATA[Year of The Pig Gold for 2019]]> https://www.thegoldbullion.co.uk/blog/year-of-the-pig-gold-2019/ https://www.thegoldbullion.co.uk/blog/year-of-the-pig-gold-2019/ Fri, 01 Feb 2019 00:00:00 +0000 Our New Year’s celebrations are well and truly over. Many of us have abandoned our New Year’s resolutions and Blue Monday has come and gone. While many of us are just about over the festive celebrations, many will be preparing for their own New Year’s celebration on the other side of the world in China. The date that the celebrations begin on all depends on the first Lunar Cycle of the year, waiting for the first new moon of 2019. Often referred to as The Spring Festival or the Lunar New Year, the festive period comes to an end on the Lantern Festival. This year the celebrations begin on the 5th February and end on the 19th February.

While we are all now waiting for the next Bank Holiday for a long weekend, the Chinese festive period lasts 15 days with many Chinese people returning to work on the 8th day. During this time traditions are upheld. Most of this time will be spent with family and relatives and indulging in many activities, the majority of them used as a time for good company and good food. All of which is centred on bringing in the New Year and hopefully accumulating some good luck and fortune along the way.

Traditions and Superstitions

During the 15 days of celebration, banks and many shops will be closed. The Chinese will usually start quite early to prepare for the New Year. This will include travelling home to their families, stockpiling food and cleansing their homes of any bad luck. In this time, it is also tradition to decorate your homes ahead of the festive season.  After all, the festive period is a time of good fortune, wealth and happiness.

The Spring Festival travel season known as Chunyun, sees Chinese people travelling home to be with immediate families during the festive season. It is actually seen as the largest annual human migration in the world. This will take place in the week leading up to the Chinese New Year, with people making their way home especially for the New Year’s Eve traditional family meal, also known as the Reunion Dinner.  The Reunion Dinner is an occasion celebrating the last final gathering before the Near Year’s celebrations begin. Most important of all is the food that is eaten. The food consumed is often yellow or golden in colour. In Chinese culture, yellow is the colour of prosperity. The different foods a family will eat often have significant meanings. This is one of the many superstitions which are acted upon during the festive period.

One of the longest standing traditions is the use of fireworks during the festive period. According to legend, there was a monster called Nian which used to terrorise villagers during New Year’s Eve. This would cause the villagers to hide in their homes. However one brave villager decided to set off firecrackers to scare the monster off. From then on it has become a tradition for fireworks to be set off during the New Year’s Celebrations. Whether the myth is true, setting off fireworks is a tradition which is still carried out, with an annual televised fireworks display as well as families setting off their own fireworks.

During Chinese New Year, it is in your best interest to avoid any activities which may cause Bad Luck. The Chinese are superstitious people and will abide by a list of beliefs to amass good fortune which they can carry forward into the New Year. Popular beliefs include avoiding getting a haircut or eating porridge, as they will contribute towards experiencing an unfortunate New Year. Another superstition is that cleaning should be avoiding during New Year’s Day, they believe by cleaning your home you are cleaning away any good luck. Any breakages or accidents should be avoided at all costs and you should avoid crying. It is an especially easy time for children during the festive period as one superstition is to avoid being around someone who is crying. This means that parents will often bribe their children with treats to be on their best behaviours to avoid any tears. As these are long standing traditions, as intense as they sound, they have become second nature for Chinese people, these traditions has been passed down through the generations.

During the New Year period, it is wise to be mindful of your actions. The aim is to avoid any negativity that could impact on your upcoming year. The superstitions and traditions will help you create and maintain as much good luck as possible.  It is custom to give gifts during the New Year’s celebrations, it is actually considered to be one of the luckiest things someone can do.  A very popular tradition is the gifting of money in red envelopes to loved ones. The red envelopes are supposed to ward off evil spirits and to bring good fortune. There are even specific colours to gift. Red yellow and gold are all seen to be the colours of wealth and prosperity.

Chinese Zodiac – The Pig

If you keep up with Chinese Zodiac, you will know we are entering the Year of The Pig.  Similar to astrological zodiac signs as we see in western culture, people believe these zodiac signs carry personality traits and will even predict the future. The difference between astrological zodiac and Chinese zodiac is where as astrological zodiac goes through monthly cycles, the various Chinese zodiac signs have a whole year dedicated to them.

As you may have noticed the Chinese zodiac signs are actually animals. There are 12 animals in total and therefore the cycle runs for 12 years. People born in the years 1947, 1959, 1971, 1983, 1995, 2007, 2019, will all be pigs in the terms of Chinese Zodiac. Each animal in the Chinese zodiac sign has their own personality traits. Those who are ‘pigs’ are often described as being blessed with good fortune and often have beautiful personalities.  Their views are seen to be quite realistic, and will often look at the bigger picture before jumping to conclusions. With that being said, they will rarely hold back.

‘Pigs’ are often described as gentle and humble people. However don’t let this fool you; they will often work tirelessly to seek our positions of power and status. They are strong people with very optimistic views. Their energetic and enthusiastic ways of thinking will often get them noticed. Pigs will often live their life to the fullest, and will often treat themselves when they see fit. They work hard and use this as motivation. They will often work towards a goal and will treat themselves appropriately afterwards.

Whether your Chinese Zodiac sign is a ‘Pig’ or not, why not treat yourself today to something from our Chinese Lunar Year of The Pig Gold Range. Available to purchase now from the PAMP Lunar Series - Year of The Pig gold bars in 5 Gram, 1 Ounce & 8 x 1 Gram in the ‘Multigram’ packaging.

We also have the Lunar Series for the Perth Mint & Royal Mint One Ounce Year of The Pig Gold coins. These coins are also available in silver. View our full Chinese New Year range here.

 

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<![CDATA[The 2019 Gold Sovereign Coin]]> https://www.thegoldbullion.co.uk/blog/the-2019-gold-sovereign-coin/ https://www.thegoldbullion.co.uk/blog/the-2019-gold-sovereign-coin/ Tue, 22 Jan 2019 00:00:00 +0000 The British gold Sovereign is perhaps the most globally recognised coin and enjoys one of the richest histories of any gold coin design. First issued in 1489 during the reign of King Henry VII, it has since undergone various changes as it has been issued to various Kings and Queens throughout the ages.

First produced as a symbol of national strength and wealth, the coin was designed to project prestige, and as such, took the name of the ‘Sovereign’ and depicted the king on his throne, proud and grand in appearance with the Royal Arms of England and a Tudor double rose on the reverse.

A significant origin for a coin that became known as ‘the chief coin in the world’, the gold Sovereign went on to experience various changes as the British Empire evolved – and even now as we celebrate the release of the 2019 gold sovereign coin, this beautiful item continues to attract modern collectors.

The gold Sovereign is now a modern classic and precious metal investors, avid collectors and history buffs alike will be pleased to know that the royal mint 2019 gold sovereign is now in stock! But before you secure your purchase, take a look at the unique heritage behind this fascinating coin.

Origins of the Gold Sovereign

First minted over 500 years ago, it’s no surprise that the 2019 gold Sovereign coin commands a great deal of respect as a coin that offers more than just a sound investment, but also a great deal of cultural and historical significance.

If you follow the coin’s chequered history that spans huge changes to the British Empire, you’ll find that the Sovereign has played a fundamental role in the country’s evolution. It offers a symbol of quality when it comes to the gold bullion market.

Interestingly, the first gold Sovereign coin was the largest in value at 23 carats (95.83 per cent) gold. It was also much larger in size than modern versions such as the gold Sovereign (2019) that has been recently released.

Struck on the 28th October 1489, this new coin was requested by King Henry VII as a statement of England’s power and stability. As such, it featured the king himself in full coronation regalia.

Despite being an impressive origin to a coin that still exists today (albeit in a very different form) production of the first gold sovereigns eventually came to an end in 1604.

Revival

After England defeated Napoleon at the battle of Waterloo in 1815, the coin was struck again in 1817. As Britain’s finances were unstable, it was believed that the ‘Great Recoinage’, as it was called, would be the appropriate reform to steady the economy and bring uniformity to the national currency. And in many respects this was successful.  

This coin, which was designed to bolster the national economy held a monetary value of 20 shillings (one pound) at the time. Also, the new 22 carat gold coin was much smaller in size and therefore could be used more practically during exchanges and trade. The gold sovereign weight was changed to 7.98 grams and this is still the case with contemporary designs, featured most recently with the royal mint 2019 gold sovereign.

St George and the Dragon

This design of St George and the Dragon is perhaps the most recognisable coin related image in the world.  It is also what many of us associate with the gold sovereign although the coin has had many different designs throughout time.

Designed by engraver Benedetto Pistrucci, this adaptation featuring the ancient tale of bravery and loyalty is still used today. Pistrucci’s design is featured on most bullion coins of the 20th Century and therefore holds an important place in the history of the British gold sovereign.

Global Expansion

The Royal Mint also built numerous branches across the British Empire where new coins were struck. The Australian cities of Sydney, Melbourne and Perth each had their own mint, which linked the country to Britain. India, South Africa and Canada also had their own mints and subsequently their own unique history was tied with the development of the UK’s global expansion.

Coins from these Royal Mint locations outside of Britain featured distinguishing marks so that owners could tell where their gold coins had been produced. For example, gold Sovereigns from India have a small ‘I’ engraved into the designs that collectors can spot if they look hard enough.

Victorian Sovereigns

Some of the most significant and popular gold sovereign coin designs originate from the period when Queen Victoria reigned during the 1800s. She was of course one of the most popular monarchs of the nation and enjoyed numerous unique designs dedicated to her throughout the time she ruled over the British Empire.

To match the different periods of the Queen’s maturity, the gold Sovereign coin design was adapted accordingly. The Victoria 'Young Head' (1838 until 1887) design depicted a youthful illustration of Queen Victoria capturing the beginning of her reign.

There was also the Victoria 'Jubilee Head' (1887 to 1893) design that portrayed Queen Victoria as a matronly and imperious figure, as the Empire powerfully stretched across the world.

Finally, the Victoria veiled ‘Old Head’ (1893 to 1901) design focused on the ageing, beloved queen engraved with a veil over her headdress.

Financing WWI

The gold Sovereign played a very important part in WWI. Specifically, it was used to finance the war effort and support the Bank of England’s reserve during a time when the nation needed it most. The large amounts that the government held in store as well as gold that commonly circulated among the people was all put towards the funding of the war effort.

This period also saw the end of the gold Sovereign too for a short time, as circulating coins were traded for new Treasury notes. Citizens were called upon to trade in their gold coins for new Treasury notes and as such they eventually replaced the coin as a method of monetary transaction.

It wasn’t until 1957 when demand for the coin spiked that the gold Sovereign was reintroduced.

Today’s Gold Sovereign

The Royal Mint began manufacturing Sovereign coins again in 1957 as bullion coins. And today these beautiful historical items are used as a form of investment rather than for everyday use. Collectors, investors and anyone interested in the history of the British Empire however will still be able to enjoy this fascinating coin with such a rich and diverse history.

As the 2019 gold Sovereign coin is now in stock, we can once again look back at how this important coin played such a key role in Britain’s history throughout the ages. And now you’ve had a reminder of just how significant this coin design is, why not go ahead and add the 2019 gold Sovereign coin to your collection?

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<![CDATA[What is 916 Gold - Read Today]]> https://www.thegoldbullion.co.uk/blog/what-is-916-gold/ https://www.thegoldbullion.co.uk/blog/what-is-916-gold/ Tue, 08 Jan 2019 00:00:00 +0000 UK Hallmarks

Is the purity and value of your gold one of your greatest concerns when buying gold bars or jewellery? Learn what 916 gold means for your collection.

The value and authenticity of gold has long been a huge concern ever since it was first used as a symbol of wealth and form of currency.

Anyone who collects, owns or regularly trades in gold will want to know its value, however many are uncertain about the various hallmarks and classifications that determine this. This includes information about how pure an item of gold is, who made it and who tested it.

When it comes to gold 916, gold 375 or any other gold type, there are a few theories out there about what these magical numbers mean. But when it comes down to it, the answer to the question ‘what is 916 gold?’ is actually quite simple. Let’s take a look.

What is 916 gold?

To get straight to the point, for gold 916 the number 916 is used to denote 91.6 grams of pure (24 carat) gold per 100 grams of alloy. The figure ‘916’ thus represents 22 carat gold. Similarly, 958 gold is 23 carat gold (23/24) and 750 gold is 18 carat gold (18/24).

Did you know gold 916 was the same as 22 carat gold? While the term 22 carat gold might be more common, these two expressions of gold purity are synonymous, so don’t worry if you’re being sold gold 916 when you’re searching for 22 carat gold jewellery!

916 hallmark gold, aka 22 carat gold, is especially popular for making intricate jewellery and ornaments. This is because it’s more adaptable for delicate and careful craftsmanship. Pure gold of 24 carats is actually too soft for wearable jewellery and more likely to bend or suffer from scratches.

On the other hand, gold bars and coins are often sold with a purity level of 24 carats, or gold 990. This is because these pieces are more solid in design and are commonly used as investment pieces.

You can buy much lower purity gold as well. If you’re asking yourself ‘what is gold 375?’, for example, our more detailed article here will help you understand in more detail.


The Purpose of a Hallmark

A hallmark consists of three compulsory marks and various optional marks. These symbols give the following information:

  1. The Sponsors Mark – who made the article
  2. The Standard Mark – the guaranteed standard of fineness
  3. The Assay Office Mark – the Assay Office where the article was tested and marked
  4. The Date Mark (Optional) – the year in which the article was tested and marked

Pure Gold Discover


What are Hallmarks?

Gold hallmarks originated to show the purity of gold in a piece of gold jewellery and included the mark of the assaying office that certified the purity. This was later followed by a mark of the goldsmith who had manufactured the product.

Essentially, hallmarking is a traditional form of consumer protection dating back to King Louis IX of France and Edward I of England in the 1200s. As gold became more frequently used in Europe, state-appointed assayers examined these precious metal goods to determine their value.

In the UK, all gold products are now required to be hallmarked by one of the four assay offices in London, Birmingham, Sheffield and Edinburgh. Each of these offices has its own mark that can be found on items that have been evaluated there.

In the UK it is illegal to sell or describe any item as gold, silver, platinum or palladium unless it is hallmarked or weighs less than 1g if gold or palladium, 7.78g if silver or 0.5g for platinum. The hallmark guarantees the precious metal content and subsequently its sale price based on the current gold spot price.

Similar systems designed to identify the purity and origin of gold and precious metal items have been introduced around the world. For instance, the Bureau of Indian Standards (BIS) would determine gold 916 purity and award hallmarks on gold jewellery at one of its 330 assaying offices throughout the country. This is to make sure that the gold quality matches up with international purity standards.

Here’s a useful video on determining the essentials of hallmarks in the UK.

Hallmarks video: https://www.youtube.com/watch?v=oXsc-BLs52I

Identifying Hallmarks

The sponsor’s mark

Sponsor's Hallmark

This is the unique mark of the company or person responsible for sending the article for hallmarking. This could be the manufacturer, importer, wholesaler, retailer or individual. However, in order to obtain a sponsor’s mark, you need to register with an assay office.

The standard mark

Precious Metal Hallmarks

The standard mark represents the purity of the precious metal content in parts per 1,000. So, what is gold 916? It is gold to the purity of  916 parts per 1,000 by weight, or 91.6 per 100, and is equivalent to the 22 carat gold (22K) standard. The fineness or purity of gold, and the gold 916 price of the final product can, therefore, be determined by this figure.

The assay office mark

Assay Office Marks

This symbol shows which Assay Office tested and marked the item and each of the main Assay Offices has a distinctive symbol. If you’re wondering how to check gold 916 for its purity, here is a useful link from the Birmingham Assay office.

Optional hallmarks

Date Hallmarks

Commemorative Hallmarks

Traditional Hallmarks

When reviewing your precious metal items, you may come across various ‘optional’ hallmarks. These can include date marks, traditional marks or commemorative marks.

Read the full guide to hallmarks from our experts here to find out even more about exactly what the markings on your gold mean.

How pure is pure?

Despite what some people think, it’s not very common to find pure gold items that are ‘100 per cent’ pure. The purest gold ever recorded only goes up to 999.999 purity, or 99.9999 per cent. This was produced by the Perth Mint in 1957 and assayed by the Worshipful Company of Goldsmiths in London.

This was never commercially released however, so you’re unlikely to find this on any hallmarks you encounter anytime soon. The purest commercially released gold item was minted by the Royal Canadian Mint, at 99.999 per cent pure.

In places all over the world, gold items are typically 22 carats or gold 916. One country in particular that has long appreciated the value of gold is India. From neighbourhood jewellers to world-famous gold markets, gold is an important part of Indian culture and a common gift for various celebrations such as weddings.

Alternative Wedding Gifts

More recently, the popularity of purchasing gold bars and coins has taken off in India as consumers see the value in purchasing pure gold of 24 carats without the extra charges that might come with elaborate jewellery designs. Buying gold bars is also free of VAT and safer from theft when kept in a secure storage facility such as the one at The Gold Bullion Co. And like with any other country, the gold price in India will still depend on the live gold spot price.

If you’re interested in just how gold products are made and why it’s so hard to achieve 100 per cent purity, here’s a great video to see the process in action:

https://www.youtube.com/watch?v=FfOVlnzGzOc/

What you need to know

The world of hallmarks is an interesting one. Especially if you discover historical items featuring marks that are no longer used today in manufacturing. If you are an avid antique or gold collector, there are tonnes of books and articles that you can read on identifying the most unique hallmarks out there.

For the casual buyer, trader or investor however, a general grasp of hallmarks should suffice. This will ensure that you are not cheated when trying to determine the gold 916 rate or value of any other gold item.

When buying or selling gold products, the live gold spot price is applied to the equivalent weight of gold, rather than the overall weight of your product. So regardless of how big your necklace, gold coin or gold bar is, it is only worth as much as the actual gold that it contains.

Finally, we hope you’ve now learned the answer to what is 916 gold as well as a whole lot more about how gold is made and how to determine the gold 916 rate. For all your gold related questions and interests, The Gold Bullion Company is here to help.

Gold Bullion Company

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<![CDATA[Christmas 2018 Opening Hours & Delivery Information]]> https://www.thegoldbullion.co.uk/blog/christmas-2018-opening-hours-delivery-information/ https://www.thegoldbullion.co.uk/blog/christmas-2018-opening-hours-delivery-information/ Sat, 08 Dec 2018 00:00:00 +0000 The Gold Bullion Company office will be closed between Midday on Friday 21st December 2018 to 9am on Thursday 3rd January 2019. During this period our Customer Service Team will not be available to take calls or answer emails.

Our website will continue to accept orders as normal for the duration of the Festive period.

In order to receive your goods before Christmas, please refer to the delivery information below:

Orders Under £300 (Tracked 48 Delivery)
All orders for less than £300 must be received by 2pm on Wednesday 19th December 2018 to ensure delivery in time for Christmas Day. You may, however, upgrade to Next Day Special Delivery for an additional fee to extend this deadline until 2pm on Thursday 20th December 2018

Orders Over £300 (Next Day Special Delivery)
All orders for more than £300 must be received by 2pm on Thursday 20th December 2018. We must receive cleared funds for all orders and any necessary ID by this date to ensure delivery in time for Christmas Day.

All orders after 2pm Thursday 20th December 2018 will be dispatched as normal but are not guaranteed to arrive before Christmas. All orders after 2pm on Friday 21st December 2018 will be dispatched upon our return on Wednesday 3rd January 2018.

Are you still looking for the perfect Christmas gift for someone special in your life?

Take a look at the 2018 Gold Sovereign and the brand new 2019 1oz Gold Britannia, both CGT FREE and VAT FREE products. We also have a range of gift boxes that really put the finishing touch to your bullion gift and made available for you when adding your items to the cart.

The Gold Bullion Company would like to thank all of our customers, new and old, for their support during 2018 and wish you all a Merry Christmas and Prosperous New Year.

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<![CDATA[Gold Price: November Market Swings]]> https://www.thegoldbullion.co.uk/blog/gold-price-november-market-swings/ https://www.thegoldbullion.co.uk/blog/gold-price-november-market-swings/ Thu, 29 Nov 2018 00:00:00 +0000 The gold price has seen a certain amount of fluctuation over the last few weeks, with a considerable amount of upturn since October that analysts believe is the result of concerns over the health of the global economy.

While the overall market seems to be drifting sideways, it is likely that the growing threat of weaker global economic growth, the resulting economic – and political – uncertainty in Europe of Brexit, and the US mid-term elections have all played a part in gold’s market value.

As you’ll already know, gold represents a safe-haven asset that many investors look to in times of turmoil or crisis. And this could well be the reason that precious metal has sustained a moderate price recently. But have the events over the last few months been sufficient to warrant public interest in any potentially record-breaking highs or lows for the gold price? Not really.

Equally, with a Brexit situation yet to be completely finalised, we haven’t seen the full effect of the recent political events just yet. So we may witness some interesting changes to come in the gold market moving into 2019. Let’s take a closer look at how major world events have impacted gold lately.

Brexit, a potential leadership challenge and the unknown

Since striking a deal with the EU, Theresa May has faced tough times trying to convince the UK that her version of the much anticipated Brexit deal was the one everyone should back. In fact, she found it hard enough convincing her own party who have issued multiple no-confidence letters with several ministers even resigning, including her Brexit minister.

May, nevertheless, has pledged to keep pushing forward with her deal and warns that removing her from the position as PM will only weaken any chance the UK has in coming out with a deal that won’t completely derail the economy.

Similar to the last few months, it’s the fear of the unknown that poses the greatest risk to the UK economy. Various industries such as the automotive sector have warned that a bad deal, or no deal, could have disastrous consequences for the nation.

More than two years after the United Kingdom voted to leave the EU, it is still unclear how exactly things will end. Whether May’s deal is a “botched, worst-of-all-worlds deal which is bad for Britain,” as opposition Labour leader Jeremy Corbyn said speaking at the CBI conference, or if this is really the best the UK will get, is something we just can’t answer right now.

But what we do know is that instability such as this usually has the effect of increasing investments in the gold market as investors look to this stable asset as a way to buffer the impact of economic turmoil – as we may see in European markets following Brexit. But is this a serious geopolitical factor for the world marketplace? We’re eager to see.

US stability following mid-terms

Across the pond, things are looking a lot less choppy following the recent midterm elections. Following a dramatic election night, President Donald Trump's Republican Party was able to retain control of the Senate while the Democrats took control of the House of Representatives.

Despite the lively affair, many economists believe the outcome of the US mid-term elections is good news for the US and world economies. Chief among the reasons is the fact that Trump has come out relatively triumphant, avoiding embarrassment by increasing the Republican majority in the Senate.

So what we’re seeing is not a political shift or disruption of serious proportions, but a stable outcome where a strong US economy can continue to operate under a business as usual mentality. Trump’s willingness to communicate with foreign trading superpowers over deals also suggests a better outward-looking economic approach that could benefit the US.

Mining deeper, there may be further cracks and emerging situations to watch, but where gold is concerned, there usually has to be a significant change in the US dollar for there to be any large increase in the gold price.

UK base rate rise and US Fed rate hike

Between 2009 and 2016, UK interest rates remained consistent at 0.5 per cent, following their drastic cut after the financial crisis. The recent rise earlier this year, however, could indicate the Bank of England’s level of trust in the economy, as well as a potential sign of further interest rate rises in years to come.

In the US, the US Federal Reserve raised interest rates by 25 basis points, which is the highest recorded since April 2008. This is part of the Federal Reserve’s target to slowly normalize interest rates over time.

What does this mean for gold? Probably not that much, but let’s take a look anyway. Many investors believe that higher interest rates typically have the effect of driving the price of gold down. This is because as interest rates rise, and bonds and other investment options with high yields become more attractive, gold becomes less popular.

Despite the popular belief of a strong negative correlation between interest rates and the price of gold, a long-term review reveals this relationship isn’t so obvious. While this may well be a contributing factor to a drop in the gold price from time to time when combined with other market activities, it’s probably not the best signal that you should be preparing to sell all your gold before the price drops.

What does The World Gold Council say?

In their Q3 report on the gold market, The World Gold Council highlighted a few interesting facts about the market and recent trends that have taken place.

Recent stock market volatility and currency weakness were said to boost demand in many emerging markets and interestingly, China, the world’s largest gold bar and coin market, saw demand for these items rise 25 per cent year on year since 2017.

Q3 jewellery demand saw a price-led year on year growth of six per cent and the WGC also noted that lower gold prices during July and August encouraged bargain hunting amongst price-sensitive consumers. This is a trend that might follow if political and economic stability ensues in 2019 as more certainty over the Brexit deal and a strengthened US economy potentially have a negative effect on the gold price.

Final word

So all in all, the outcome of the mid-terms, recent developments over Brexit and the other world market factors seem to have only moderately impacted the gold price of late.

We’ve certainly seen some interesting upturns week to week over October and November, but the general direction seems to be sideways at the moment. And through a macro lens, we’re a long way from the price spike we saw earlier in the year.

You can track the gold price on our market reports here and keep an eye on our news feed for the latest updates on the swings in the market that could affect your investment opportunities in gold bullion and gold coins.

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<![CDATA[New Gold Coins: Ones to Watch]]> https://www.thegoldbullion.co.uk/blog/new-gold-coins-ones-to-watch/ https://www.thegoldbullion.co.uk/blog/new-gold-coins-ones-to-watch/ Wed, 21 Nov 2018 00:00:00 +0000 It’s often a much-anticipated occasion when a new coin is released, especially for investors and coin collectors who desire to own every year of a coin that’s minted annually. But why? Aren’t they all variations of the same thing with a similar value? To a certain extent, yes they do hold the same or at least incredibly similar value from the point of view of the precious metal content; but when looked at through the lens of a true gold and silver coin investor or an avid collector, there’s a lot more to it than just the gold or silver content of the coin.

Let’s take a look at what goes into the making of a new coin and how history, design and reputation all play a part in the excitement of a newly released coin onto the market.

The 2019 Silver Britannia

Britannia, the female personification of the British Isles, has long been an iconic figure associated with coinage since she first appeared on the Roman bronze coin in the 1st century AD. Later, the image became a standard feature of British coins, and is said to embody the nation’s strength and durability. As the 2019 Silver Britannia coin shows, it is still used today as a prominent feature of all gold and silver Britannia coins.

We’ve seen various alterations over the years of the classic Britannia design, with some versions choosing to feature a trident rather than a spear to highlight Britain’s maritime trade and history. But they all depict in some form or other, a strong female figure – not too dissimilar to the numerous Queens that have reigned over the course of British history.

Even in the last 10 years, we’ve witnessed an intriguing evolution in the Britannia design, with annual editions reimagining this iconic visual representation of British history and power. And for this reason, investors and collectors of gold or silver Britannia coins such as the 2018 Silver Britannia, will want to add this latest edition to their collections and investment portfolios.

As well as being a monumental moment in history where the definition of being British is under examination, as we evaluate our ties to Europe, the most recent Britannia represents an important symbol of UK heritage through coinage.

If you’re interested in other Britannia coins, take a look at how this popular design has been adapted throughout time by various artists by taking a look at our full range.

View the full range of Britannias and keep an eye out for the 2019 Silver Britannia

The 2019 Sovereign

The Sovereign coin was first produced during the reign of King Henry VII and was designed as a testament of national strength and wealth. Adopting the title of the ‘sovereign’ in the king’s honour, it became a symbol of prestige that continues to this day to be associated with wealth and top-quality coinage.

Following a period when King Henry VIII’s visage was featured on its face, the coin was later revived after England’s defeat of Napoleon at the Battle of Waterloo. Here entered the iconic symbol of St George and the Dragon, designed by engraver Benedetto Pistrucci – an image that is still in use today, signifying unwavering bravery and loyalty as suggested by the ancient tale.

This famous scene of good triumphing over evil, with its distinctive depiction in bold, direct movements as shown by the horse and rider, went on to become a recognised feature in more than 20 countries.

Pistrucci’s design is featured on almost every Sovereign bullion coin of the 20th Century, minus only a few occasions, and it is one of the world’s most iconic gold coin designs. It also enjoys an elevated reputation in the market, representing the highest standards of the coin maker’s art.

At one point, this coin even became known as ‘the chief coin in the world’. Some might say this is a good enough reason alone to invest in the new 2019 gold sovereign coin. But together with its fascinating provenance rooted in British history and western civilisation, the gold sovereign continues to be a very special piece in the bullion market.

Arguably no other gold bullion coin comes with the same certainties of value, weight and accuracy. If this has piqued your interest, take a look at this and other sovereigns such as the 2018 and 2013 gold sovereigns in our full range.

The Indian Mint Mark Sovereign

To distinguish between each of the various Royal Mint locations across the British Empire, gold Sovereigns had to be marked with a symbol to indicate the city or country of their origin.

In 1918, the Royal Mint established a branch in Bombay, within the Indian Government Mint. Only open for a year initially, it produced a considerable batch of coins, distinguished by the letter “I”, which you can see stamped above the date. Look closely and you’ll see!

Eventually, in 2013, the Royal Mint licenced MMTC-PAMP India to strike the commemorative Sovereign in India. And today, this coin now plays a big part in traditional Indian ceremonies and celebrations, especially at Indian wedding ceremonies and festivals where they are often highly-prized as a desired gift item.

The introduction of this coin also reduced imitation coins impacting the market, as the nation now had an original coin design. It also represents both purity and integrity, in addition to the inherent connotations of the British sovereign coin.

This historic coin is now one of the most popular additions to the bullion market with a rich history and a vast demand from Indian consumers, who see more than just the market value in these items – as many true gold investors will do too.

Whether you’re interested in purchasing the new 2018 Indian Mint Mark Sovereign or other sovereign coins released over the years, explore our full range online that also includes several coins of note from locations once belonging to the vast British Empire.

Why invest in coins of note?

Whether you are looking to invest, protect yourself against market crises or simply add to your amazing collection of historical coins now may be the perfect time to invest in one of these fantastic gold and silver coins.

In addition to being a reliable long-term investment, these gold bullion coins are globally recognised and in wide circulation, making them easy to trade, value and sell whenever you need.

Make sure you take a look at our entire range of coins, and keep an eye out for those mentioned here as well as other extraordinary additions to the gold and silver coin market over the past few years. They are truly a spectacle to behold!

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<![CDATA[Can You Buy Gold with a Credit Card?]]> https://www.thegoldbullion.co.uk/blog/can-you-buy-gold-with-a-credit-card/ https://www.thegoldbullion.co.uk/blog/can-you-buy-gold-with-a-credit-card/ Tue, 13 Nov 2018 00:00:00 +0000 When people are looking to buy gold or silver for investment online, they often want to use their credit card or debit card as a preferred payment method. We have always enabled our customers to buy gold with a credit card on our website and we don’t charge you for the privilege either.

We made the decision to remove charges for personal credit card payments in 2018 to offer our customers a much better experience when they decide to invest in gold with us.

Read on to discover how you could benefit when you purchase your gold with a credit card today.

Can I use a credit card to buy gold online?

Yes, when you buy gold bullion online at The Gold Bullion Co. you will see an option to complete your purchase with a credit card or debit card. Since the start of 2018, we now no longer charge our customers a fee for using this payment option. We accept payments from Visa Debit, Visa Electron, MasterCard Debit and Maestro but unfortunately you aren’t able to buy gold with Amex.

However, unfortunately we are unable to accept any payment made with a corporate credit card or business credit card, due to the higher fees that are associated with processing these payments.

Will my payments be secure when using a credit card?

Yes, we have taken extra steps to ensure that our customers are not vulnerable to cybercrime and credit card fraud when they purchase their gold bullion through our website. We have an SSL security certificate which has been installed on our website that encrypts all of your personal data to complete your gold bullion purchase.

Further, when you buy gold from us, we won’t process or record any card numbers during the payment process. Instead, you will be moved to a secure processing facility from SagePay that means we are unable to store or handle your personal data, which will guarantee a more secure transaction process for you.

You can rest assured that whenever you are required to provide us with your personal data, or when your personal data is on display during the checkout process, these areas of our website will be encrypted. If you can see a padlock icon or our company name highlighted near the address bar (depending on the internet browser), when you click on it, you will be able to see the security certificate information.

The precious metal industry is unfortunately vulnerable to being exploited by cybercriminals and credit card fraudsters, which is why we prioritise our customer’s safety when they choose to purchase their gold bullion through us.

Discover more about our efforts to keep your personal data and credit card details safe.

Why should I buy gold with a credit card online?

Many people buy gold with a credit card for the benefits of payment protections offered by their card provider. It’s a clear bonus for our customers and something we’re proud to have worked to enable without additional cost.

After taking the time to investigate the best way of providing a secure method of payment for our customers to buy gold with their credit or debit cards, we have been able to offer safe and quick payment systems on our website with your credit card. However, you can also purchase gold via bank transfer either online or in branch, when you buy gold from The Gold Bullion Co.

Do I have to use my credit card to buy gold?

No, you can also buy gold online with a debit card or via bank transfer which can be made online or in branch, depending on how you choose to do your personal banking. We do ask that you use your order number as a reference when you choose to pay using bank transfer and all payments must be received within 24 hours.

Now you can buy gold online with a credit card without incurring extra fees. Choose The Gold Bullion Co. to purchase gold securely today.

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<![CDATA[Gold Price Reacts as Diwali Approaches]]> https://www.thegoldbullion.co.uk/blog/gold-price-reacts-as-diwali-approaches/ https://www.thegoldbullion.co.uk/blog/gold-price-reacts-as-diwali-approaches/ Tue, 30 Oct 2018 00:00:00 +0000 Diwali is a popular time of year for buying gold bullion because it has a very important link to the Hindu religion. But investors can also make a pretty penny by choosing to buy gold bullion at this time of year, as the gold price reaches one of its peaks due to the sheer numbers of interested buyers in this valuable commodity.

Find out more about how the Hindu festival of Diwali affects the gold bullion market below.

What is the Hindu festival of Diwali?

The Hindu festival of Diwali is celebrated on the 7th November in 2018 and is also known as the festival of light. The importance of gold comes into play because of the story behind the Hindu festival. According to legend, the King of Hima’s son was supposed to have been killed by a snake bite on the 4th day of his marriage but he miraculously survived, thanks to his quick-thinking wife.

The king’s son survived his date with destiny due to his wife collecting the family gold and placing it outside his door. When the snake came along, it became so confused and blinded by the light reflecting off of the gold, that it got disoriented and went away – thus saving the life of the son of the king.

In remembrance of King Hima’s son being delivered from the evil of the snake bite, many Hindu families give each other gifts of gold jewellery and gold bullion at Diwali, to symbolise hope, luck and wealth for the coming year.     

When should you invest in gold at Diwali?

Although it’s traditional to give gold jewellery as a gift at Diwali, in recent years, many people are also giving more investment-based gold bullion products, such as gold coins and gold bars, because it is considered a safe place to invest capital, due to the comparatively steady pace of the gold price, compared to the stronger fluctuations that tend to affect the stock market.

The steady gold price, which often reaches a peak during Diwali due to the sheer demand for the precious metal, can help investors improve their financial security thanks to the fact that gold tends to offer a hedge against the stock markets.

How has Diwali affected the gold market in 2018?

India is one of the largest markets in the world for gold bullion. However, this year has seen an unprecedented increase in gold prices in the run-up to the festival of Diwali. As more and more people in India seek to place their money in gold bullion investments in part due to the annual timing of Diwali, and also because the rupee has devalued to the tune of over 15 per cent this year, gold bullion prices are seeing a lot of activity.

Whether you’re buying gold as an investor or looking for the perfect gift for friends and family, Diwali is a wonderful time to explore the range of gold bullion products on the market.

Take a look at our gold coins here for an unusual gift with a range of options that should allow you to find symbolism and interest to grab the attention of the recipient for good.

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<![CDATA[Checking for Counterfeit Gold]]> https://www.thegoldbullion.co.uk/blog/checking-for-counterfeit-gold/ https://www.thegoldbullion.co.uk/blog/checking-for-counterfeit-gold/ Tue, 23 Oct 2018 23:00:00 +0000 The gold bullion and precious metal industry has struggled for a while now to control the flow of counterfeit gold coins and bars. The sad reality is that scam artists are out there making fake gold coins and fake gold bars and investors today need to be savvy if they want to avoid adding any counterfeit product to their collections.

In the fall-out from the 2008 financial crisis, many people turned to the precious metal industry as a safer place to invest their capital. Suddenly, gold bullion investment became more popular and counterfeiters have taken advantage.

While there is no denying the risk of buying counterfeit gold is on the rise, there are some relatively simple ways you can protect yourself from falling foul of the fraudsters. Our experts have pulled some top tips together to help you check for counterfeit products and ensure you’re only buying the genuine article.

Where does counterfeit gold come from?

Most of the counterfeit gold that is available to purchase online is thought to come from Chinese factories that are dedicated to producing thousands of coins and gold bars on a monthly basis. There is good reason to suspect the region due to the fact that these businesses are legal in China and they can even list their wares on retail sites such as Alibaba without fear of recrimination from the Chinese authorities. They often advertise their counterfeit gold bullion as ‘gold-plated tungsten’ and are selling both coins and bars on the open market.

This is just one end of the counterfeit gold bullion trade, the other is the retailer or seller, and many of these unscrupulous traders will use unverified websites such as Craigslist and eBay to flog their dodgy goods to unsuspecting gold bullion investors or collectors. It’s important to understand the sheer volume of fakes being pushed with the mass production of fake gold bullion made from inferior metals.

What is counterfeit gold?

Counterfeit gold bullion coins and bars are designed to mimic their genuine counterparts that have been authentically minted and released from original mints from all over the world. These include The Royal Australian Mint, The Royal Canadian Mint, The Royal Mint and The South African Mint, which are just some that have been affected by the counterfeiting trade.

Counterfeiters produce their counterfeit gold bullion coins and fake gold bars to sell to unsuspecting investors using several methods to copy the originals. In most cases, the amount of gold that has been used in these counterfeit gold coins and gold bars does not match the amount found in the originals. This is often achieved by using an inferior base metal with layered gold on top to create the desired appearance that has fooled so many investors.

What’s even more shocking is that counterfeit bullion factories have even discovered a way to stamp unique serial numbers on to their products, whereas in the past each product was stamped with the same serial number, making it easier to spot a fake.

Investors who buy gold bullion through a reputable supplier can rest assured that they can reduce the risk of purchasing a counterfeit product. At The Gold Bullion Co. we take certain measures to ensure that our products have passed strict verification checks, such as being passed through an X-ray fluorescence analyser and checking that they have been officially certified.

If you are concerned that you have inadvertently purchased counterfeit gold bullion, then it’s a good idea to get your bullion examined by an industry professional. Although we are unable to offer this specific service to our clients’ current stock, knowing that we’ve carried out the professional checks when you buy new items from us does ensure that you never have to go through the worry in the first place.

How can you detect counterfeit gold?

The question of course is, how would you know when a fake passes through your hands? Well, we don’t want to give away all of our secrets but here is a sneak peek.

As technology improves, as well as the experience and knowledge of counterfeiters, it’s becoming even harder for investors and professionals alike to determine originals from the official mints compared to the fakes.

Until fairly recently, it was a lot easier for gold bullion industry experts to find counterfeit gold coins and bars. This is because they could easily judge a fake by its packaging, which often used dodgy blister-packs, or sometimes arrived completely unsealed without any packaging at all. The appearance of the gold coin or bar itself was also a lot easier to compare against the original.

What’s changed is that the counterfeiters have become wise to this and are now taking a lot more care and attention over their fakes, which are becoming even harder for even the experts to identify, let alone the average investor who isn’t handling large quantities of gold bullion on a daily basis.

Counterfeiters are now even using the same production methods as the original mints, and the end result is packaging that is almost identical to the original gold bullion product. We’re now at the stage where almost any precious metal is at risk of being counterfeited by these sophisticated factories.

There are some basic checks that gold bullion investors can make at home to reduce the chances of falling victim to counterfeiters.

Most importantly, the best advice we can offer is to only purchase gold bullion coins and bars through accredited traders such as The Gold Bullion Co. An established and reputable company that handles large quantities of gold bullion products every day is far less likely to leave you holding a fake. This is mostly because these handlers will know what’s what when it comes to finding a fake. These companies are also much closer to the original mints and receive their products directly from them, ensuring they are viable and legitimate goods.

If you’re really tempted to go off-piste, then you must also make note of the price of gold bullion that is being sold online. If you feel that the price is too good to believe, then the odds are that this is correct and you should stay well away from these sellers. Gold bullion is always sold at the market gold price as a minimum. Many fraudsters advertise their counterfeit gold bullion at very low prices, which should be the first red flag to any investor.

If you see gold bullion privately listed for sale on popular websites such as eBay or Craigslist, then you should be extremely cautious. It’s recommended for good measure that you avoid these sites altogether when sourcing your precious metal investments as fraudsters typically use these platforms to sell their counterfeit gold bullion bars and coins. So make sure you only purchase through credible websites to ensure the quality of your gold bullion. In many cases by the time you realise your purchase is a fake, the original seller will be completely out of contact and probably many miles away, so it’ll be near impossible to trace them for a refund.

Gold bar counterfeit detection

In most cases, counterfeiters use inferior metals to re-create gold bullion bars in their factories and one common way of doing so is to fill the inside of the bar with tungsten, which alters the weight when compared to an original gold bar. Make sure you measure the weight and dimension of any suspect gold bar against an original one to check that it’s not a counterfeit copy.

Original gold bullion bars will have various engravings and markings from the official mint producer. If you are a dab-hand at gold bullion investment then you will know the various producers and their markings, so you can quickly tell if you have a counterfeit gold bar on your hands. If there are abnormalities, or variations in the size and dimensions compared to your original gold bullion bars, then this is a clear sign that you could have mistakenly bought a counterfeit.

Another verification method is to see if your gold bar is magnetic with a rare-earth magnet. If your suspect gold bar is reading as magnetic, then this is a sign that it could be a counterfeit because gold isn’t a magnetic metal. However, this test isn’t always 100 per cent accurate because there are some counterfeit metals that can pass this test.

You can avoid counterfeit gold by purchasing gold bullion bars from the Swiss brand PAMP, as they’ve developed a unique system to verify their products that is currently revolutionising the gold bullion industry. Known as Veriscan technology, it’s quickly out-foxing counterfeiters due to the complex technology it uses. These products are marked with the VERISCAN logo, to ensure it’s an original – so this is something you should definitely look out for to give you some peace of mind.

When you download PAMP’s PC software or the Veriscan iPhone app, you can use this as a tool alongside any document scanner to analyse the trade mark PAMP bullion-positioning frame, so that you can quickly check the authenticity of your Veriscan gold bullion bar.

Gold coin counterfeit detection

Sadly, the same is true with coins; if you’re investing in gold bullion coins, it’s becoming more and more difficult to avoid mistakenly purchasing a counterfeit. Fake gold bullion coins are being produced with such expert care that it’s easier than ever to fall foul of the scammers.

As with gold bullion bars, you will need to ensure that you check any packaging to see if it feels like rubber or if you can see any glue marks when you open the package. It’s a good idea to try to fit a suspect coin into packaging you know to be an original from an authentic coin, to see if the dimensions are the same. If you notice anything amiss during these checks, then you may have bought a counterfeit coin.

One of the advantages of using reputable traders like The Gold Bullion Co, is that we can identify original packaging very quickly thanks to the high frequency with which we receive shipments directly from the mints themselves. Our team are able to assess certain properties of the coin such as the weight and design to help them determine the authenticity of just about any given coin.

If you pay close attention to the overall quality and condition of your suspect gold bullion coin compared to an original, this can also help you spot some important differences that might present themselves. Areas to take note of are the diameter, edge lettering, weight, surface imperfections or thickness, any significant differences here will likely mean that you’ve been sold a fake.

Counterfeit gold coins, similar to counterfeit gold bars, will have been made using inferior metals like zinc, copper; steel and tungsten core too, with gold used on top. Most counterfeit coins have a gold amount which is less than 0.03mm, and the dimensions will usually not be the same as original gold coins.

How to avoid buying counterfeit gold?

So there you have it; it’s a minefield out there at the moment. One of the few sure-fire ways to avoid purchasing a fake gold coin or fake gold bar is to only go through accredited companies like The Gold Bullion Co. We have the experience and the expertise to spot a fake gold bullion coin or bar and we’ll take care to keep them away from our customers at all costs. Every item that is listed on our website has passed rigorous verification checks to ensure that they are original.

Browse our genuine gold coins and gold bars today.

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<![CDATA[The US Eagle Coins]]> https://www.thegoldbullion.co.uk/blog/the-us-eagle-coins/ https://www.thegoldbullion.co.uk/blog/the-us-eagle-coins/ Wed, 17 Oct 2018 23:00:00 +0000 Gold and silver bullion investors across the world have bought the American Eagle silver coin and the American Eagle gold coin for their spectacular design as well as their strong investment value. We have outlined the reasons why these beautiful coins from the US Mint have been so successful since their release in 1986.

What are the US Eagle coins?

The American silver Eagle coins and the American gold Eagle coins were re-designed in 1986 following The Gold Bullion Coin Act and The Liberty Coin Act of 1985 that were brought in during Ronald Regan’s presidency.

Under the Gold Bullion Coin Act of 1985 it’s stated that only the US Mint could strike the gold and silver bullion coins, among which was the American Eagle coin. It also stated that only gold that has been mined inside the US could be used in the production of gold bullion coins by the US Mint.

Are American Eagle coins legal tender?

You can use any of the modern releases of the American gold Eagle coins as legal tender, as they have a set value under the Gold Bullion Coin Act of 1985.

This new law also detailed the set value of each US Eagle gold bullion coin, which is as follows:

  • 1oz coin to be valued at $50
  • 1/2oz coin to be valued at $25
  • 1/4oz coin to be valued at $10
  • 1/10oz coin to be valued at $5

However, the value of the gold bullion in these coins is much higher than that of their tender value, often reaching over a thousand dollars, which is why these gold bullion American Eagle coins are seen as such a highly prized investment, especially during uncertain economic times when the stock markets fluctuate and gold tends to rise.

How many versions of American Eagle gold coins are there?

The American Eagle gold coin has been struck in a number of sizes and currently there are four different sizes of the American Eagle gold coin available to purchase.

  • The 1/10oz coin weighs 3.3930g, has a fine gold content of 3.110g and measures 16.5mm in diameter
  • The 1/4oz coin weighs 8.4830g, has a fine gold content of 7.776g and measures 22.0mm in diameter
  • The 1/2oz coin weighs 16.9660g, has a fine gold content of 15.552g and measures 27.0mm in diameter
  • The 1oz coin weighs 33.9313g, has a fine gold content of 31.104g and measures 32.7mm in diameter

Are there rare versions of the US Eagle gold coin?

There is a special variety of the Double Eagle gold coin, which is called the “Saint Gaudens High relief Roman Numerals 1907”, which has the date 1907 in Roman numerals instead of the Arabic numbers. This coin was eventually discontinued in 1933 until it was re-struck with a new modern design in 1986.

When the American Eagle gold coins were first minted in 1986 until 1991, they were depicted with Roman numerals but any American Eagle gold coins that were struck after 1991 are depicted with standard Arabic numerals.

Is the American Eagle coin made of pure gold?

The American Eagle gold coin is mostly pure gold bullion but a small percentage of it is in fact made from a metal alloy comprising of 5.33 per cent copper and 3 per cent silver. This was added to strengthen the coin because gold is such a soft metal.

The US Eagle silver coin design since 1986

The design on all American Eagle silver coins has the ‘Walking Liberty’ symbol on the obverse or the front side, which was originally adapted from a much older 1916 design by US sculptor Adolph A. Weinman.

The reverse side has an image of a heraldic eagle and a shield, holding an olive branch and arrows in its talons with 13 stars depicted above its head, which represent the original 13 American colonies when they won their independence from the UK.

The reverse side was designed back in 1986 by John Mercanti, who was working for the US Mint at the time. The words depicted on this side read ‘UNITED STATES OF AMERICA’ and ‘1oz, FINE Silver – ONE DOLLAR’.

The US Eagle gold coin design since 1986

The obverse side of the US Eagle gold bullion coin was inspired by an original design by Augustus Saint-Gaudens. His older coins which are referred to as ‘eagles’, were originally minted in the year of his death, 1907.

First struck in 1986, the design features a standing Lady Liberty holding a torch in one hand and an olive branch in another. You can clearly see the word ‘LIBERTY’ above her head and on the bottom right hand side of the coin, the year it was minted is displayed.

The reverse side of the coin depicts a male American bald eagle with an olive branch in its beak, descending to roost with a female bald eagle and their hatchlings. This design symbolises family unity and the American national spirit.

To the right of the coin are the words ‘E PLURIBUS UNUM’, to the left hand side the words ‘IN GOD WE TRUST’ is visible and above the eagle family are the words ‘UNITED STATES OF AMERICA’, with the gold coin purity level clearly depicted at the bottom of the coin. For example, ‘1oz FINE GOLD – 50 DOLLARS’.

What sizes is the American Eagle silver coin made in?

There is only one size of the American Eagle silver coin which is the 1oz coin, measuring 40.6mm in diameter. Its purity level is .999 and the coin in total weighs 31.1000g.

Are US Eagle coins considered a good investment?

After the modern US Eagle coins were released in 1986, they have gone on to become one of the most popular gold and silver coin investments in the world. Investors’ confidence is buoyed by the origin of the coins – the official US Mint – and they’re recognised around the world as a trustworthy gold bullion product.

If you want to invest in American Eagle gold bullion coins or American Eagle silver bullion coins, then you can browse the selections available at The Gold Bullion Co. today.

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<![CDATA[NEW! The Falcon of The Plantagenets Coins Available for Pre-Order]]> https://www.thegoldbullion.co.uk/blog/new-the-falcon-of-the-plantagenets-coins-available-for-pre-order/ https://www.thegoldbullion.co.uk/blog/new-the-falcon-of-the-plantagenets-coins-available-for-pre-order/ Wed, 19 Sep 2018 23:00:00 +0000 Many gold coin and silver coin collectors and investors will be pleased to find out that The Royal Mint has released the sixth coin from their popular commemorative collection titled ‘The Queen’s Beasts’. The Falcon of The Plantagenets, is now available to pre-order in both a gold and silver variation.

You can buy The Falcon of The Plantagenets gold coin as a 1oz coin and you can buy the silver coin in a 2oz version. Both versions look set to be popular with those collecting the full run of The Queen’s Beasts coin series, as well as those just starting out.

This latest coin comes after The Black Bull of Clarence gold and silver coins, which were released by The Royal Mint earlier in May 2018. Read on to find out more about the history of this coin series and just why they’re proving so popular.

The Falcon of The Plantagenets coin

Jody Clark, a renowned British designer, is the expertise behind the look of these expertly crafted coins from the Royal Mint’s Queen’s Beasts collection. The Falcon of The Plantagenets design – available in both gold and silver – will feature Queen Elizabeth II’s portrait on the obverse of each coin. The gold version of the coin bears the inscription ‘The Falcon of The Plantagenets’ 1oz, Fine Gold, 999.9, 2019, whereas the silver version of the same coin’s inscription reads ‘The Falcon of The Plantagenets’, 2oz, Fine Silver, 999.9, 2019.

Savvy investors among our readership will no doubt want to know the purity level of these stunning new coins. The Falcon of The Plantagenets gold coin has a purity level of 999.9 and contains 31.1g of fine gold, measuring 32.69mm in diameter. The gold coin’s denomination value is £100 and of course has the bonus of being 0 per cent VAT, as well as being CGT-free.

The purity level of The Falcon of The Plantagenets silver coin is at 999.9 and it contains 62.2g of fine silver and measures 38.61mm in diameter. The silver coin is valued at £5. Unfortunately there is a 20 per cent VAT charge due to pay on the silver coin, but like the gold coin, the silver Falcon is also CGT-free.

Next in a long line of the Queen’s Beast’s commemorative coins

For those investors who have only just found out about The Queen’s Beasts commemorative collection, not to worry, there are future releases planned until September 2020 and you can still purchase coins released previously.

Here’s what’s still to come in the series after The Falcon of The Plantagenets:

  • The Yale of Beaufort – released in March 2019
  • The White Lion of Mortimer – released in September 2019
  • The White Horse of Hanover – released in March 2020
  • The White Greyhound of Richmond – released in September 2020

These future releases of both gold and silver coins will also be available to purchase online from The Gold Bullion Co. at a later date.

Keep an eye on our news page or subscribe to our email newsletter to be among the first to hear of future releases!

The Queen’s Beasts coin series – a background

The commemorative coin collection series named ‘The Queen’s Beasts’, is a 10-part series featuring unique designs for each coin. These designs have been inspired by plaster sculptures which were used in the Queen’s 1953 coronation. Each different coin available in The Queen’s Beasts collection has been struck in gold and silver, however, some coins have also been minted in platinum and as larger 10oz silver versions alongside the 2oz coin.

Sixth in the coin series, The Falcon of The Plantagenets is available to pre-order in both gold coins and silver coins which will be a delightful addition to an avid coin collector’s assortment. With their high purity levels, these coins will also be a solid investment choice with the added potential bonus of an extra uplift should demand increase.

What else is available from The Queen’s Beast’s coin series?

There are five other coins which have already been released by The Royal Mint from The Queen’s Beasts collection, they are still available but harder to come by. We’d recommend keeping an eye out for these if you’re serious about completing your collection.

The Lion of England

Originally released back in March 2016, The Lion of England coin was a natural choice for the first of The Queen’s Beasts series. The classic symbol of England is recognised by young and old and has had a charming re-vamp from The Royal Mint.

This classic image of England is sure to warm the hearts of Britain’s most savvy investors and you can buy this beautiful coin in 1oz gold, while the silver version comes as both a 2oz and a 10oz coin. There is also a fine platinum edition of the coin to keep an eye out for.

The Unicorn of Scotland

Issued in November 2017, the second coin in the series is The Unicorn of Scotland, which is also a supporting heraldic beast of the British royal family. The unicorn is a celebrated icon of Scottish heritage and a symbol of national pride which has been in recorded use since 1100 AD.

The Unicorn of Scotland commemorative coin has been struck in both precious metals and like the rest of the collection, the silver coin is a 2oz coin.

The Red Dragon of Wales

Next to be issued was The Red Dragon of Wales, which represents the country and legends of Wales. The Red Dragon of Wales coins are available to collect in 1oz gold and 2oz silver versions. These each boast a 999.9 purity grade, while the platinum version is 999.5 purity.

The Griffin of Edward III

Fourth in the collection is The Griffin of Edward III, which has been minted as a 2oz silver coin and a 1oz gold coin and represents vigilance, courage and above all, strength. This is a famous royal heraldic beast that was first used by King Edward III. Collectors will be pleased to know that there is also platinum version of the coin in 999.5 purity rating.

The Black Bull of Clarence

The most recent and fifth release before The Falcon of The Plantagenets was The Black Bull of Clarence. This heraldic beast was inherited by the Queen through her ancestor Edward IV, who was from the House of York. According to popular legend, the bull was a York family heraldic beast and was also used by Richard III who was Edward IV’s brother and coincidentally, the last king of York.

This coin is available in the 1oz gold and 2oz silver variation, just like the rest of the coins in The Queen’s Beasts commemorative collection.

This is all very interesting, but what exactly are the Queen’s Beasts?

Dating back to the medieval times, the royalty and nobility used certain animals, both imagined and real, to represent status and power. The British royal family has had many variations of heraldic beasts (as these animals have become known) feature on the Royal Coat of Arms representing the United Kingdom as well as to differentiate between the various members of their family.

The concept of The Queen’s Beasts, was born out of 10 original stone statues lining the entrance to Hampton Court Palace, which have been referred to as ‘The King’s Beasts’ for hundreds of years. These same heraldic beasts that have patiently been guarding Hampton Court Palace can also be found at St George’s Chapel at Windsor Castle.

Historians managed to unravel the origin story of ‘The King’s Beasts’ and have concluded that the statues were commissioned by King Henry VIII during the time of his marriage to Jane Seymour, who was his third wife. Each heraldic beast or animal statue can be seen to be carrying a shield with either a coat of arms or a heraldic badge; these symbols pertain to the shared ancestry of Henry VIII and his queen.

When it was time for Queen Elizabeth II to be crowned, it was decided that the British Ministry of Works should commission 10 new heraldic beasts which illustrate the Queen’s heritage and ancestry. The Queen’s Beasts, as they were soon to be called, were sculpted out of plaster by James Woodford, and the beasts that were chosen have at some point in time, become heraldic supporters on the royal family’s coat of arms.

Standing at six feet tall, the plaster sculptures originally only had their shields painted in bright colours for the coronation. They were placed in the temporary Western annex in Westminster Abbey, forming a guard of honour of sorts, as the soon to be crowned Queen Elizabeth walked into the abbey.

After the coronation, the queen bestowed her 10 heraldic beasts to the Canadian people and you can still view them there today at the Canadian Museum of History in Quebec. There are also stone imitations of the Queen’s Beasts guarding the palm house in Kew Gardens.

It was decided that the Queen’s 10 heraldic beasts, which provided a grand and no-doubt imposing entrance for the queen, should represent those used by a different family from her ancestry. The beasts in the collection are:

  • ‘The Yale of Beaufort’
  • ‘The Falcon of The Plantagenets’.
  • ‘The White Greyhound of Richmond’
  • ‘The Griffin of Edward III’
  • ‘The White Lion of Mortimer’
  • ‘The Red Dragon of Wales’
  • ‘The White Horse of Hannover’
  • ‘The Lion of England’
  • ‘The Black Bull of Clarence’
  • ‘The Unicorn of Scotland’

The origin story of The Falcon of The Plantagenets Coin

The Falcon of The Plantagenets came to the Queen through her ancestor King Edward III, who was himself descended from The Plantagenets family who originated in France. When he became king, Edward III chose his heraldic beast based on his favourite pastime, hawking, and thus the falcon beast was born. It soon became a popular choice and his great-great-grandson later adopted it when he became Edward IV of England.

When The Falcon of The Plantagenets features on a shield or coat of arms, the falcon can be seen standing on a golden padlock or ‘fetterlock’ which is always depicted open. This represents the bearer’s right to the British throne and is symbolic of Edward IV’s difficulty in assuming the throne, as he ‘broke the lock’ to get there.

Is it time to start your gold coin collection?

As the markets fluctuate, the gold price offers a remarkable hedge during times of uncertainty. Historically this beautiful precious metal has been shown to increase in value during uncertainty, like Brexit.

But why choose gold coins over – or as well as – gold bullion? The main difference when collecting commemorative coins is that you will not only benefit from the gold price in line with their phenomenal purity levels, but you could also see an increase due to their status as potential rare collector’s items.

The objective with gold coins is that you hope to see an increase in value over time, as the demand for rare collector’s items grows long after the original mint. Although it’s hard to predict which coins will become prized possessions, there has already been a noticeable increase in value of other coins from The Queen’s Beasts series, which bodes well for The Falcon of The Plantagenets coin.

Tempted? We’ve a huge range of gold and silver coins available for purchase including gold sovereigns, antique gold coins and more.

Don’t forget there are other commemorative bullion coins you can buy from previous collections struck by The Royal Mint too. You can also read up on the latest news and features on our gold blog to stay on top of what’s happening in the gold investment market and decide which gold bullion products are right for you.

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<![CDATA[VAT Free Silver: Everything You Need to Know]]> https://www.thegoldbullion.co.uk/blog/vat-free-silver-everything-you-need-to-know/ https://www.thegoldbullion.co.uk/blog/vat-free-silver-everything-you-need-to-know/ Sun, 19 Aug 2018 23:00:00 +0000 It comes as a profound source of frustration to precious metals traders everywhere that silver remains subject to VAT in most European countries. Where gold, its glitzier and more valuable precious metal cousin, has been exempt from the tax since the turn of the millennium, physical silver bars and silver coins unfortunately remain subject to a 20 per cent tax rate.

The flat rate has a far more profound effect on the wider financial market than simply silver investors having to pay a little more tax than gold investors. In fact, it vastly reduces silver’s potential as a credible trading commodity all together. Luckily, silver investors looking to invest in silver without a 20 per cent barrier have some options.

Here’s everything you need to know about VAT and silver.

VAT: gold vs. silver

In the 20th century, gold was subject to exactly the same VAT charges that other precious metals and most commodities are today.

Naturally, with VAT rates being vastly different from country to country, it means that potential investors often travelled to find the most competitive VAT rates for their products. VAT in the UK sat between 10 per cent and 17.5 per cent, with other nearby European countries charging much lower or even no VAT charges at all.

In the 1990s, the European Union wanted to develop a single unified VAT rate for investment gold, in order to curb this effect. The chances of them reaching agreement across countries for a unified VAT rate were next to impossible – so they decided instead to unilaterally abolish VAT charges on investment gold across the European Union.

This brought the commodity in line with other investment options, like stocks and bonds, which are also not subject to VAT.

Silver wasn’t and isn’t as widely traded as gold, and was much less valuable – meaning the urgency for a unified VAT rate was far less. While it’s certainly a good thing that all investment gold is VAT free – it’s particularly unfortunate that silver has never been accorded the same status.

What would a VAT free silver market look like?

In order for a silver investment to be worthwhile, it must rise in value by at least 20 per cent before investors can begin to make profits.

As it’s fairly rare for such a profound change in value to happen over a short time period, silver becomes a far more long-term investment than it would otherwise be.

If you look at a silver price chart, you’ll quickly see that it has historically been a lot more volatile than gold. Without a 20 per cent flat rate, investors would be able to treat silver as a short term, low value investment, riding the peaks and troughs of its value on a daily or perhaps hourly basis.

VAT free silver in the real world

Reading this, you’d be tempted to conclude that all is lost and that silver probably isn’t going to be the precious metal for you any time soon.

Luckily, we’ve got options.

The best way to get the maximum potential out of silver is to avoid claiming the physical product altogether. No physical product means no VAT, allowing you to claim profits from the full value by which silver rises over the period you own it.

When you buy silver with us, you can request that the final product is held in storage for the length of time you choose to own it. In a LBMA approved, ‘black box,’ your silver will be safe, protected, and most importantly – tax free.

The product remains fundamentally yours, and you can sell it at whatever time you like for the full value of the contemporary silver price. You can even ask for the product to be delivered if you decide to keep it yourself after all – but of course, VAT will then be payable on the delivered product.

There are a number of similar schemes being run by precious metal companies in the UK and the EU. You’ll notice that they tend to go a little quiet about how the VAT exemption actually works. We’re not pointing any fingers here, but some of them are definitely less legitimate than others - and a lot of them are less legitimate than ours.

VAT free silver opens up a lot of opportunities – for both the investor and the market. But it’s important to make sure we’re all legally watertight in the process. Luckily, we are – so contact us to find out more, or check out our range of VAT Free silver coins and silver bars right here.

If you’re in the mood for buying silver, why not take a look over the brand new 2018 silver Krugerrand – the very first of its kind.

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<![CDATA[2018: Is This the Year Silver Soars?]]> https://www.thegoldbullion.co.uk/blog/2018-is-this-the-year-silver-soars/ https://www.thegoldbullion.co.uk/blog/2018-is-this-the-year-silver-soars/ Wed, 08 Aug 2018 23:00:00 +0000 To say silver has been behaving oddly recently is something of an understatement.

What’s in a ratio?

Watching the ratio between silver and gold is seen by many investors as a good way of predicting whether either is about to experience a sharp spike or drop in price. The logic goes that if one suddenly becomes much more expensive, relative to the other, then a correction should soon occur – creating volatile changes in price.

With silver being the historically more volatile of the two metals, it’s generally silver that jumps or falls. This is precisely why investors are now looking so carefully at this ratio.

The average price ratio between gold and silver so far for 2018 is 79:1 – higher than it’s been at any point since 1993. And since gold has barely moved in price over the last year, it’s most likely that silver is, once again, the real culprit here.

A high ratio means the price of silver, relative to gold, is much lower than it usually is. For this to ‘correct’, either the price of silver will have to rise or the price of gold will dramatically fall. So is silver about to soar?

Silver and gold: historical ratio

There’s an old saying among the precious metal community that the rightful ratio between gold and silver prices is 16:1. Whatever the price of silver is, it would follow that gold should be about 16 times the price.

In reality, that hasn’t been the case for decades. In Sterling, we haven’t seen a ratio lower than 29:1 since before 1980. In fact, the ratio generally sits between 50:1 and 70:1 – a significant amount more than the 16:1 figure that usually gets thrown around.

You can see the ratio of gold to silver between 1980 and 2018 on the chart below:

Ratio of Gold to Silver between 1980 and 2018

Source:  https://www.gold.org/ & https://www.quandl.com/

As you can see, the ratio in 2018 is a lot higher than it usually is. And historically when the ratio has risen in the past, it typically falls once again shortly after.

By no means is this a guarantee. With the Brexit factor, higher geopolitical tensions than we’ve seen in decades, and a whole range of uncertainty in the contemporary financial markets – we’re certainly in uncharted territory here. But if historical data is to be trusted (and we think it is), then silver could well be about to soar.

Silver volatility

But the gold and silver ratio isn’t the only thing that’s out of the ordinary right now. Historically, silver has always been the more volatile of the two precious metals. To avoid delving into complicated facts and figures, the supply and demand of silver tends to be more variable than gold, since it’s used more for non-investment purposes.

The curious thing about silver currently, is that its volatility rates have been much lower over the past few years than has been historically the case.

The following chart maps the average annual volatility of silver since 1968. This is the amount by which the average price changes year on year – not the raw price itself, which you can see over on our silver price charts.

Average Annual volatility of Silver since 1968

Source: https://www.quandl.com/

Average volatility over the last full annual trading period (2017) sat at its lowest point since 2000. So, not only is silver much cheaper compared to gold than it normally is, but its raw price is also moving much less.

What comes next?

There’s every chance that these figures simply mark a long term change in the relationship between gold and silver and the volatility of precious metals. The rules of financial markets are certainly less fixed now than they were before 2008.

But the fact that silver is behaving out of the ordinary by both metrics is raising eyebrows across precious metal markets. It might not explode tomorrow, but there’s every chance that these abnormalities will correct over the next few weeks or months. And if it does, you’ll certainly want to have some precious silver deposits to cash in on.

VAT free silver

Gold bars, bullion and coins are subject to a blanket VAT exemption. Unfortunately, silver is not.

This has been a source of frustration for precious metal investors for some time, as it means the price of silver must rise by at least 20 per cent before any investor can hope to make any returns.

Silver’s historic volatility would otherwise lend itself to a healthy short-term trading market, as investors seek to capitalise on the short-term peaks and troughs in its price. In current trading conditions, this is impossible.

The Gold Bullion Company has recently offered a way around this. Silver which is bought, but not delivered, remains held in a secure, protected LBMA vault, for which VAT remains exempt unless the buyer chooses to have the physical product delivered.

If the silver owner keeps the physical product in the vault for the entire length of ownership, then no VAT will be payable – meaning you can begin to make returns from the entire proportion by which silver appreciates in price.

If a large silver spike is indeed imminent, then this could allow investors to maximise potential returns.

Contact the Gold Bullion Company to find out more.

Check out our full range of silver bars and silver coins if you, like us, think the time is ripe for a silver investment.

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<![CDATA[New Silver Bullion Krugerrand Launches!]]> https://www.thegoldbullion.co.uk/blog/new-silver-bullion-krugerrand-launches/ https://www.thegoldbullion.co.uk/blog/new-silver-bullion-krugerrand-launches/ Thu, 26 Jul 2018 23:00:00 +0000 In 1967, the South African government first issued the gold coin that would go on to become the most traded gold coin in the world: the South African Krugerrand. It was the first of its type anywhere in the world; minted from one troy ounce of fine gold.

To celebrate the 50th annual release of the world-famous gold Krugerrand, the Rand Refinery have expanded their repertoire and introduced the very first silver bullion Krugerrand, minted from one troy ounce of fine silver. Here’s everything you need to know about the updates.

A brief history of the South African Krugerrand

Though other coins like the American Gold Eagle, the Canadian Maple Leaf and the British Britannia have followed in its footsteps, none have quite reached the popularity of the original South African Gold Krugerrand at any point over its 50 year life cycle.

First launched in 1967, the South African government sought to encourage the use of private gold ownership. As one of the world’s largest single manufacturers of gold, it comes as little surprise that South Africa led the trend of one ounce fine gold coin collecting, or even that its version went on to remain the most popular.

The name for the coin was taken from the name of the country’s fifth president, Paul Kruger, together with the name of South Africa’s currency: the Rand.

After an initial flurry of interest in the Krugerrand, it suffered some setbacks in the 70s and 80s as Western Democracies banned imported goods from South Africa in protest of their controversial apartheid policies. Despite this, it remained the world’s most widely traded gold coin.

The 2018 silver Krugerrand

Despite minting the most popular gold coin in the world, the Rand Refinery has until now not followed in the footsteps of The Royal Mint, The United States Mint and The Royal Canadian Mint in issuing a silver variant of its flagship gold coin.

Like the original gold version, the new silver coin features one troy ounce of fine silver. The design is also identical to the gold coin, featuring the image of Paul Kruger on one side and an antelope on the other.

The inscribed images are accompanied by the word ‘Krugerrand’, and ‘fine silver’ on one side, with the latter being written in both English and Afrikaans, the main two languages of South Africa. The words ‘South Africa’ are inscribed on the other side, also in both languages.

The interesting thing about the silver variant is that it will carry an actual face value denomination of 1 rand, unlike the original gold version.

Historical value

As the first silver Krugerrand of its kind, this coin is likely to earn pride of place in plenty of coin collections around the world. That means, as well as being valuable for the worth of its precious metal content, it’ll likely come to have a historical and commemorative value in a few years’ time.

The Rand Refinery plan to issue just 500,000 of these coins. These aren’t a ‘limited edition’ run, and there’s every chance the refinery will choose to continue minting the new silver Krugerrand from 2019. There are however, a limited number of 2018 coins (which will likely become more valuable than later potential variants) – so make sure you get yours soon.

Whether you’re an investor looking to simply harness the potential value of investment silver, or an avid coin collector, there are plenty of tangible benefits to owning this and other silver coins.

Buy your 2018 silver Krugerrands here

The silver Krugerrand is set to be released in the next few weeks, and there’s certainly a lot of buzz happening around the market as it awaits their delivery.

If you’re looking to get your hands on one of these coins before they all run out – then you’ve certainly come to the right place, because it’s currently available to pre-order on our website.

The market price changes depending on the live price of silver – but once you’ve pre-ordered your version, we’ll lock in the price at the time of buying. That means if the price changes between now and delivery date, you’ll still only pay the originally quoted price.

Have a look over our entire range of Krugerrands right here, or check out other silver coins in our collection.

 

This blog represents one person’s opinion only. Customers should conduct their own research and take advice before making an investment. We do not offer investment advice.

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<![CDATA[Brexit and the Gold Price]]> https://www.thegoldbullion.co.uk/blog/brexit-and-the-gold-price/ https://www.thegoldbullion.co.uk/blog/brexit-and-the-gold-price/ Wed, 18 Jul 2018 23:00:00 +0000 If you’ve been paying any attention to the gold price over the last few months, you’d probably be pretty disappointed. Not because gold is performing badly, per se, but because it’s not really doing much of anything at all.

At this point, a cursory glance at a gold price chart might convince the average investor or speculator to cash in their gold supplies and call it a day. But despite the lack of any tangible change in the gold price for some weeks, we think that’d be a pretty short sighted conclusion.

In fact, this period of low volatility might just work out in favour of those who buy gold bullion, bars and coins. Here’s why.

Gold price volatility

Back at the height of the Kim Jong-Un and Donald Trump ‘to summit or not to summit’ drama, we wrote about the changing effects of geopolitics on the gold price. We’re living in one of the most politically volatile periods in most people’s living memory – so you’d expect gold to be making headlines everywhere.

The last time the gold price rose significantly in value was after the 2016 Brexit referendum. It settled over the coming months and has been largely steady for what is now the best part of a year. There was some brief action in December at the conclusion of stage 1 negotiations, then back once again to the new status quo.

As much as we’re all tired of hearing about it, Brexit remains the political and economic issue of the day. For over two years now, we’ve braced ourselves for what will be, for better or worse, a totemic turning point in our political and economic history. Until we get a clearer picture of where the country’s heading after 2019, gold is likely to remain exactly where it is.

A weekend at Chequers

Last weekend saw the revelation of what, for the first time, actually seems to resemble a plan. The last two years has been full of dithering aplenty from both the government and the opposition. Whatever your views on this deal (and passions are certainly running high), it’s certainly nice to finally get some clarity.

As more clarity emerges from the Brexit negotiations, we’d expect the gold price to steadily start to get moving again. In reality, we still don’t know whether Brexit will end up being an economic disaster, or whether we’ll basically be okay.

If we get a reasonable deal and everyone moves on with their lives, there’s a good chance that gold will return to pre-2016 levels of volatility. If, as is very possible, the deal is rejected by either parliament or the EU, we could well be looking at profound economic distress for the UK in a short space of time. And nothing makes the gold price rise like economic distress.

Whichever way we head, the Brexit deadlock is loosening. There’s a good chance that gold will soon move back to volatility levels that we haven’t seen for over a year. And when it does, you’re going to want to be ready.

Gold vs. shares

Investors who put most of their portfolio in stocks and shares have a tendency to look onto precious metals with scepticism. And when gold flatlines, it’s difficult to argue. You’re not going to make large returns day trading with gold. You’re probably not going to make Bitcoin style fortunes with gold any time soon. But plenty of stock market investors insist on having a chunk of their portfolio in gold – whatever the current trading gold price.

Gold remains a popular investment commodity, not because you’re going to make big returns on it tomorrow – but because it’s a reliable hedge. When the price of your cash currency, stocks or real estate assets plummet, you can nearly always rely on gold to move in the opposite direction.

Today, gold remains cheaper than it was at the height of the initial Brexit hysteria, and there’s a good chance it’ll rise again as the situation develops. If ever there was a good time to get some gold for the rainy day fund, this would be it.

Buy gold bullion and postal bullion right here.

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<![CDATA[The Gold Market Quarterly Update]]> https://www.thegoldbullion.co.uk/blog/the-gold-market-quarterly-update/ https://www.thegoldbullion.co.uk/blog/the-gold-market-quarterly-update/ Thu, 28 Jun 2018 23:00:00 +0000 In a period of intense geopolitical upheaval, the gold market has experienced a level of volatility over the last three months that’s been unseen for some time. After the imposition of President Trump’s steel and aluminium tariffs on the EU, China, Canada, Mexico and others, as well as the continuing tensions and developments in North Korean relations – the gold price has certainly experienced some turmoil over the last three months.

Gold opened the period on April’s first day of trade at £949.65. By the end of June, the gold price experienced highs of £983.83 and lows of £937.24, and ended, at the time of writing, at an almost identical price to where it started at £949.53.

Early dollar uncertainty

Gold deteriorated in value quickly after the beginning of the month, against an unexpected surge in the value of the dollar and resulting confidence in the strength of the American economy. The month’s opening price of £949.65 was itself a retreat on higher prices at the end of March, and the value continued to sink to £944.18 on the 12th April, for similar reasons. The lowest spot price anywhere between April and June was recorded in the first half of April, when, on the 17th, it fell to £937.24.

Tensions in North Korea

North Korea has dominated the gold price headlines and other precious metals news for months, and this period is no different. With increasing confusion as to whether de-nuclearisation talks with United States President Donald Trump were set to occur, many conflicting letters to and from and, finally, a summit – there’s certainly been some ups and downs.

The effect of these circumstances on the gold price in May was actually somewhat less than was expected. Nonetheless, North Korean events nudged the price up from its lows towards the end of April, which then eased once again to £955.09 on the final day of April.

Continued strong performance of the American economy caused sterling to become cheaper in relation to the dollar through the rest of May, which raised the price of gold relative to sterling. Gold therefore hit highs of almost £970 on both the 4th and 10th of May.

Turmoil in Italy

By the end of May, headlines around the world were dominated by news of the chaos in Italy as political parties struggled to assemble a coalition after a fractious and bitter election some months ago.  After dipping on the 17th to £952.07, prices continued to rise again through May to £978.41 on the 25th May and the highest figure seen across all three months, £983.83 on the 29th May.

This followed ‘heavy selling’ across European financial markets in response to the Italian crisis, which reportedly had investors fearing a snap re-election in Italy. The upcoming no-confidence vote in Spanish Prime Minister Mariano Rajoy, which he went on to lose, also bolstered gold during this period.

Trump tariffs

Prices fell over the beginning of June as tensions eased. Gold had a brief surge on the 14th, when the European Central Bank announced its plans to maintain interest rates at the same level. On the same day, silver reached a two-month peak against the dollar.

Things were to change the very next day however, when a host of investors sold up supplies of the commodity simultaneously, causing a one-day change in value from £977.71 on the 14th June to £968.69 on the 15th.

Investors bought gold expecting the price to rise after both the imposition of the Trump tariffs (which affected the price less than expected) and the expected rise of European interest rates (which didn’t happen). Mass simultaneous liquidation of assets thus quickly suppressed the gold price.

From this low point of £968.69, prices continued to fall through the remainder of June, as the American economy, the dollar, and equities steadily recovered from the shock that the tariffs had caused. As we approach the end of June, the price is now hovering around £950.

Buy gold bullion

As one of the most reliable and cost effective UK gold companies available, at the Gold Bullion Company we update our prices automatically based on the live gold price. So if you’re looking to buy gold bars or buy gold coins, you can be sure to take advantage of the fluctuations in gold price when you buy from us.

Still considering where to buy gold? Check out our full range of postal bullion options right here.

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<![CDATA[Buy Gold Bullion Coins - But Which Ones?]]> https://www.thegoldbullion.co.uk/blog/buy-gold-bullion-coins-but-which-ones/ https://www.thegoldbullion.co.uk/blog/buy-gold-bullion-coins-but-which-ones/ Tue, 19 Jun 2018 23:00:00 +0000 If you pay attention to our blog regularly, you’ll probably hear us waxing lyrical at some length about the many benefits when you buy gold bullion coins. And rightfully so - many people in investment communities consider gold a reliable hedge against inflation and economic uncertainty. That being said, there’s a whole load of reasons why people choose to buy gold bullion coins – and it’s not always immediately clear where to buy gold or which coins are best for your interests and requirements.

So here are a few ideas to get you started.

Coin collectors

If you’ve got no interest in gold’s investment potential whatsoever, and you just want to build a gold coin collection you can admire – then the changing fortunes of the gold price probably aren’t going to affect you all that much other than to help you determine when is the best time to buy gold. So really, you should just buy whatever gold coins you want within your budget.

That being said, there’s a whole bunch of different gold coins out there, so it is worth narrowing things down a bit. If you’re interested in the evolution of our currency, you might want to look at historical gold coins and focus on what’s on offer here rather than among the more recent commemorative releases.

If you’re interested in celebrating aspects of British culture, like the Royal Family for instance, then more recent variants like the Queen’s Beast series of commemorative gold coins could be exactly what you’re looking for.

The Queen’s Beast series are actually one range of coins that we’ve seen huge levels of demand for. The original first sales of the older releases from this commemorative range are already gone and demand has started to push the price up. Will we see the same thing play out with the most recent release, the Black Bull of Clarence? Watch this space.

Investors

What if you’re just not that interested in the historic or commemorative value of a gold coin and, truth be told, you just want to make returns on your investment?

Many people will think that historical coinage is the best way to do this – we often hear stories about old coins that used to be next to worthless being cashed in for a profit many years later. But in actual fact, this is quite a rare occurrence.

Sure, some historical coins rise significantly in value – but that’s generally more due to scarcity and somewhat unpredictable demand rather than their age. But it takes decades for a historical premium to rise enough to justify the initial purchase, and the added factor of rarity is highly unpredictable.

You can buy a gold coin and sit on it with the hope that you’ll be holding one of the few remaining coins of that series in 50 years’ time and suddenly collectors everywhere will be desperate to get their hands on your coin. But it’s something of a hit or miss strategy.

Here’s an alternative that’s more likely to offer reliable returns on your investment. Look for a gold coin with the smallest possible premiums over the gold spot price.

By buying gold coins for the direct value of their gold content, measured by the live gold price, you’ll be looking at a more sensible and reliable investment strategy. To coin a phrase - a gold coin will always be worth its weight in gold, while its historical and rarity values are far less dependable and quantifiable.

Gold coin investors will do well to look to world-renowned gold coins like the gold Britannia, or gold Sovereign (the value and purity of which can never be in doubt). In fact, the secondary gold market, where premiums are smallest, could well be the right purchase for you to get hold of gold coins at a great price.

A bit of both

Let’s be honest, most people buy gold coins for a bit of both: the thrill of holding a piece of history and the financial reassurance that only solid gold can bring. Perhaps you’re a collector with an interest in coins for their historical and commemorative value, but chances are you’d be pretty happy to see your collection fetch a nice addition to your pension in 30 years or so.

If you’re a particular history buff, then old gold coins will certainly have their appeal to complete your collections. But generally, building up a recent collection of gold coins, be it the Queen’s Beast coin series, or commemorative gold Sovereigns, will be an easier way of combining the benefits of both styles of gold coin ownership.

Best UK gold companies

If you’re looking to buy bullion by post, whether it’s gold coins or gold bars, there are certainly a wide range of places you can look. For the best price for your gold, however, you’re going to want to find a company that charges the lowest premiums above the spot gold price.

Luckily, the prices on the Gold Bullion Company website, whether for gold bars or gold coins, are automatically updated based on the gold price. So whether you’re building up a Victorian gold Sovereign collection, or planning a retirement fund – you’ll know where to go next time you want to buy gold coins.

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<![CDATA[So What Did Kim Jong-un Just Do to the Gold Price?]]> https://www.thegoldbullion.co.uk/blog/so-what-did-kim-jong-un-just-do-to-the-gold-price/ https://www.thegoldbullion.co.uk/blog/so-what-did-kim-jong-un-just-do-to-the-gold-price/ Mon, 28 May 2018 23:00:00 +0000 We’ve done a lot of gold price updates over the last year. And that ever-infamous despot Kim Jong-un has a nasty habit of appearing in pretty much every one of them. Why’s that, you might ask? Well, what happens on the other side of the world doesn’t tend to stay there – and it has a big effect on the gold price back here at home.

And as far as big events around the world go, North Korea tends to take the biscuit.

In pretty much every circumstance, if North Korea does something that threatens global stability, there’s a sharp jump in the gold price.

In the last month or two, we’ve experienced both historic peace talks and threatening language between the two countries on the Korean peninsula, and we’ve seen evidence that a meeting between Kim Jong-un and President Trump is either ‘uncertain’ or ‘imminent’ - depending on the day.

So logic would dictate that this May has been one of gold’s most volatile on record.

Well, it just so turns out that it really hasn’t. In fact, in pretty much all of these instances, the opposite of what we expected to happen eventually occurred. So what’s happened to the Kim Jong-un effect on gold?

Politics’ influence on the gold price

Rule one of the gold price is when bad things happen around the world, gold gets more expensive. That’s because gold is a trusted, safe-haven commodity. When things look uncertain, both financially and politically, demand for gold rises.

And what are the biggest examples of that? Look at a gold price chart – you’ll see sharp jumps after the 2008 financial crisis, during the crisis in the Eurozone of 2012 and after the result of the Brexit referendum in 2016.

But strangely, in a month where we’ve seen such profound political developments, the rules seem to have changed somewhat.

What happened to the gold price this month?

The historic peace talks we discussed earlier occurred on the 27th April, just over a month ago. Where such a sign of peace would usually depress the gold price, we instead saw barely any movement at all. In fact, it took four days for gold to substantially change – by which time it’s likely that other factors had far more direct an influence on its value.

That was probably the most conciliatory moment we’ve seen since between the two Korean nations, and tensions have since risen once again. To boot, the prospect of US peace talks with Korea seems increasingly uncertain. So, in quite the opposite way to before, you’d expect gold prices to steadily rise again over the course of the month. Has that happened? Well not really.

In fact, gold even experienced one of its most dramatic two-day falls of the year so far, losing 1.4 per cent of its morning spot value between the 14th and 16th of this month. If that wasn’t all confusing enough already, it happened right after one of the most profound geopolitical disasters of the month, the Israeli attack on Palestine.

So have the rules changed?

Before we all go crazy and start selling gold – let’s just take a moment to consider why this could be. After all, markets are complicated, and black and white narratives are never as easy as they seem.

The chances are the tried and tested methods of predicting the gold price remain largely dependable. We certainly can’t assume that gold has suddenly reversed a centuries-old correlation based on one month’s data.

In fact, there’s a combination of two main factors most likely to be causing this change.

  1. Firstly, there’s a good chance that other factors are having more profound an effect on the gold price than geopolitical ones. In particular, the developments in the US economy seem to be having growing influence, and could be simply doing a better job of pulling gold in the opposite direction than any geopolitical uncertainty.
  2. The second is more an argument of perspective. With chaos seeming to reign ever-supreme in the geopolitical world, there’s a good chance that investors just simply don’t know what to make of what’s going on anymore. When contradictory reports and suspicions come out of Washington and Pyongyang every other week, it’s no wonder the effect of these reports on the gold price is dampening.

Should you still buy gold?!

We think there are just as many reasons to buy gold as there ever were. But if you’re looking to which factors are a most reliable gauge of the future gold price – it seems that the American economy is increasingly taking centre stage over the geopolitical scene. In the months following one of the most profound tax reforms in US economic history, this hardly seems surprising.

Nonetheless, it’ll certainly be interesting to see how the markets develop over the coming months. Is the effect of geopolitical turmoil over, or will it simply take a little more than transpacific squabbling for it to materialise? Only time will tell.

In the meantime, make sure you stock up on your gold bars and gold coins.

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<![CDATA[The Black Bull of Clarence: The Latest Royal Mint Gold Bullion Coin]]> https://www.thegoldbullion.co.uk/blog/the-black-bull-of-clarence-the-latest-royal-mint-gold-bullion-coin/ https://www.thegoldbullion.co.uk/blog/the-black-bull-of-clarence-the-latest-royal-mint-gold-bullion-coin/ Tue, 15 May 2018 23:00:00 +0000 Released just weeks ago, the Black Bull of Clarence gold coin is now available to buy. It’s the latest in a range of Royal Mint bullion coins called ‘The Queen’s Beasts’. The Black Bull is the fifth coin to be released in the series, which seeks to commemorate all 10 of the statues present at the Queen’s coronation.

Looking to start building your Queen’s Beast gold coin collection? Here’s everything you need to know.

The Queen’s Beasts

The original 10 Queen’s Beasts statues were commissioned especially for the Queen’s coronation in 1953, and constituted an impressive work of sculpting achievement. Each standing at around six feet high, they commemorated important heraldic symbols from Queen Elizabeth’s ancestry. Particularly well known examples of these symbols include the Unicorn of Scotland and the Red Dragon of Wales.

The statues, while still in existence, have since been donated to the Canadian Museum of History in Quebec. So, chances are you won’t be catching sight of the originals any time soon. But luckily, the Royal Mint’s bullion coin series commemorates the historic symbols as silver and gold coins.

The Black Bull of Clarence

The Black Bull of Clarence is one of the less well known symbols of the British monarchy. And indeed, compared to something as well-known as the English Lion, it fits in a somewhat more niche place in English history.

The Black Bull was first chosen as a royal symbol of King Edward VI, after his ascension to the English throne in 1461. He was the first Yorkist monarch, and one of the early figures of the infamous Wars of the Roses. It isn’t entirely known why the black bull was chosen as the heraldic symbol of Edward IV, or why it so quickly fell out of use in the years afterwards.

But one thing’s for sure – it was important and memorable enough as a symbol of this tumultuous period of British history to be commemorated almost 500 years later at the coronation of Edward’s descendant, Queen Elizabeth II.

The whole Royal Mint bullion coin series

Of course, no commemorative gold coin from the Royal Mint would be complete without… well another nine to go with it! Whether you’re a gold coin collector looking to get the full series, or a gold investor looking to get the maximum collector’s premium on the eventual sale of your gold – everyone loves having a completed series.

The Black Bull of Clarence marks the fifth gold coin in The Queen’s Beast series, of which the final is set to be released in November 2020. Each gold coin has a face value of £100 – but make sure you don’t actually sell it for that much, since it’s almost a tenth of the current trading value of its equivalent gold content.

The standard gold coin contains one troy ounce of 24 karat gold, a figure which remains consistent throughout the different editions in the series. The Royal Mint also mints ¼ ounce gold coins, as well as 10 ounce and 2 ounce silver coins for each variant of the Queen’s Beast. More recently, a one ounce platinum coin has also been released for later editions.

Here’s a quick look at the other coins in the series so far:

The Lion of England

That ever famous mascot of England was the first to kick off the series back in March 2016. Closely associated with English bravery, it was first seen on a shield that was given to Geoffrey Plantagenet upon Henri I’s marriage to his daughter.

The Griffin of Edward III

The Griffin of Edward III was (no surprise here), the emblem of Edward III, who ruled the country for a notable period of time between 1327 and 1377. It is considered a symbol of courage, strength and vigilance.

The Red Dragon of Wales

In old Welsh folklore, the red dragon was considered to have been the emblem of King Arthur himself. Whether that’s true or not is anyone’s guess – but it’s certainly earned itself pride of place as the Welsh national symbol since then.

The Unicorn of Scotland

The national emblem of Scotland, the unicorn, is slightly lesser known than its counterparts the English lion and the Welsh dragon. Despite that, it’s been a hallmark of Scotland royal history since its first use by William I in the 1100s.

Buy gold coins from the Gold Bullion Company

As well as the brand new Black Bull of Clarence, we also have three other Royal Mint gold bullion gold coins from the Queen’s Beast series in our current collection, the Unicorn and the Dragon in gold, and the Unicorn once again in silver. These coins are immensely popular offerings from the Royal Mint – so make sure you keep a careful eye on our full selection of British gold coins for updates on when the latest coins in the series are released.

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<![CDATA[What is Gold 375?]]> https://www.thegoldbullion.co.uk/blog/what-is-gold-375/ https://www.thegoldbullion.co.uk/blog/what-is-gold-375/ Thu, 26 Apr 2018 23:00:00 +0000 Everyone, whether they’re looking to buy gold or sell gold, can benefit from understanding the answer to the question ‘what is gold 375?’. Whether you’re interested in gold bars, gold coins or gold jewellery, it’s important to know what the true value of an investment is.

As well as the live market gold price, the weight and purity of your gold will determine how much it is worth. There’s a good chance that your gold product will be inscribed with a hallmark to prove its purity, and thus give you a clue how much it could be worth. This is where the 375 comes in.

To fully understand what gold 375 is you need to understand what gold hallmarks are and why they’re important. ‘375’ gold is just one of many different types of hallmarks. Here’s a closer look.

What is gold 375?

If a gold product contains the hallmark ‘375’, that means your gold is 9 karat – or 37.5 per cent pure. The remaining 62.5 per cent of the product is an alloy of different metals, like nickel, copper, or in some cases silver. But in general the other metals used will not be high value.

Thus, when buying or selling gold products the live gold price is applied to the equivalent weight of gold, rather than the overall weight of your product. For example, if the spot price of gold was £950 per troy ounce, and you have one ounce of 9 karat gold, your gold would be roughly worth £356.25.

Why is gold hallmarked?

Buyers and sellers in the gold market need to quickly be able to determine what purity a gold product is, preferably without having to test it. This is where hallmarking comes in.

In Britain, it is a legal requirement for products claiming to include precious metals to be independently assessed and ‘hallmarked’ to prove their purity. In simple terms, a hallmark is a design, writing or pattern that’s etched into the metal itself in order to prove its constituent value.

Traditionally, this has been struck with a punch, but nowadays it tends to be applied by laser.

What hallmarks are legally required?

All precious metals bought and sold in the UK must be ‘assayed’ by one of four offices in the UK. This refers to the process by which gold purity is assessed and a hallmark recorded.

Currently there are three types of hallmarks that are compulsory on sales of all precious metals.

1. The sponsor’s mark

This hallmark is, in short terms, the company that’s selling. More specifically, it is the organisation, be it manufacturer, importer, wholesaler, retailer or an individual who is responsible for selling the gold to be ‘assayed’.

To get your own unique sponsor’s mark, you should register with one of the four British Assay Offices.

2. Precious metal purity

You’ll be able to recognise this one fairly quickly – because it’ll be a three digit number. In some instances, you’ll find it with a decimal point afterwards, depending on the purity of the metal in question.

In this instance, precious metal purity is measured in ‘parts per thousand’. Each number is therefore a fraction of the one thousand, representing the total proportion of precious metal within.

A 750 marking on a gold bar, for instance, is 18 karat gold, roughly 75 per cent pure. 916 is roughly 91.6 per cent pure, constituting 22 karat gold, and so on.

The one that most investors will be interested in is that elusive 999 figure – which is among the purest metal you’re likely to find anywhere. Any figure over 990, or 99 per cent, will be considered 24 karat – though there are variations within the last tiny one per cent.

Most of the precious metal bars on our website are marked at 999.9 purity, making them 99.99 per cent pure. This is the minimum standard at which gold bullion can be considered ‘fine gold’.

3. The Assay Office mark

The final compulsory image you’re likely to find on a gold product is the logo of the Assay Office at which its purity was assessed. As previously mentioned, there are four of these in the UK, in London, Birmingham, Sheffield and Edinburgh.

What’s the highest gold hallmark?

The purest gold ever known to have been recorded goes up to 999.999 purity, or 99.9999 per cent – which was produced by the Perth Mint in 1957 and assayed by the Worshipful Company of Goldsmiths in London. You’re unlikely to find that on any hallmark any time soon however, since it’s never been commercially released.

Instead, the purest commercially released gold was minted by the Royal Canadian Mint, at 99.999 per cent pure. Special commemorative versions of their well-known Maple Leaf gold coin are minted to this purity.

Gold bullion products you can trust

If you’re looking to buy gold bars and buy gold coins, whether for investment, trading or commemorative purposes, you’ll want to ensure that your gold adheres to these standards. That’s because when you come to sell the gold you’ll need to be able to verify its purity and other credentials in order to demand the best possible price.

When you make your gold investment with the Gold Bullion Company, you can rest assured that we only deal in gold that has been officially hallmarked.

Browse through our entire collection of gold and silver products today and find a purchase that fits your requirements.

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<![CDATA[India's Plans to Reform the Gold Market and What They Could Mean for You]]> https://www.thegoldbullion.co.uk/blog/india-s-plans-to-reform-the-gold-market-and-what-they-could-mean-for-you/ https://www.thegoldbullion.co.uk/blog/india-s-plans-to-reform-the-gold-market-and-what-they-could-mean-for-you/ Wed, 18 Apr 2018 23:00:00 +0000 We’ve mentioned the Indian gold market a few times in this blog – as the world’s largest single consumer of gold, there’s plenty here to talk about. We’ve explained why the commodity is so important to the Indian festivals of Diwali and Akshaya Tritiya, and looked into a recent phenomenon of increasing sales in the rural Indian gold market.

Whenever we look at the gold market in India, we’re presented with a recurring theme – that gold sales have been less than expected over the past few years, and that things are steadily starting to change.

We reckon that the pace of change is about to increase. Recently, the Indian government signalled wide ranging proposals intended to improve the incomes of rural India and make it easier for those people to buy gold. In response, the World Gold Council (WGC) released a wide ranging report that looks into the potential effects of these reforms.

We’ve had a trawl through the information, so you don’t have to, and brought together all the essential points to keep track of the effect these proposals could have on the gold price.

Gold in India – The lowdown

Despite India’s strong cultural attachment to gold, the state itself hasn’t always had the smoothest relationship with the commodity. Things may be improving now, but once upon a time, possessing gold was actually illegal. That’s right, almost immediately after achieving independence in the 1940s, the Indian government banned gold ownership and manufacturing.

In the latter decades of the 20th century, these policies were gradually whittled down. An outright ban on gold ownership eventually became a cap, and eventually manufacturing of gold 14 karats and below became permitted. Between the 60s and 90s there seemed to be at least tacit movement towards a more liberal gold market.

Unfortunately, governments over the last decade have taken a stark U-turn. In 2012, gold import duties were increased from 2 per cent to 10 per cent. The following year, the government mandated that there had to be at least an 80:20 ratio of gold bullion to gold jewellery imported, creating a significantly distorted supply chain. It’s safe to say that these policies have had a significant impact on the price of gold in India. 

India’s latest budget

Luckily, the Indian government have now signalled that things are about to change once again – this time we hope for the better. On the 1st February, the government delivered its Union Budget, which showed a significant change in tone. Though no concrete policies were announced, the Finance Minister Arun Jaitley signalled that the government was exploring new proposals for the way gold is treated in the country.

Here’s a look at the three main proposals that were unveiled as part of this latest budget:

Even to those of you familiar with the gold market, there’s a good chance that this all seems like technocratic jargon. But there are some quite important nuances in this seemingly political verbosity – so buckle up for a moment while we get technical.

The most eye-catching policy here is the proposal to develop gold as its own asset class. What that essentially means is that both the government and the country’s financial institutions will begin to recognise gold as an asset in its own right.

Gold can therefore start to be considered a form of wealth in the same way as currency, stocks, bonds or real estate, rather than a shiny lump of rock that happens to be valuable. The distinction is important, because it means the government can start to build joined-up policy making and gold can start being traded to its full potential across the country.

Even in its days of more liberal attitudes to gold – India has always suffered from slightly disjointed gold market policies. The promise to ‘enfranchise’ gold as a legal asset and create an integrated system of policies to encourage the trade of it is perhaps one of the brightest signals for reform in the Indian gold market over the past decade.

So why should you care?

Good question. India likes gold. In fact, according to the WGC report, about a fifth of the world’s gold exchanges take place in India – and that’s even with the country’s current restrictive gold policies. So if more people start buying and selling gold in India, we could well see a big impact on supply and demand around the rest of the world.

In fact, this effect is so profound that the WGC estimates that a 1 per cent increase in income across India leads to, on average, a like for like 1 per cent increase in demand for gold worldwide. That’s a pretty impressive rate of influence over a global market for any one country to have.  

Rising living standards

As well as showing promising signs of liberalising the gold market, the Indian government have also pledged to double farmers’ income by 2022. What does this have to do with gold? Listen up.

The rural economy is a pretty important part of India’s overall gold market – it accounts for about two thirds of it in fact, according to the WGC report. Some back-of-the-envelope calculations would suggest therefore that about 13 per cent of the world’s gold is purchased in rural India.

We all know not to take politician’s policies too seriously – but if the Indian government even come close to their pledge of doubling farmers’ wages and revolutionising the overall rural economy – there’s a good chance we’re going to see rising demand for gold in India over the coming years. Couple that with a liberalised market, and that one fifth of global gold trades could well become a lot bigger.

With rising demand comes inflated prices and thus, the value of your gold bars or gold coins could be set to rise. Check out our range of gold bullion today if you want to get ahead of the curve.

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<![CDATA[March Gold Price Update]]> https://www.thegoldbullion.co.uk/blog/march-gold-price-update/ https://www.thegoldbullion.co.uk/blog/march-gold-price-update/ Mon, 02 Apr 2018 23:00:00 +0000 After months of speculation, the US Federal Reserve raised interest rates from 1.5 per cent to 1.75 on the 21st March. Suspicion of this oncoming hike has defined the gold market for the best part of the last six months, with gold’s recent low price inflation being partly attributed to it.

On the 1st March, the gold price opened at a trading value of £953.80, slightly up on February’s closing gold price. After a brief hike in the month’s opening week, the price dropped through the rest of March, before rising in the final ten days. On the 30th March, gold’s closing price was £945.69; a slight dip on the month’s opening gold price.

Donald Trump and North Korea

The gold price inflated notably in the opening week of the month, peaking at the month’s highest recorded rate of £960.07 on the 7th March. As President Trump announced his intention to push ahead with proposed trade tariffs against China, investors began to fear an escalating trade war between the two nations, and flocked to gold as a safe haven. Trump’s proposal to meet North Korean leader Kim Jong-un further bolstered this effect.

Federal Reserve rates

The American Economy has a big impact on the gold price. In the days leading up to the Federal Reserve’s meeting, gold eased off on its earlier heights, dropping to £950.66 on the 12th, and even further to the month’s lowest recorded price of £934.59 on the 19th. Fears of the upcoming interest rate rise likely contributed to this.

Despite this, gold began to rebound on this low price once the official decision had finally been announced. As has often been the case with previous rate hikes, fears of a hike tend to weigh down on the gold price, which then rises once a hike has been confirmed. The continuing fears of a US-China trade war contributed to this effect.

Despite the fears of this rate hike having weighed down on gold recently, there’s strong evidence to suggest that the price will begin to look firmer now investors have certainty. Stay tuned to this gold blog and our live gold price updates over the coming months to find out more about these market developments.

If you want to make the most of market swings, then why not buy gold bars or gold coins and create or expand your own gold investment today? Take a look over our whole range to find out more.

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<![CDATA[Is Gold Making a Currency Comeback?]]> https://www.thegoldbullion.co.uk/blog/is-gold-making-a-currency-comeback/ https://www.thegoldbullion.co.uk/blog/is-gold-making-a-currency-comeback/ Thu, 22 Mar 2018 00:00:00 +0000 In 1931, the UK abandoned the gold standard. The system, which had for over a century pegged the value of £1 to 7.98 grams of 22-karat gold, was now over – and people were free to buy and sell sterling for whatever value they thought it was worth.

Since then, gold has ceased to be used in conventional currency, but as of the last few months – it could be making a comeback as an alternative currency.

Glint Pay

Glint Pay is a new start-up business, with an app that lets you pay for products using gold. In many ways, it’s similar to paying with Bitcoin, or other alternative digital currencies that have sprung up over the last few years. It allows customers to buy a certain amount of ‘credit’ on the app – which is redeemable for a physical quantity of gold, held in a Swiss vault.

With the rise of cryptocurrencies, it’s clear that there’s an interest and a desire for alternative digital spending options. The problem is, however, that Bitcoin and others are too volatile to be reliably used as spending currency – at least for now. Glint Pay seeks to offer the stability of gold and the convenience of a digital currency – giving contemporary consumers a modern spin on the gold standard.

The people behind the Glint app aim to reintroduce gold as spending currency. And the reason they’re sure it’ll be a success, is because gold is, in their words, “independent and incorruptible; its value is recognised everywhere.”

Will gold make a currency comeback?

Even if this start-up initiative proves to be a phenomenal success, we’re still likely to be using fiat currency for some time yet. However, it does speak to a wider uncertainty and distrust of modern fiat currencies, with their high inflation rates and risk of rising interest rates.

There’s a reason currencies used to peg themselves to the value of gold – and that’s because the commodity has an impressive ability to hold its value against deflating currencies. That’s why in times of economic and political uncertainty, gold’s value almost always rises markedly.

Another way you can get these benefits from gold is of course through buying the physical commodity – gold bars and gold coins. That way, you can secure your wealth against inflation and don’t have to rely on the redeemable commodity being held by someone else.

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<![CDATA[What does Akshaya Tritiya Mean for the Gold Market?]]> https://www.thegoldbullion.co.uk/blog/what-does-akshaya-tritiya-mean-for-the-gold-market/ https://www.thegoldbullion.co.uk/blog/what-does-akshaya-tritiya-mean-for-the-gold-market/ Wed, 14 Mar 2018 00:00:00 +0000 Akshaya Tritiya is one of the most important events in the Hindi religious calendar, and will be celebrated in just a few weeks’ time on the 18th April. Like with many Hindu festivals – gold will feature prominently, with gifts of gold coins, gold bars and jewellery being an important part of the annual festivities. And since India is the gold market’s single biggest customer, large events in the Hindu calendar like this can have important ramifications for the overall market.

Whether you’re looking for the best time to buy gold for your friends and family this Akshaya Tritiya, or are simply interested in how you can take best advantage of wider fluctuations in the gold market – it’s a good idea to get clued up on what this festival means for gold.

What is Akshaya Tritiya?

To those of us not familiar with Hindu traditions, Akshaya Tritiya might sound like quite an unfamiliar concept. In many ways however, it’s very similar to our own Western spring solstice celebration: Easter. While the religious stories that inspired the two celebrations are different, they have much in common. Both festivals celebrate the spring, and place a lot of cultural emphasis on new life and renewal, amongst their respective religious rituals. Both festivals change the precise date on which they’re celebrated each year, according to the phases of the moon, and the Hindu calendar, respectively.

There are many different religious stories associated with Akshaya Tritiya. The most prominent of these features Kuchela, the childhood friend of a King, Krishna. As the story goes, Kuchela one day fell upon financial hardship, and set out to locate his old friend the King, bringing with him a small packet of rice as a gift for his friend.

Upon reaching the King, where he was warmly welcomed, he was shocked by all the wonders and luxury that surrounded him – so much so that he couldn’t bring himself to give his own humble gift. But the King spotted the gift and was delighted. Kuchela was so relieved that he forgot to ask for the financial help he’d come all this way for.

As he walked home from his journey, Kuchela remembered what he’d forgotten - and suddenly worried about how he’d tell his family about the failure. By the time he’d gotten home however, the problem was solved: he found his humble family home transformed into a palace every bit as luxurious the King’s he’d just left and his family living a life of luxury. He realised that this was a gift from the gods, as reward for the humble gift he’d offered to a richer man in his time of poverty.

According to Hindu custom, the day that Kuchela and the King met has been celebrated as Akshaya Tritiya ever since. This spirit of gift giving is important to the celebrations – and nowhere is it more apparent than in the gift of gold.

What does this mean for gold?

This year, the festival will be celebrated just a few weeks after our own Easter celebrations – and it looks set to be a big day in the gold calendar. Back in September, we talked about how valuable gold is in the Hindu religion during the festival of Diwali. Well Akshaya Tritiya is no different – and is considered a favourable day to buy gold.

‘Akshaya’ itself translates as something that is ‘eternal’, or ‘cannot be destroyed’ – which in itself is a pretty fantastic description of the reasons why gold is so valuable to Hindu communities.

In short, Akshaya Tritiya is a big day for the gold market – both in India and back here in the UK. Around this time of year, gold merchants often release new ranges of gold jewellery and gold coins; the latter of which may feature specifically Hindu iconography to celebrate the day.

What are the best gold coins and bars to buy this Akshaya Tritiya?

For those of you out there looking to commemorate the ancient Hindu culture and traditions this Akshaya Tritiya, you can take advantage of this auspicious time to buy gold.

PAMP Suisse offers a particularly interesting range that many people look to around spring. This gold bar, for instance, features the goddess Lakshmi inscribed onto the surface of the 99.99 per cent pure gold bar. It comes in variations of 5 grams, 10 grams and one ounce.

This is just one in a range of faith related gold bars by PAMP Suisse, which features icons from Christianity and Islam as well as the Hindu religion. For those celebrating Easter, this Christian cross etched on a gold bar will be a fantastic gift – and is available in many different sizes.

Making the most of your gold investment

Due to the high levels of demand for gold at this time of year, there’s a good chance that we’ll start to see fluctuations in the gold price in the days and weeks leading up to the main event. For that reason, if you’re looking to buy gold for the Akshaya Tritiya celebrations – it could well be a good idea to do so in advance.

To get more updates on important developments in the gold market like this, stay tuned to our gold news articles right here. Alternatively, find out more about your own gold investment strategy by looking through our range of gold bars and gold coins.

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<![CDATA[Essential Gold Market Update - February 2018]]> https://www.thegoldbullion.co.uk/blog/essential-gold-market-update-february-2018/ https://www.thegoldbullion.co.uk/blog/essential-gold-market-update-february-2018/ Wed, 07 Mar 2018 00:00:00 +0000 February’s gold price saw modest improvements, but was most notable for its lack of volatility over the four-week period. Over the course of the month, the gold price rose from £944.44 to £954.01, an overall increase of 1.01 per cent over the 28-day period.

Once again the month demonstrated that the gold market remains firm and stable against a wide range of factors that could otherwise depress it. Here’s a roundup of what happened to the gold price in February.

A strong start to the month

Prices rose in the first days of February, from an opening of £944.44 to £959.67 on the 6th.  The month began by continuing January’s trend of subdued gold prices, as the ongoing speculation of a rise in US Federal Reserve interest rates weighed on the precious metal’s performance.

The rise over the opening week of the month came against early instability in the global equities market.

Early dip in February gold price    

The lowest gold price of February was recorded on the 8th. In the space of two days, the precious metal fell from a height of £959.67 to £937.00, as faith in the dollar and the US economy firmed. This came as the dollar made its biggest one day rise against other currencies in six months.

Rebound against renewed dollar uncertainty

Faith in the American economy was once again knocked as sales data indicated that economic performance in the retail sector was less impressive than expected. The price of gold lifted accordingly, and the market hit its highest point against Sterling on the 14th, at £964.64.

Stable end to February

From the 14th, gold took a downward trend over the remainder of February, but remained above the month’s opening price. After a brief dip to £949.48 on the 23rd, it rose slightly and closed on the penultimate day of February, at £954.01. The opening price on the 28th was £951.14, remaining strong against a softening dollar and continuing fears of a rise in Federal rates.

A good time to buy gold coins and gold bars?

Keep updated on the ongoing gold market developments right here on our blog. Alternatively, if you want to take advantage of the steady prices and strong outlook for gold, view our range of gold bars and gold coins right here.

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<![CDATA[Why Bitcoin Doesn't Signal the End for Gold]]> https://www.thegoldbullion.co.uk/blog/why-bitcoin-doesn-t-signal-the-end-for-gold/ https://www.thegoldbullion.co.uk/blog/why-bitcoin-doesn-t-signal-the-end-for-gold/ Tue, 20 Feb 2018 00:00:00 +0000 When gold merchants and suppliers talk about Bitcoin, they don’t tend to do it with all that much enthusiasm. In fact, with reports flying around that Bitcoin is the gold of the future and that investors are flocking towards it, it’s safe to say that some in the gold industry had been getting decidedly anxious during Bitcoin’s latest price surge.

Of course if they’d been paying any attention to our gold market updates in January and December, they’d know that the gold market is doing perfectly well itself, and looks to be secure as a stable long-term investment asset over 2018 and beyond.

In fact, far from competing against one another, we think cryptocurrencies and precious metals are playing entirely different sports.

Gold and Bitcoin

Over the course of 2017, the price of Bitcoin rocketed, from just under $997.75 on the 1st January to almost $20,000 at its highest point in December, before dipping again beginning the first day of 2018 at $13,480.01. From the first day to the last, it increased its value by over 740 per cent. Gold, on the other hand, rose in value against Sterling by about 3 per cent over the same time period.

If this was a competition about which commodity can rise in value the fastest, then let’s face it – we’d already have lost.

And that precisely proves our point that there’s no competition here. Gold and Bitcoin can coexist in a balanced investment portfolio. Gold is considered a ‘safe haven’ asset, meaning that people invest a small but noticeable percentage of their overall wealth portfolio in it over a long period of time. Rarely has gold risen so quickly in value that it’s been worth playing the market over a period of days, weeks or even months. When inflation is high and economies are volatile, however, the price of gold almost always rises making it a solid long term asset to hold.

The clearest example of this was during the 2008 financial crisis, when gold rose in value beyond any point it had been measured at before, and peaked some years later in 2012 at a higher price than it’s been recorded at since. Few investments will rise so predictably in value when the economy is performing so badly – and that’s precisely why gold is such a staple of a diverse investment portfolio.

It’s also highly unlikely that anybody is going to buy Bitcoin as a ‘safe’ asset to hedge against risk. With the price of Bitcoin being so volatile, it’s become almost impossible to predict what the price is going to be next week never mind in 2020 or beyond.

Volatility in the gold price

If you were to compare a Bitcoin price chart against a gold price chart it’d be fairly easy to see which is the more volatile. With Bitcoin, the exponential rise that was seen over 2017 cannot possibly last. Since its opening price this year of $13,480.01, the price has fallen down to around $7,000 before recovering somewhat. It currently sits at $11,418 at the time of writing (20th February 12:00pm). The easy response to the drop (particularly for those trying to convince you to buy gold instead of Bitcoin) would be to say that Bitcoin’s over.

But of course, that would only be the case if you assumed the high November and December prices to be the default setting. In fact, taking into account that today’s price is still higher than it was through most of 2017 and indeed most of its life, there’s little that can be deduced from this other than ‘the price is less than it was a few months ago’.

That’s because Bitcoin’s incredibly volatile. Unlike fiat currencies, commodities, shares, precious metals – and any other type of established investment choice – nobody really knows what the rules to this market are… yet. It could shoot back up in price tomorrow to its December levels, or diminish so far in value that nobody would ever use it again. Nobody knows what’s going to happen and anyone that tells you with absolute certainty that they do is pulling the wool over your eyes.

To put it into context, a common way of recording volatility is by calculating the standard deviation – the closer to 0 the figure, the less volatile the commodity. Over a period from the 1st of September to the 31st of January, gold marked a standard deviation of 0.00703, against Bitcoin’s 0.05878. They might both seem like fairly small figures, but in fact that makes Bitcoin more than eight times more volatile than gold.

A volatile commodity lends itself to a very different kind of investment to one that broadly stays constant. As we learned when we looked at the differences in the gold price and other precious metals, buying gold is a way to secure a sum of money, where buying a more volatile commodity is more like betting on it.

Some investors may prefer one over the other, and some may even prefer to have a diverse portfolio including both – but a claim that they’re in competition with each other just doesn’t sit right with us.

A future with gold and cryptocurrencies

In fact, the respective benefits of gold and cryptocurrencies are so different that many new digital currencies have found ways to combine the benefits of the two. Cryptocurrencies like XGold and Goldcrypto, for instance, have devised blockchain interfaces which peg the price of their respective digital currencies to gold. These currencies take all the benefits of digital currency – a de-centralised platform through which to exchange value – and add into it a stable price backed by the original reliable investment asset: gold.

In the Roman Empire, an ounce of gold would have likely gotten you a fairly up-market toga and some accessories. Today, the equivalent value of just under £1,000 would get you a fairly nice suit. That’s remarkable stability of purchasing power for a commodity over a period of 2,000 years.

Gold has held its value through centuries, even millennia of economic innovations and financial reforms, through the silver standard, the gold standard, the arrival of paper money, the abandonment of the gold standard and more recently, digitised finances.

In short, the last thing we think gold is going to do is suddenly plummet in value because of the latest innovation in trading. In fact, we think gold is going to continue to be a sound financial investment for many years to come. As far as Bitcoin is concerned – we have no idea what’s going to happen to the price of that, but it’ll certainly be exciting to see where things go.

If you’re with us and agree that gold has a role to play in a diverse investment portfolio, then have a look through our range of gold bars and gold coins to find out more about the investment opportunities.

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<![CDATA[Give the Gift of Gold this Valentine's Day]]> https://www.thegoldbullion.co.uk/blog/give-the-gift-of-gold-this-valentine-s-day/ https://www.thegoldbullion.co.uk/blog/give-the-gift-of-gold-this-valentine-s-day/ Fri, 09 Feb 2018 00:00:00 +0000 Who says investments can’t have a little emotional value? Valentine’s Day can be a perfect time to commemorate your relationship whilst investing in a little long term financial security. And with the gold price at competitive levels against the current market outlook, it’s as good a time to enter the gold market economically as it is commemoratively.

So if you’re looking to buy gold coins this year to celebrate the past, present and future of your special relationship, then here’s a quick look at our favourite gold coin picks.

2018 gold Sovereign

As the latest edition of the Royal Mint’s flagship commemorative gold coin, the 2018 gold sovereign was always going to make it onto this list. But that doesn’t mean it’s any less valuable.

The gold coin has been a staple of British currency since the early 19th century, and this coin is just the latest in a long tradition. What better way to commemorate your relationship both emotionally and financially?

Gold Krugerrand

While not quite as old as the gold Sovereign coin, the Krugerrand is every bit as renowned and respected in the world of gold coin collectors and merchants. In fact, it’s the world’s most internationally traded gold coin, and was the world’s first gold bullion coin to be released containing one troy ounce of fine gold. And nothing quite says ‘I love you’ like a troy ounce of fine gold.

2017 American Eagle gold coin

For something small, yet intricate and memorable, the 2017 American Gold Eagle is a small investment with big commemorative value. Complete with a beautiful design of the American Eagle itself, as well as the ever romantic notion of Lady Liberty, this small token has everything you need to get your 2018 romance off to a good start.

Buy gold coins

If you’re looking to buy gold coins and commemorate your relationship this Valentine’s Day, while securing a reliable future investment, then The Gold Bullion Company is certainly the place to look. Have a look over our entire range of gold coins and gold bars to find out more.

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<![CDATA[January 2018: The Essential Gold Price Update]]> https://www.thegoldbullion.co.uk/blog/january-2018-the-essential-gold-price-update/ https://www.thegoldbullion.co.uk/blog/january-2018-the-essential-gold-price-update/ Thu, 01 Feb 2018 00:00:00 +0000 The gold price in January showed promising resolve against an ever-strengthening pound. While gold experienced a positive month against other currencies, the strength of the British currency at the start of 2018 provoked slight losses for gold against sterling. The gold price fell from £968.29 at the start of January to £951.23 at the end, a loss of 1.76 per cent.

Rise of the pound

In January, the pound recorded its highest prices against the dollar since the Brexit vote. Following the 2016 referendum, the pound slumped from £1.49 to £1.29 in the space of just a fortnight. It has not yet recovered these losses, but is gaining promising ground, having reached £1.42 at the end of January; a one month increase of 5.26 per cent.

In that context, the slight loss of 1.76 per cent of gold’s value against the pound can be seen as less of a hit, considering the relative value increase of the pound itself. Gold, in fact, has seen respectable price rises against other currencies like the dollar, signalling continued strength and resolve through January, in a trend that we hope will continue for much of 2018.

The gold price

On the opening session of January, gold recorded a starting price of £968.29 per troy ounce. The first 12 days of the month recorded modest increases, hitting heights of £974.29 on the 4th and £981.31 on the 12th January – the month’s highest price. This was largely thought to be a reaction to concerns in the American economy, in particular Donald Trump signalling further disdain for the 2015 Iranian nuclear deal, according to reports from Reuters.

Gold fell against sterling through the rest of the month as the pound continued to rally. The precious metal hit lows of £955.14 on the 18th of January and £948.74 on the 25th January, before rising slightly to £951.23 on the final day of the month.

How much is your gold bullion worth?

It’s difficult to call how successful January has been for your individual gold investment. While international comparisons signal a promising month for the commodity, a simple look at a gold price chart against the pound would suggest a weak month for gold closer to home.

So perhaps now is a good time to buy gold? If you’re considering making an investment in gold coins and gold bullion then have a look through our gold investment options. Stay tuned to our blog for more market updates and gold investment news.

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<![CDATA[Gold Price: What's happening in the Indian Gold Market?]]> https://www.thegoldbullion.co.uk/blog/gold-price-what-s-happening-in-the-indian-gold-market/ https://www.thegoldbullion.co.uk/blog/gold-price-what-s-happening-in-the-indian-gold-market/ Wed, 24 Jan 2018 00:00:00 +0000 New Delhi might not be the first place that pops into your head when you think of gold – but it’s certainly important. For traditional and cultural reasons, India is the gold market’s biggest customer. Let’s face it, you probably don’t think about gold in India very much, but since the market affects the gold price even here – it’s certainly worth paying attention to. Here’s what’s going on.

Why is gold in India so important?

Gold has been deeply rooted in Indian culture for as long as anybody can remember. In fact, the Hindu myths are full of references to it. Since then, a history of unstable national currencies and political turmoil has meant that Indians more than anybody else continue to appreciate the value of physical, ever reliable, gold.

In fact, the impact is so great that supply and demand in India often affects the gold price right here at home and on the markets around the world.

What’s happening to the gold market in India now?

A few months ago, around India’s biggest annual gold sales period, the market was dominated by headlines about the year’s disappointing sales figures. Apparently, diamonds were stealing gold’s long-held crown as India’s jewellery of choice.

The big news now 2017 is over, however, is that this sales slump has shown promising signs of abating. India’s own Economic Times recently reported sales increases of 15 per cent in India’s rural gold market, suggesting the country’s love affair with gold is far from history.

How does this affect the gold price in the UK?

Against a whole range of other factors that influence the gold price, it would be impossible to quantify any specific effect this is having on the price of your gold coins or gold bullion. Nonetheless, it shows strong signs that, as many investors have predicted, the gold market remains strong and reliable going into 2018.

Does this mean that the price of your gold is suddenly about to spike? Probably not. But it likely does mean that gold is the same trustworthy and dependable asset in 2018 that it always has been.

If gold is the asset for you, then now’s the time to find out more about our gold coins and gold bullion investment opportunities.

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<![CDATA[Gold Coins: What's the Difference Between Face Value and Actual Value?]]> https://www.thegoldbullion.co.uk/blog/gold-coins-whats-the-difference-between-face-value-and-actual-value/ https://www.thegoldbullion.co.uk/blog/gold-coins-whats-the-difference-between-face-value-and-actual-value/ Fri, 19 Jan 2018 00:00:00 +0000 Gold Britannia and Gold Eagle

Those who find themselves entering the commemorative gold coin market may be surprised to find that a coin they just paid upwards of £1,000 for, is technically only worth £100. As far as banks are concerned, if you asked them for the full cash value of a British Gold Britannia coin, you’ll be entitled to the amount that the coin says it is worth.

What is the face value?

Luckily, this is only really the case in technicality. Nobody’s ever likely to offer a commemorative coin like the Britannia or a Sovereign as payment for anything, and if you tried to claim its value in a bank they’d probably politely point you in the direction of a gold merchant.

But why is it that commemorative coins used as currency are worth so much less than their equivalent gold or silver content? Here’s a quick trip through the history, tradition and economics that cause this disparity.

Inflation and the £1 Gold Sovereign

Unlike the Britannia, the Gold Sovereign doesn’t have its face value recorded on the actual coin. It is nonetheless officially considered to be worth £1 in British currency. The reason for this is because when the Gold Sovereign was first minted to its current specifications in the early 19th century, the 7.98 grams of gold 22-carat gold that the coin contained would have been worth a pound.

Legislation and later tradition decreed that the coin be minted to the same specifications, meaning the coin is minted now with exactly the same amount of gold as it was in the early 1800s. But of course with the levels of inflation of the 20th century, £1 became worth less and less, meaning this consistent content of gold in the Sovereign got more and more valuable.

International gold bullion coins

Some international gold bullion coins can also find their roots in original currency but their face values do not always match up with history. The American Gold Eagle coin, for instance, has a face value of $50. Eagle was a term used as one of the four main decimal base-units of denomination for US currency in circulation prior to 1933. An eagle coin existed and was given a value of $10.

Other coins such as the Britannia, which were never based on a coin of circulating currency tend to choose a face value for stylistic purposes.

If you want to buy gold coins, be it gold Sovereigns, gold Britannias or the Gold Eagle, you’re likely to pay a lot more than the £1, £100, or $50 they’re technically worth.

When it comes time to sell your gold coins we will offer you a fair price based on the market price for the gold content, not the face value of the coin. So if the gold price increases over the period you own the coin, you’ll be making a hearty profit from it, no matter what it says on the tin.

Have a look at our full range if you want to buy gold coins from The Gold Bullion Company.

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<![CDATA[What Will Influence the Gold Price in 2018?]]> https://www.thegoldbullion.co.uk/blog/what-will-influence-the-gold-price-in-2018/ https://www.thegoldbullion.co.uk/blog/what-will-influence-the-gold-price-in-2018/ Wed, 10 Jan 2018 00:00:00 +0000 The gold price in 2017 rose modestly, but reliably. In a year dominated by Brexit, tensions with North Korea and uncertainty in the US, there have certainly been plenty of factors that have weighed on and bolstered the gold price.

But what’s going to happen to the price now we’ve entered 2018, and what are the main factors that are likely to influence it?

What are the predictions for the gold price in 2018?

While there’s no way to accurately predict the price of any commodity, there seems to be a broad consensus among market experts that gold will continue to rise reliably through 2018.

Accounts differ as to the rate of this growth with some saying it will be slower than 2017, and others predicting a rise of just over 17 per cent against the dollar.

What to watch out for

If you want to predict what’s going to happen to the gold price through 2018 and beyond, there are a few contemporary factors that you should pay attention to.

Here’s a look at what’s most likely to affect the market in 2018:

Geopolitical tensions

Uncertainty and instability often inflate the gold price. In 2018, the political spat that’s underway between the US and North Korea is likely to continue bolstering gold.

US Federal Reserve rates

Talk of US Federal Reserve rate rises have weighed down on gold through 2017. These rises seem more and more likely as we move through 2018, and chances that this will weaken gold therefore remain high.

Brexit negotiations

A list of economic uncertainties in the New Year couldn’t be complete without Brexit. Ahead of ‘Brexit Day’ in March 2019, 2018 looks set to be the crunch year for the tough negotiations. Any uncertainty about the progress of these talks, and the future potential trade deal will likely continue to weigh on the pound and bolster gold.

US economy

When the US economy underperforms, gold tends to rise, with the opposite being true when it performs well. Economic figures that track progress in the American economy will likely continue to affect the gold price. Pay attention to GDP figures, growth figures, and the size of revenue collected by the Federal Reserve.

If you think now is the best time to take advantage of the current gold price and buy gold bullion, have a look through our range of gold bars and gold coins.

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<![CDATA[What Happened to the Gold Price in 2017?]]> https://www.thegoldbullion.co.uk/blog/what-happened-to-the-gold-price-in-2017/ https://www.thegoldbullion.co.uk/blog/what-happened-to-the-gold-price-in-2017/ Fri, 05 Jan 2018 00:00:00 +0000 Over the course of 2017, the gold price recorded modest rises. Despite fluctuations, the market approaches 2018 with a more optimistic outlook than it has enjoyed in some years. Geopolitical tensions, repeating fears of a hike in the US Federal Reserve rates and downbeat figures and forecasts for the US economy and its currency have all led to an increase in safe haven buying over the course of 2017.

2017: An overview

On the 3rd January 2017, the gold price was £935.12. It ended the year on the 31st December 2017 up just over 3 per cent, at £964.88, with the year’s highest recorded spot prices being £1,025.91 and £1,029.02 on April 14th and September 4th respectively.

Despite this modest increase, the year’s lowest price against Sterling was recorded on the 13th December at £929.38. The markets managed to recover from the dip however in the closing weeks of December.

What caused the gold price fluctuations?

The price of gold gradually rose in the opening months of 2017, peaking at £996.81 on the 6th January, £1,012.17 on the 27th February and £1,025.91 on the 13th April. A weakened dollar, combined with geopolitical tensions over North Korea led to an increase in safe haven buying and we saw the age old trend of demand inflating the gold price.

The price quickly dipped to £943.89 in the opening days of May as Emmanuel Macron’s French Presidential election victory reassured investors and looks to have decreased the safe haven effect. After a brief spike to £1,003.37 on June 6th, the price fell again to £941.59 by July 11th.

Gold regained ground over the coming months, reaching £1,029.02 on September 4th, the record high for the year, which again came amid global uncertainty as North Korea continued with its nuclear tests.

The final weeks

In fact the most dramatic moments of the year occurred towards the end. In the space of two weeks, gold lost 4.6 per cent of its value, dropping from £974.18 to the lowest recorded price of the year, £929.38, between the 28th November and 13th December. This came amidst continuing Brexit confusion in the closing weeks of the first phase of negotiations.

These losses were quickly recovered, with the price rising back to highs of £964.875 on the final day of 2017.

The increases in 2017 were modest but nonetheless promising, and gold begins the year on a firm footing.

Is 2018 the year you buy gold? Click here to browse through our gold coins and gold bars and buy gold bullion today.

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<![CDATA[Buying Gold as a Christmas Gift? Make Sure It's Tax Free]]> https://www.thegoldbullion.co.uk/blog/buying-gold-as-a-christmas-gift-make-sure-it-s-tax-free/ https://www.thegoldbullion.co.uk/blog/buying-gold-as-a-christmas-gift-make-sure-it-s-tax-free/ Tue, 19 Dec 2017 00:00:00 +0000 If you’re a new or casual gold investor, and want to get the best deals on gold for your friends, relatives, or even yourself this Christmas, it might surprise you to hear that tax exemptions are available on a range of gold products.

With both gold coins and gold bars, tax free gold is available on various beautiful products, meaning you can get your gold investment for less – both for Christmas and throughout the rest of the year.

Here’s a look at the different taxes that might affect the price of your gold, and which products you can secure an exemption on.

VAT & tax free gold

VAT, or value added tax, is a flat tax rate which is charged on most goods and services at the point of purchase. Since it’s usually included in the price of products, you don’t always necessarily notice when you’re paying it, but chances are if you buy something online or on the high street, 20 per cent of the price is VAT.

Luckily, there’s an EU-wide VAT exemption on ‘investment gold’, which, in effect is the majority of gold coins and all gold bars available on our website and a significant contingent of those commonly traded elsewhere.

CGT & tax free gold

Where VAT is charged on the purchase of a product, CGT, or Capital Gains Tax, is charged at the point of sale. Specifically, it is charged on any profits you make from the purchase. Luckily, CGT won’t affect the vast majority of small time gold investors, since there’s a personal allowance, which currently stands at of £11,300. Any profits made under this allowance remain CGT free.

If you bought gold worth £10,000, for example, and subsequently sold it for £21,300, you wouldn’t pay any CGT tax. If you sold it for £21,400, you would only pay CGT on the £100 profits you made over the allowance. This will likely be £10 or £20, depending on the income tax bracket you fall under.

There are some gold products that remain exempt from CGT, even over the tax free allowance. These, in general are legal tender gold coins produced by the Royal Mint, principally the Gold Sovereign and Gold Britannia.

Buy tax free gold with The Gold Bullion Company

There is a wide range of tax free gold products available on our website, all of which are clearly marked with the exemption they’re subject to.

Browse of our wide range of gold bar and gold coin products, and make sure any special gifts you’re buying for Christmas this year are tax free where possible. 

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<![CDATA[What Just Happened to the Gold Price?]]> https://www.thegoldbullion.co.uk/blog/what-just-happened-to-the-gold-price/ https://www.thegoldbullion.co.uk/blog/what-just-happened-to-the-gold-price/ Thu, 14 Dec 2017 00:00:00 +0000 The closing week of November featured some of the most dramatic changes to the gold price for months. In the space of two days, the price of gold went from a 10-day high to a near 5-month low, before starting to crawl back up once again. As confusion over Brexit negotiations continues to cause uncertainty in the British economy – is volatility the new normal for the gold price?

High hopes for Brexit, low outlook for gold

In what now seems a political eternity away, the closing days of November brought what investors saw as encouraging news that the British government and the EU had settled upon a divorce agreement. Following months of uncertainty about the future of the relationship between Britain and the EU, Sterling made encouraging progress against other currencies, signalling a renewed faith in the British economy.

Between the 28th and the 30th of November, the gold prices fell sharply, as this renewed faith in the British economy, compounded with developments in the American economy, weighed on gold’s appeal as a safe haven asset.

On the afternoon of the 28th, a troy ounce of gold traded at a 10-day high of £979.27. Two days later, on the 30th, that figure had fallen by almost 4 per cent to £940.38 – its lowest price since mid-July. Good news for Brexit, bad news for gold.

Brexit hopes slashed, gold price improves

In true Brexit form, barely days later everything had changed. By the 4th of December, hopes of securing a divorce deal had been delayed, by the last-minute intervention of the Democratic Unionist Party (DUP).

Sterling fell against further confusion, and gold’s safe-haven potential came back to the fore. Amidst further economic chaos, the price of gold began to rise once again, hitting highs of £953.99 on the 5th December, and continuing an upwards trend in the coming days.

What does this mean for your gold price?

While gold prices have been remarkably stable for the latter half of 2017, recent events show that gold’s potential as a safe haven currency isn’t going anywhere. Even as things finally look to be moving forward in the Brexit negotiations, global geopolitical tensions are still high and analysts have suggested that gold will continue to be a wise investment through 2018 and beyond. 

If you want to find out more about investing in the contemporary gold market, then browse our current selection and buy gold here.

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<![CDATA[Christmas 2017 Opening Hours & Delivery Information]]> https://www.thegoldbullion.co.uk/blog/christmas-2017-opening-hours-delivery-information/ https://www.thegoldbullion.co.uk/blog/christmas-2017-opening-hours-delivery-information/ Fri, 08 Dec 2017 00:00:00 +0000 The Gold Bullion Company office will be closed between Midday on Thursday 21st December 2017 to 9am on Wednesday 3rd January 2018. During this period our Customer Service Team will not be available to take calls or answer emails.

Our website will continue to accept orders as normal for the duration of the Festive period.

In order to receive your goods before Christmas, please refer to the delivery information below:

Orders Under £300 (Tracked 48 Delivery)
All orders for less than £300 must be received by 2pm on Tuesday 19th December 2017 to ensure delivery in time for Christmas Day. You may, however, upgrade to Next Day Special Delivery for an additional fee to extend this deadline until 2pm on Wednesday 20th December 2017.

Orders Over £300 (Next Day Special Delivery)
All orders for more than £300 must be received by 2pm on Wednesday 20th December 2017. We must receive cleared funds for all orders and any necessary ID by this date to ensure delivery in time for Christmas Day.

All orders after 2pm Wednesday 20th December 2017 will be dispatched upon our return on Wednesday 3rd January 2018.

Cheques

We regret that we can no longer accept cheques.

Are you still looking for the perfect Christmas gift for someone special in your life?

Take a look at the brand new 2018 Gold Sovereign, the 2018 1oz Gold Britannia  and the 2018 Queen’s Beasts 1oz Gold Unicorn, both CGT FREE and VAT FREE products. We also have a range of gift boxes that really put the finishing touch to your bullion gift and made available for you when adding your items to the cart.

The Gold Bullion Company would like to thank all of our customers, new and old, for their support during 2017 and wish you all a Merry Christmas and Prosperous New Year.

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<![CDATA[Can Gold Safeguard Against Uncertainty Going Into 2018?]]> https://www.thegoldbullion.co.uk/blog/can-gold-safeguard-against-uncertainty-going-into-2018/ https://www.thegoldbullion.co.uk/blog/can-gold-safeguard-against-uncertainty-going-into-2018/ Wed, 06 Dec 2017 00:00:00 +0000

With the price charts looking to be very similar to those of 2016, we could be in for a gold rally through December and into 2018. Many in the industry are seeing political uncertainty as a growing concern with most pointing towards buying and holding gold for insurance. A lot of this is related to the lack of growth in the US economy, the Trump administration's limited fiscal stimulus and, for investors here in the UK, the continued bite of Brexit knock-backs and uncertainty.

The latest dip in gold price, due primarily to the US Senate's approval of tax reforms on the 2nd December, is being seen by many as the perfect opportunity to invest before the expected New Year rally. As more people turn to gold bullion for safeguarding their savings, there is greater demand for products that guarantee authenticity and accountability as well as providing greater investment security. This is why we are proud to showcase our "PAMP Veriscan" range of gold bars, the brand of choice for bullion investment in December 2017.

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<![CDATA[Gold Price Sees Dramatic Drop at End of November]]> https://www.thegoldbullion.co.uk/blog/gold-price-sees-dramatic-drop-at-end-of-november/ https://www.thegoldbullion.co.uk/blog/gold-price-sees-dramatic-drop-at-end-of-november/ Tue, 05 Dec 2017 00:00:00 +0000 November for the most part saw stability in the gold price as it tracked the least volatility against the dollar over a one-month period in 12 years. Despite this, November saw some contained fluctuations in the market, most noticeably between the 27th and 30th, when a comparatively dramatic fall in the gold price occurred.

On the 1st November, a troy ounce of gold sold for £962.94. This price rose to £979.77 by the 28th, and then fell to £940.38 on the 30th. Across the full month of November, gold lost 2.33 per cent of its value.

Initial peaks in palladium price and gold price

November began with price gains, as gold marked a three-week high at £981.44 on the 8th November. Palladium also recorded its highest value in 16 years during this week. This came as uncertainty spread about the upcoming US tax reforms, which look set to be the most fundamental for decades. True to trend, political uncertainty helped bump up our favourite precious metal.

This uncertainty continued to play a role throughout the coming weeks.

Dramatic falls in the gold price

Despite a modest rise and comparative stability throughout most of November, the closing days of the month saw a dramatic drop in the gold price.

Better than expected US-economic data showed growth rates to be higher than predicted, which bolstered the dollar and prompted a drop in the gold price. Gold lost 2.18 per cent of its value between the 27th and the 30th of November.

Sterling rose against the dollar during this period, as suspicions of a Brexit ‘divorce bill’ settlement improved expectations that a deal would soon be struck. Sterling gained 1.72 per cent of its value against the dollar over the same period, and the gold price at the close of November stood at £940.38.

As we move into December, the gold price has followed a downward trend for the first few days. With Brexit talks taking a turn for the worst on Monday 4th December, the market should prove pretty interesting over the coming days and weeks.

If you think this could be a good opportunity to buy gold, have a look at our range of gold coins and gold bars today.

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<![CDATA[What Happens to the Gold Price At Christmas?]]> https://www.thegoldbullion.co.uk/blog/what-happens-to-the-gold-price-at-christmas/ https://www.thegoldbullion.co.uk/blog/what-happens-to-the-gold-price-at-christmas/ Wed, 22 Nov 2017 00:00:00 +0000 Do you know what’s going to happen to the gold price over Christmas?

While there are some trends we can spot, like many things in the gold market, it’s difficult to make conclusive predictions. With economic and geopolitical situations becoming ever more volatile, it’s becoming difficult to predict the gold price over an afternoon, never mind the next few weeks.

But taking an opportunity to look back over the gold price trends from the Christmas period over the last few years could give us a few ideas. Here’s what happened in recent years.

What will happen to the gold price?

In general, there tends to be a modest upswing in gold prices over Christmas. The reasons for this are thought to be related to demand – demand is increased when people start buying gold products as gifts. But this doesn’t always necessarily materialise in as neat a price rise as you’d think and there are of course multiple additional market factors at play.

2016

In 2016, the gold price actually dropped significantly over November, losing almost 16 per cent of its value between the 3rd of November and the 18th December. Prices then rose again leading up to the New Year period; the precious metal reclaimed just over 4 per cent of its value between the 18th and the 3rd January 2017.

2015

A similar trend occurred on a smaller scale the year before. Gold lost 4.75 per cent of its value between November 1st and December 17th 2015, before rising again by 1.79 per cent to £718.36 at the start of 2016.

What does this tell us about gold prices? It means that if you’re looking to buy gold for a friend, relative, or maybe just yourself over the Christmas period, there’s a good chance that prices may rise as we move into December. It’s not certain, but it’s something to be aware of.

Buy gold with The Gold Bullion Company this Christmas

If you’re considering buying gold this festive season, take a look at our range of commemorative gold coins for some inspiration on that perfect Christmas gift idea.

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<![CDATA[What Affects the Gold Price?]]> https://www.thegoldbullion.co.uk/blog/what-affects-the-gold-price/ https://www.thegoldbullion.co.uk/blog/what-affects-the-gold-price/ Wed, 15 Nov 2017 00:00:00 +0000 While it’s clear that the gold price is far from constant, and that there’s great potential to make money from the fluctuations, it’s a lot harder to work out how to predict the falls and rises. Well, if there was a simple formula then everybody would do it. But there are certainly a few trends that smart investors over the years have managed to track. Here are a few.

Inflation hikes gold prices

Over time inflation has tended to cause gold prices to rise. This is because gold is generally believed to hold its value, so if Sterling or the Dollar becomes less valuable, then gold will become more expensive relative to the currency. In keeping with this trend, deflation or low inflation tend to reduce the gold price.

US interest rates

In much the same way as with interest rates, the general fortunes of world economies have a significant impact on the price of gold. When economic trust is lower, an increase in demand of gold is seen with ‘safe-haven’ buying, when people look to secure their wealth in a more trusted commodity than uncertain stocks and shares.

The biggest and most important world economy is the United States. Good fortunes for the US economy therefore reduce demand and the price of gold, and uncertainty creates demand. Interest rates are seen to have a connection to the gold price in this way as the price of borrowing holds a strong influence over economic growth.

Buy gold bullion in political uncertainty

This is closely tied to the previous point. ‘Safe-haven’ buying is a feature of political uncertainty just as much as it is with economic uncertainty. Uncertain political situations breed weak economies – and nothing sets the price of gold soaring like a weak economy. The rise of gold prices in the 1970s and 2008 should tell you all you need to know about that.

If you want to take advantage of the changing gold prices, take a look at our range of investment gold bars and gold coins here.

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<![CDATA[What Does the Interest Rate Hike Mean for the Gold Price?]]> https://www.thegoldbullion.co.uk/blog/what-does-the-interest-rate-hike-mean-for-the-gold-price/ https://www.thegoldbullion.co.uk/blog/what-does-the-interest-rate-hike-mean-for-the-gold-price/ Wed, 08 Nov 2017 00:00:00 +0000 On the 2nd November, the Bank of England announced an interest rate hike. The move sees the rate return to its 2016 figure of 0.5 per cent, having been halved to 0.25 per cent after the Brexit referendum.

Interest rates 2007-2017

The Bank last increased interest rates in May 2007, from 5.5 to 5.75 per cent, a move which was reversed in December that year.

Rates were then cut sharply following the financial crisis. Over the course of 2008 to 2009 the rate was lowered several times from 5.5 per cent at the start of 2008 down to 0.5 per cent by the end of 2009.

The Deputy Governor of the Bank of England, Ben Broadbent, suggested in an interview with the BBC that two further rate hikes will be needed in the coming years to return the UK to its 2 per cent inflation target.

What does this mean for me?

Higher interest rates mean banks charge more to lend money. Payments on mortgages, bank loans and overdrafts will likely increase. Banks have been typically slow to reflect the rate increase in their savings accounts but savers can expect to accrue an extra £25 a year for each £10,000 held in savings.

What does this mean for gold prices?

The hike in interest rates hasn’t had a noticeable effect on the price of gold, which is closely linked with US interest rates. The price of Sterling, however, decreased on the 2nd November, meaning the effective price of gold and silver in Sterling has risen.

  • Between 02:00 and 18:00, the pound lost 1.73 per cent of its value against the dollar, falling from $1.329 down to $1.306 for £1.
  • The price of a troy ounce of gold against Sterling therefore increased between the same times by 1.54 per cent, from £963.47 to £978.26.

A good time to sell scrap gold?

If you want to take advantage of the higher gold price in uncertain economic times and sell scrap gold, then contact us today to find out how much it could be worth. If you want to find out more about gold prices over October, read our update here.

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<![CDATA[Gold Price Sees Modest Increase in October]]> https://www.thegoldbullion.co.uk/blog/gold-price-sees-modest-increase-in-october/ https://www.thegoldbullion.co.uk/blog/gold-price-sees-modest-increase-in-october/ Wed, 01 Nov 2017 00:00:00 +0000 After swings in the gold price in September, October’s prices remained fairly consistent. The gold price began with a seven-week low, at £956.05 for a troy ounce, and finished on the 30th of October at £964.55.

Prices across the month rose by 0.89 per cent, but peaked on the 12th October at £985.80.

Iran & North Korea

Prices rose rapidly in the first week of October, as tensions in Iran & North Korea increased and investors made their traditional turn towards gold in times of uncertainty. This trend continued until the 9th October, when prices reached £980.86, before dipping on the 11th.

The price rose once again to its October height of £985.80 on the 12th October, ahead of US inflation rate revelations.

Strong dollar weakens gold price

Fluctuations continued over the next week, peaking again on the 16th October at £984.31 and the 19th at £980.99.

The gold price then declined gradually over the rest of the month and hit a notable low of £965.19 on the 23rd October, following the re-election of Japanese Prime Minister Shinzo Abe, which strengthened the dollar.

This decline continued throughout the rest of the month to £964.55 on the 30th October, with a brief peak of £971.38 on the 28th, thought by analysts to be related to the political situation in Spain.

Weak economic forecasts

Amid the slight rise in the gold price, the UK economy is responding to weak economic data in growth and productivity. In addition to this, the price of Sterling decreased against the dollar by 1.59 per cent during October.

Sell scrap gold at The Gold Bullion Company

If you’ve been hit by the recent run of gloomy UK economic data and want to access some quick cash, don’t forget that the Gold Bullion Company also buy gold. So if you’ve got any gold coins, gold bars or even gold jewellery that you’d rather have the cash for then get in touch with us today to find out what it could be worth.

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<![CDATA[What Precious Metal Should I Invest In?]]> https://www.thegoldbullion.co.uk/blog/what-precious-metal-should-i-invest-in/ https://www.thegoldbullion.co.uk/blog/what-precious-metal-should-i-invest-in/ Thu, 19 Oct 2017 23:00:00 +0000 If you’re a first time investor looking to make the most money from precious metals, it pays to do your research before you start parting with your cash. Apart from the prices, which vary widely, the properties and practicalities of each metal mean that they each have something different to offer investors.

Here’s a quick breakdown of the main types of precious metal bullion and which ones might be the best investment for you.

Gold bullion

Gold is known as a reliable investment. Historically, we have seen gradual rises in the gold price over time. This precious metal tends to hold its value. While national currencies are subject to economic volatility, demand and prices for gold tend to increase as economic outlook decreases.

Consequently, the gold price rose to new highs after the financial crash, peaking around 2012. This has since reduced, but global recent political uncertainty during 2016 and 2017 is causing prices to rise again.

For this reason, gold is largely seen as a good commodity for the protection of wealth over time. The fact that it’s a very dense metal also means that it is practical for storing a large amount of wealth if you want to buy gold bullion.

Silver bullion

Historically, silver prices were more volatile than gold, but in recent years this hasn’t always been the case. Though silver is much less valuable than gold, its value tends to increase and decrease broadly in line with gold.

The fact that silver is less valuable than gold means that it can be the metal of choice for investors looking to buy and sell on a smaller scale. If you’re looking to invest a lot of money in precious metals, however, it may prove more difficult and even potentially impractical to invest in silver in such large volumes if you’re seeking to buy physical silver bars.

Platinum and palladium bullion

Palladium and platinum have very similar properties to one another. Both of them are rarer than gold and are almost exclusively mined in South Africa. They are more often mined as by-products of other metals than on their own, and demand for them can change very drastically over a short period.

The prices for these precious metals are much more volatile than gold because the variations in supply and demand greatly affect the prices. This creates opportunities for investors who are looking to make a sharp profit – but of course comes with a much greater risk than the more predictable behaviour of gold and silver.

Unlike gold, the price of platinum and palladium tends to increase in times of economic stability, and decrease during volatility or crisis.

The right previous metal depends on your personal circumstances and appetite for risk. Whichever you choose, be sure to keep an eye on the prices to get an understanding of the market before you invest.

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<![CDATA[What Happens When My £1 Coins Stop Being Legal Tender?]]> https://www.thegoldbullion.co.uk/blog/what-happens-when-my-1-coins-stop-being-legal-tender/ https://www.thegoldbullion.co.uk/blog/what-happens-when-my-1-coins-stop-being-legal-tender/ Tue, 10 Oct 2017 23:00:00 +0000 Since 1983, the round £1 coin has reigned supreme as the most widely used British coin – but soon it will be no more. From the 15th October 2017, they will no longer be considered legal tender by the Bank of England and will be replaced by the new £1 coins that you’ll have seen creeping into circulation since March this year.

But if you’ve got a secret stash of old £1 coins lying around somewhere, what does this change in the legal tender status of the £1 coins mean for you?

The 1983 round £1 coin

The Royal Mint replaced the old £1 bank note in the early 80s; phasing that out between 1983-1984, in much the same way as they’re doing now (although the note has hung around in Scotland until much more recently).

Since then, a staggering 1,671,000,000 of these coins are thought to have been released into circulation, of which 47,000,000 are believed to be counterfeit.

In order to deal with this extensive problem of counterfeit money, the Bank of England has decided to get rid of the old coin and simply replace it with a new one - in fact, the replacement is said to be the most secure one ever.

So what is legal tender?

The Bank of England summarises legal tender in the following way: ‘‘If you are in debt to someone, then you can’t be sued for non-payment if you offer full payment of your debt in legal tender.” Reading that definition, it sounds as though it has very little to do with buying a pint of milk or litre of petrol.

In practice, all it means is that the Bank of England only considers legal tender to be official currency. And while, in most cases, there’s no legal obligation for anybody to pay any attention to what is and isn’t legal currency, of course the vast majority of organisations and individuals do anyway.

What does this mean for me and my £1?

But before we get pulled into a philosophical debate around the definition of money itself, let’s talk practicalities.

Essentially, after the 15th October, most stores and outlets will no longer accept the round £1 coin for payment. You may get lucky and come across a rogue ticket machine somewhere, but it’s unlikely, so it’s probably a good idea to get rid of your old £1 coins before then.

If not, your bank or building society will continue to exchange these coins for their full value for a short while after the 15th, but this offer won’t last forever. That means if you come across a decades-old stash of £1 coins in your attic on the 16th of October, you can still get them exchanged for their full value – you just won’t be able to actually spend them.

If this exciting currency change has got you thinking about British coins and currency, then have a look over our range of gold coins and silver coins. One thing’s for sure – they’ll be a lot more valuable than your old round £1 in a few years’ time!

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<![CDATA[How, When and Why to Buy Gold this Diwali]]> https://www.thegoldbullion.co.uk/blog/how-when-and-why-to-buy-gold-this-diwali/ https://www.thegoldbullion.co.uk/blog/how-when-and-why-to-buy-gold-this-diwali/ Mon, 09 Oct 2017 23:00:00 +0000 PAMP Faith for Diwali

As the warm days of summer begin to fade into autumn, we suddenly find ourselves coming ever closer to this year's Diwali festivities. And this year it's coming really early - Diwali 2017 kicks off on the 19th October. As ever, buying gold will be a central part of the celebrations.

Diwali and gold

It’s not news that gold plays a central role in the Festival of Light. We love the well-known legend in modern Hindu culture that, on the fourth day of his marriage, the son of King Hima was destined to die from a snake bite. As the story goes, the only thing that saved him from certain death was his wife’s action in piling up all the family gold outside the door. The snake was so dazzled that he couldn't go any further than the gold, and thus, slinked away.

The first day of Diwali, Dhanteras, is devoted to celebrating this day. Gifts of gold, particularly jewellery are an important tradition, influenced by the son of King Hima and his wife’s golden safety barrier.

Invest in gold at Diwali

Over the past few years however, there has been a move to buy more than just traditional gold jewellery in Diwali season. Many people are considering more investment-focused items like buying gold coins and gold bullion now as well.

There is a very good reason for this. Though Hindu attachment to gold is predominantly cultural – there is a distinct streak of investment wisdom involved, as gold holds its value well against uncertain national currencies and stocks and shares.

As Jeffrey A. Franks once said: 'Holding gold has ... often in history served, from France to India, as the only way the peasant can protect themselves against inflation.' Gold isn’t just a luxury for the high and mighty, but rather a form of financial security for each and everyone one of us.

In a post-financial crisis world, when national currencies and economies are increasingly volatile, the global price of gold has risen. Indian culture in particular recognises this, with inflation having risen drastically in recent years, as the value of the Indian currency has fallen.

For Hindus, and indeed people of any culture, buying gold coins and gold bars is not simply a luxury, it is a studious and sensible investment opportunity - and Diwali marks the perfect time to put some serious thought and consideration into this as an investment strategy.

When to buy gold

Due to the rise in demand, it is often the case that the price of gold peaks worldwide during Diwali – in 2016 the price rose 3.9 per cent over the period from the 11th October to the 4th November. The same could likely happen this year.

So if you're looking to buy gold this year for Diwali, either as an investment piece, or as a gift for a loved one or a friend during this special festival, then it’s worth taking action soon before the price begins to rise.

If you want to keep an eye on the gold price, take a look at our gold price charts here. Alternatively, have a browse of our commemorative gold coin selection, for ideas and inspiration on getting that perfect Diwali gift.

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<![CDATA[Gold Price Movements: What Happened in September?]]> https://www.thegoldbullion.co.uk/blog/gold-price-movements-what-happened-in-september/ https://www.thegoldbullion.co.uk/blog/gold-price-movements-what-happened-in-september/ Fri, 29 Sep 2017 23:00:00 +0000 There was notable movement in the gold price through September, coinciding with various global events. On the 1st September, the gold price stood at £1,019.74 per troy ounce, before rising to a 12-month high around the 4th at £1,029.02. The price of gold then sank to a seven-week low at the end of the month.

The US dollar and the gold price

The initial rise over the first week of September was set against a falling rate of the dollar, following weaker than expected economic data reports. This proved short-lived, however, and prices began a downward trend from around the 8th of September.

Not long after, US economic outlooks began to improve after President Trump signed a bill giving around $15bn of emergency aid to those areas affected by Hurricane Harvey. As the dollar strengthened, gold prices stayed true to trend and dipped.

The price continued to dip over the coming week, falling to the lowest point of the month so far, at £956.15 on the 21st September, just after the US Federal Reserve announced it was on track to raise US interest rates later in the year.

Global events

From the 25th September, the price rose slightly, reaching £967.76 on the 26th, as the rise of the far-right Alternative für Deutschland party performed well in the German federal elections. This caused the euro to dip in value, and a subsequent bump up in the price of gold.

Through the last week in September, however, gold prices continued to fall. On the 28th September, continued fears of US interest rate rises coincided with a price dip to £955.71. Further improvements in the dollar and the US economy kept the gold price down as it hovered around its lowest point in seven weeks.

Over the course of September, the overall value of gold fell 3.84 per cent. Remember, if you’re looking to buy precious metals, it’s well worth monitoring the price of gold to get a gauge of the market before you make your purchase.

If you want to take advantage of falling prices, consider buying physical gold bars or gold coins, take a look through our selection here.

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<![CDATA[Uncovering the Opportunities for Gold Investors during Diwali]]> https://www.thegoldbullion.co.uk/blog/uncovering-the-opportunities-for-gold-investors-during-diwali/ https://www.thegoldbullion.co.uk/blog/uncovering-the-opportunities-for-gold-investors-during-diwali/ Wed, 20 Sep 2017 23:00:00 +0000 Diwali is widely considered to be the most important festival of the Hindu religious calendar - the celebrations go on for five days each year, and occur towards the end of October or the start of November. This year the big date to remember is October 19th.

Also known as the Festival of Light. Diwali is of crucial cultural importance to many Hindus, and buying gold is considered a fundamental part of the celebrations. Because of this boost to demand, many people from other cultures are starting to take notice of the season as a potential investment opportunity.

Gold and Diwali

From a Western perspective, possessing gold is simply viewed as smart investment. And while that undoubtedly remains true in Hindu culture too, gold is a much stronger cultural symbol too. Looking to Hindu mythology we can see why.

A story closely tied to the festival of Diwali, describes how the son of a King had been prophesised to die from a snake bite. He was saved from this fate by his wife, who piled up so much gold by the door, that the snake was too dazzled to come in and bite the Prince. This day has come to be referred to as 'Dhanteras' among various other names, and its celebration marks the first day of Diwali.

Hindu culture is intrinsically linked with gold, and purchasing the precious metal in the days leading up to Diwali each year is considered a cultural tradition. India is the world's largest consumer of gold and the first day of Diwali is the single biggest day of gold purchasing anywhere in the world.

But a closer look into Indian and Hindu culture reveals that the cultural attachment may be more closely linked with its investment potential than one might immediately think. As you may know, gold is widely considered an asset that holds its wealth against inflation.

When’s the best time buy gold during Diwali season?

Due to the rise in demand of gold during the Diwali period, the overall price of gold often rises in the weeks leading up to, and across Diwali week. In 2016, the price of gold rose 3.9 per cent over a period of three weeks up to and including Diwali.

The phenomenon varies year on year, and, like many things in economics, is subject to a lot of other factors on top of just the demand of gold over Diwali. But an analysis of gold prices in 2016 and most other years since 2010 has shown that the worldwide price of gold often peaks around the Diwali period. An investor looking to make a quick profit could do worse than investing in gold at the start of October and selling it again at the start of November.

Whether or not you're interested in Diwali for cultural reasons, it is clear that this time of year is a fascinating time for the gold market, and presents some interesting and fairly unique investment opportunities.

If you’re considering buying gold over the coming weeks, then make sure you keep a close eye on the price of gold. Your options for what to buy are really broad so do take some time to have a look through the gold bars and gold coins on the market today.

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<![CDATA[Value and History: Silver Coins from The Royal Mint]]> https://www.thegoldbullion.co.uk/blog/value-and-history-silver-coins-from-the-royal-mint/ https://www.thegoldbullion.co.uk/blog/value-and-history-silver-coins-from-the-royal-mint/ Wed, 13 Sep 2017 23:00:00 +0000 The Royal Mint has been making silver coins since the time of the Anglo-Saxons, and maintains its prestigious reputation to this day.

Its exact origins are unclear but it can be traced back at least to the time of Alfred the Great in 866 and has unsurprisingly seen substantial changes since its conception. After spending most of its life based in the Tower of London, the Mint moved to a new base in Llantrisant, South Wales in the late 60s, ahead of the vast amount of work required for decimalisation.

Silver coins at The Royal Mint

In the 8th Century, silver coins were the most common type of currency. Back then, if you had 240 silver coins, or sterlings as they eventually came to be known, you would be holding roughly a pound in weight. A pound of silver, or £1 as we call it today, was considered a very substantial sum of money. Eventually, the terms 'pound' and 'sterling' came together to refer to our own currency that's in use today.

These early silver coins were made from the purest silver available to minters at the time, but in the 12th Century, it gradually reduced to a purity of 92.5 per cent, and was standardised at that percentage in 1300. That purity of silver came to be referred to as sterling silver, a term we still use to this day.

The Royal Mint continued to produce sterling silver coins in circulation until the middle of the 20th Century.

The current Royal Mint collection

Today The Royal Mint produces various commemorative silver bullion coins, which are popular with investors and coin collectors alike.

The most well-known of these is the Britannia series, which The Royal Mint has been producing silver coins for since 1997. Each variant of the popular Britannia series features the Britannia figure, a woman inspired by Boudicca who is considered 'the personification of Britain'.

The Britannia series of coins have a purity higher than that of traditional sterling silver, at 99.9 per cent.

Take a look at the new 2017 Britannia here, or browse our whole range of Royal Mint silver bullion coins.

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<![CDATA[A Very British History of Gold Coins from The Royal Mint]]> https://www.thegoldbullion.co.uk/blog/a-very-british-history-of-gold-coins-from-the-royal-mint/ https://www.thegoldbullion.co.uk/blog/a-very-british-history-of-gold-coins-from-the-royal-mint/ Wed, 06 Sep 2017 23:00:00 +0000 For over a millennium the Royal Mint has underpinned and maintained the British currency. Though its main operations involve managing the coins we use on a daily basis, it also produces a variety of gold bullion coins, for commemorative and investment purposes.

But it's often difficult to tell what sets these different coins apart from each other and by association - which Royal Mint gold coins you should buy.

The Royal Mint

The Royal Mint is generally thought to have been established by Alfred the Great in 886. After uniting the English kingdoms, it was the first time that a unified authority was created to control the national currency. This established a relationship between nation, monarch and currency which has been maintained ever since.

The Mint it was based in the Tower of London for much of its life, before the demands of decimalisation forced it to move to South Wales in the 1960s.

The best Royal Mint gold coins to buy

So if you’re considering investing in these tokens of British heritage, take a look at some of The Royal Mint's long-running sets of gold coins:

  • Sovereign

The Sovereign gold coin has been minted continuously since 1817 from 22 carat gold. It is created to the exact specifications of the Coinage Act the year before its first mint. For many years, gold Sovereigns were used in everyday circulation, as a 1 pound coin, but they are now only produced as a commemorative item. Have a look at the 2017 gold Sovereign here.

  • Britannia

The popular Britannia gold coins have been produced by the Royal Mint for 30 years, and are made from 1 troy ounce of 24 carat gold. Though they have a face value of £100, they've never been used in circulation, and have always been a collector's item.

  • The Queen's Beast

Based on a set of 10 statues at the Queen's coronation, this more recent range is designed to celebrate the Queen and her ancestry.

Have a look

Coins from all of Royal Mint's popular ranges of gold coins are available to buy online from the Gold Bullion Company.

Have a look at our fantastic range of British Gold coins from The Royal Mint here.

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<![CDATA[Gold Bullion Market Update - August 2017]]> https://www.thegoldbullion.co.uk/blog/gold-bullion-market-update-august-2017/ https://www.thegoldbullion.co.uk/blog/gold-bullion-market-update-august-2017/ Thu, 31 Aug 2017 23:00:00 +0000 The gold price spiked to a near 10-month high on the morning of Tuesday 29th after North Korea launched a ballistic missile that flew over Japan.

The missile landed at around 6am on Tuesday in the waters off the east coast of Hokkaido, Japan’s second largest island, after the Japanese government issued an alert on the island urging residents to find shelter.

The price of gold jumped to £1,018.92 per troy ounce following the launch, as the tensions caused investors to seek a safe-haven for their assets.

Demand for the precious metal, which has a long history of stability even in times of economic uncertainty, is often high following geopolitical risks and uncertainty when traders seek safety from other more volatile markets.

Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen thinks investors are justified to be putting their faith in gold.

He told Reuters: “Stocks are coming off hard, the dollar has weakened and now also the yen, which has been the missing link, while bond yields are also taking a beating.”

The gold price high on the 29th wasn’t the first of the month, with rates rising to £1,005.93 on Friday 18th too as the dollar weakened in the wake of political uncertainty in the US and an Islamist attack in Spain.

Sixteen people were killed in a series of attacks in and around the Spanish city of Barcelona on Thursday, August 17th and in the early hours of the following morning.

Markets were also unnerved by US President Donald Trump’s remarks on violence in Virginia, which prompted the disbandment of two prominent business advisory councils.

Speaking to Reuters, INTL FCStone analyst Edward Meir said he suspects the discord coming out of Washington could pressure the dollar further and prove supportive for the gold price.

Danske Bank analyst Jens Pedersen agreed, telling the publication: “There is clearly more for financial markets to be concerned about.”

Referring to the attack in Spain and the US political uncertainty, Pedersen added: “That has led to a risk-off environment, and that’s supportive for gold.”

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<![CDATA[Investing: The Benefits of the Secondary Gold Market]]> https://www.thegoldbullion.co.uk/blog/investing-the-benefits-of-the-secondary-gold-market/ https://www.thegoldbullion.co.uk/blog/investing-the-benefits-of-the-secondary-gold-market/ Sun, 20 Aug 2017 23:00:00 +0000 At the beginning of August, we published a short guide to secondary gold purchases – a lucrative option that can offer an affordable means of acquiring investment-grade gold bullion.

Today we’re looking specifically at the benefits of the secondary gold market and how investors might use it to their advantage.

If you’re a first-time investor or a savvy trader looking for legitimate opportunities to buy cheap gold bars, the secondary gold market could be for you. Likewise, if you’re an experienced investor seeking good deals on large amounts of gold bullion, you could avoid paying premiums by opting for the secondary market.

Buy top quality cheap gold bars

Despite what many people may think, secondary gold doesn’t always mean lower quality. Many products for sale on the secondary gold market are in fine condition, having been packaged, stored and transported with great care.

It’s not uncommon to find second-hand gold products in an as-new condition, particularly when they’ve been sealed in a secure certicard, like those from PAMP or Metalor.

Where they’ve been removed from such protective packaging, gold bars will generally be sold with a reduced fashion fee (the premium added to cover the cost of packaging and production), making them a good choice for those looking to buy cheap gold bars.

It's also worth remembering that, even when a gold bullion bar or coin isn’t packaged and it does show wear and tear, the value of the fine gold contained within it is still the same.

The value of secondary gold is directly related to the live spot price, meaning its price will reflect the current market price no matter its age.

Find old and rare gold coins

The nature of gold coin collecting means that many of the most sought-after and valuable coins will only be available secondhand, meaning collectors are likely to be familiar with the secondary gold market already.

Whilst each collector has their own individual goals that dictate which coins they’ll pursue, coins that are no longer being produced – either because they’ve been discontinued completely or because their design has been updated – are favourable amongst many collectors.

These coins can often be the most valuable, particularly if they’re old and rare, making them a worthwhile investment product that is likely to increase in value over time.

Find out more about the benefits of investing in bullion coins.

Whether you’re exploring gold coins or gold bars on the secondary market, always remember to look for a reputable seller with an excellent established reputation and be very wary of anyone offering a deal on eBay, Gumtree or similar that sounds ‘too good to be true’ – it probably is.

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<![CDATA[HMRC Push to Stop Salaries Paid in Gold Bullion]]> https://www.thegoldbullion.co.uk/blog/hmrc-push-to-stop-salaries-paid-in-gold-bullion/ https://www.thegoldbullion.co.uk/blog/hmrc-push-to-stop-salaries-paid-in-gold-bullion/ Sun, 13 Aug 2017 23:00:00 +0000 Using gold bullion to pay wages as a way of avoiding tax has been stopped as a result of an expert panel’s decision.

The specific case in question saw two directors of a company each receive payments of around £150,000 via a complicated sequence of actions, involving an offshore trust and the acquisition and immediate sale of gold bullion.

The panel, made up of tax avoidance experts, ruled that paying wages in gold bullion is a “contrived” scheme for tax avoidance that is designed to “frustrate the intent of Parliament by identifying potential loopholes”. They said they found “no reason for the steps to involve gold, other than for tax purposes.”

This was the first use of the general anti-abuse rule panel (GAAR), which was set up by former Chancellor George Osborne in 2013 as a method for combating tax evasion. The finer details of the ruling were debated by an advisory panel that included accountants, business representatives, campaigners and lawyers.

HM Revenue & Customs said it was delighted by the decision which “reinforces the power of the GAAR in tackling abusive tax avoidance.” It said: “HMRC has already made clear that gold bullion avoidance schemes don’t work and that we will challenge these schemes.”

Bill Longe, tax expert at accountants RSM, said the gold bullion scheme dates back decades. He told the Guardian: “People used to be paid in all sorts of assets – hay, wine, Persian carpets, Turkish lira, gold bullion, platinum – all these arrangements were freely available and a means of avoiding tax and National Insurance contributions on bonuses.”

In May 2016 HMRC warned against paying salaries in gold bullion with the announcement of several related changes which would tackle the current and historic use of disguised remuneration tax avoidance schemes. It said: “HMRC will challenge these schemes wherever possible, including legal action through the courts. Despite this, promoters have continued to market these schemes.”

The government has been met with questions as to why it’s taken four years since the introduction of the GAAR for it to be employed. The delay was likely because the GAAR could only be applied to transactions reported after July 2013, which didn’t have to be filed with HMRC until January 31, 2015. Investigations would then have taken some time. A big downturn in the use of similar avoidance schemes was also reported.

Clearly using gold bullion to avoid tax obligations in this way is not to be recommended, especially when there are plenty of perfectly legitimate ways to benefit from owning gold.

In fact for individuals gold could actually offer some legitimate tax benefits in the form of Capital Gains Tax (CGT) relief, such as is offered on some gold coins.

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<![CDATA[What is the Secondary Gold Market?]]> https://www.thegoldbullion.co.uk/blog/what-is-the-secondary-gold-market/ https://www.thegoldbullion.co.uk/blog/what-is-the-secondary-gold-market/ Sun, 06 Aug 2017 23:00:00 +0000 The secondary gold market describes the exchange of gold on a second-hand basis. It involves buying or selling gold products from or to a party other than the original vendor when the product first exchanged hands in pristine condition.

What’s the value of secondary market gold?

The value of secondary market gold products holds strong because – regardless of their age and condition – they will always contain the same amount of fine gold. Their value is directly tied to the live price of gold and the primary gold market as a whole.

Contrary to popular belief, secondary market gold doesn’t always mean reduced quality. If a gold bullion product has been well cared for – packaged, stored and transported carefully – it is likely to be in very good condition.

That said, generally speaking, the more signs of wear and tear a gold bullion product shows, the cheaper it will be.

What are the key benefits of trading in the secondary gold market?

The secondary gold market provides more opportunities and further flexibility to investors, particularly those looking to buy cheap gold bullion.

The benefits of buying in the secondary gold market include:

  • Opportunity to find old and rare gold coins
  • Possibility of buying cheap gold bullion (due to wear and tear on the packaging)
  • Regardless of condition, the fine gold content is still the same

Who buys gold on the secondary market?

Many people buy in the secondary gold market for various reasons.

Those looking to buy cheap gold bars or coins may turn to the secondary gold market to find products with lower premiums added to the spot price of gold. First-time investors who are looking for a cheaper way to enter the market might be interested, but the secondary market is equally attractive to more experienced investors seeking to hold large amounts of the precious metal.

Some collectors may also use the secondary gold market to find old or rare coins. These types of coins just aren’t available in perfect condition because they’ve been around for so long and may have changed hands many times already.

Despite this, they’re still a very alluring option for collectors who enjoy seeking out each coin within a particular set or year.

What are the disadvantages of buying and selling in the secondary gold market?

Whilst the big international mints issue fine new collectable coins each year, the older and rarer coins will tend to only be available on the secondary market.

But for those collectors who look for perfection and prefer coins that are in their original condition, the secondary gold market might not always be the best option.

The other potential downside of the secondary market is the fact that it leaves buyers open to scams. Sadly, as with most valuable items, you’ll come across dishonest traders who sell imitation products that don’t carry the same value as the real deal would.

We’ve heard from many customers who have had bad experiences on eBay after buying what they thought was a genuine second-hand gold coin only to be disappointed. Our advice when looking for bullion or coins on the secondary market is to only buy from reputable sellers with a great number of positive reviews and open feedback so you can be assured that they deserve their reputation.

Where can you buy genuine secondary market gold?

As we mentioned, some investors and collectors turn to live auction sites (such as eBay) or second-hand sites (such as Gumtree) when they’re searching for secondary market gold.

Whilst there are reputable dealers selling on these sites, you do need to be careful and should always be wary of scams or illegitimate offers.

Some mints, such as PAMP, have introduced special packaging that allows people to identify whether or not the gold bullion products are genuine, even after they’ve been sold into the secondary market.

We recommend using a trusted and well-rated gold bullion distributor with a strong track record and a secure and verified payment system as a safer alternative. This should reduce the risk of falling prey to scams and ensure your investment in second-hand gold is worthwhile. 

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<![CDATA[Gold Bullion Market Update - July 2017]]> https://www.thegoldbullion.co.uk/blog/gold-bullion-market-update-july-2017/ https://www.thegoldbullion.co.uk/blog/gold-bullion-market-update-july-2017/ Mon, 31 Jul 2017 23:00:00 +0000 The gold price has seen quite a few ups and downs over the course of July. The price of the precious metal fell early in July to a low of £941.55 on the 14th before rising steadily again throughout the rest of the month.

The price drop followed the publication of US jobs data, which was stronger than expected and therefore increased the likelihood of further US interest rate hikes.

“We have a stellar US jobs number,” Naeem Aslam, Chief Market Analyst at Think Markets, told Reuters. “The data has brought negative news for gold traders as there isn’t really anything in this number which is going to put the brakes on an interest rate hike.”

The gold price was soon on the up again, however, as the chances of an impending rise in US interest rates dropped. Prices continued to rise again steadily for most of the month, peaking at around £968 on the 31st.

“What we’re seeing right now is the overhang from political risks in the United States,” Stephen Innes, head of trading for Asia Pacific at OANDA in Singapore, told the news agency.

The US government’s failed attempts to throw out Obamacare along with several federal and congressional investigations into US President Donald Trump’s ties to Russia relating to his campaign have called into question his first six months in office.

As political and economic uncertainty remains in the US, the dollar continues to suffer and the outlook for gold bullion looks good.

MKS PAMP trader Sam Laughlin said in a note to Reuters: “The dollar weakness should continue to support gold around current levels.”

The weaker the dollar, the more attractive US dollar-denominated gold becomes for buyers using other currencies.

Other industry news

In other industry news, The London Metal Exchange (LME) launched new exchange-traded and centrally cleared precious metals products in July, with the intention of providing a more modern and transparent solutions to strengthen the market.

Developed by the LME, the World Gold Council and six leading industry participants, it comprises spot, daily and monthly future contracts for silver and gold. Volumes were reported to surge in the first week of trading, with a total of 25,590 lots (79.6 tonnes) of gold traded.

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<![CDATA[What Does the Gold Spot Price Mean?]]> https://www.thegoldbullion.co.uk/blog/what-is-the-spot-price-of-gold/ https://www.thegoldbullion.co.uk/blog/what-is-the-spot-price-of-gold/ Mon, 24 Jul 2017 23:00:00 +0000 When you’re researching or reading up on the gold market, you’ll likely come across different terms that describe the price of gold. Whilst beginners may find monitoring the live gold price gives them enough insight into the market, it’s important to understand how the different prices are determined and what each of them represents.

The gold spot price, gold futures prices and the gold fix price each have a different purpose and are set in different ways.

1. The gold spot price

The spot price of gold is simply the live gold price, meaning it’s the price gold could be bought and sold for right now. It represents the price for one troy ounce of gold and, typically, the higher the demand, the higher the price.

The spot price of gold is determined by over-the-counter (OTC) trading in which traders typically work on a one-on-one basis to make independent deals. It’s quite simply the current price of gold as a commodity in this market.

2. Gold futures prices

Gold futures are public and regulated exchanges where gold is traded (in the form of contracts) for its expected value at a specific time and place in the future.

This means that the amount and prices the buyer is willing to buy and pay are determined now, but the exchange takes place on a date in the future. The trade is essentially an educated guess at where the market value of gold will be at that specific date in the future.

Most futures traders use the time between the initial deal and the eventual exchange to sell anything they’ve bought or buy back anything they’ve sold. That way, when the exchange (or settlement) date comes around, they will only have to settle their gains and losses.

3. The gold fix price

The LBMA sets the price of gold twice each day in an independently operated auction that is administered by the ICE Benchmark Administration (IBA).

The first price is set at 10:30am UK time and is otherwise known as the ‘London fix’. As other parts of the world wake up and begin trading on the gold market, the London fix gold price is then adjusted according to COMEX, a division of the New York Mercantile Exchange (NYMEX). The second price is then set at 3pm UK time.

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<![CDATA[What is the Gold Fix Price?]]> https://www.thegoldbullion.co.uk/blog/what-is-the-gold-fix-price/ https://www.thegoldbullion.co.uk/blog/what-is-the-gold-fix-price/ Sun, 16 Jul 2017 23:00:00 +0000 Set by the London Bullion Market Association (LBMA), the gold fix price (otherwise known as the ‘LBMA Gold Price’ or the ‘London fix’) is a benchmark regulated by the UK’s Financial Conduct Authority (FCA).

Whilst the LBMA owns the gold fix price, it is operated by the ICE Benchmark Administration (IBA). The IBA’s role is to ‘ensure that the LBMA gold price has integrity, represents the underlying market interest for gold and complies with all applicable regulations’.

IBA administer the auction independently with prices set twice a day as the five members of the London Gold Pool come together on a conference call. The first is at 10:30am UK time each business day (the ‘London am fix’ or ‘London morning fix’). As other countries wake up and start trading gold, the fix gold price is then set again according to COMEX, a division of the New York Mercantile Exchange (NYMEX), and at 3pm UK time for the ‘London pm fix’ or ‘London afternoon fix’.

As the gold market operates 24 hours a day and therefore doesn’t have a closing price, the afternoon gold fix price is often used to indicate a closing price on any given day.

The price on the website is provided in pounds, US dollars and Euros and it’s focused on providing a price per troy ounce, the traditional unit of weight used for precious metals. It’s a term derived from the French town of Troyes, where, in the Middle Ages, the unit was first used. One troy ounce is equal to just over 31 grams.

You can visit the IBA’s website to find the gold fix price in the following sixteen currencies:

  • Australian Dollars
  • British Pounds
  • Canadian Dollars
  • Euros
  • Onshore and offshore Yuan
  • Indian Rupees
  • Japanese Yen
  • Malaysian Ringgit
  • Russian Roubles
  • Singapore Dollars
  • South African Rand
  • Swiss Francs
  • New Taiwan Dollars
  • Thai Baht
  • Turkish Lira

The Gold Bullion Co. publish the live price of gold in a chart. We use the gold fix price as a bench to allow us to remain competitive when pricing our huge range of gold bullion bars and coins.

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<![CDATA['Accidental' Sale of 1.8m Ounces of Gold]]> https://www.thegoldbullion.co.uk/blog/accidental-sale-of-1-8m-ounces-of-gold/ https://www.thegoldbullion.co.uk/blog/accidental-sale-of-1-8m-ounces-of-gold/ Sun, 09 Jul 2017 23:00:00 +0000 The price of gold plummeted towards the end of last month (26th June) when a trader ‘accidentally’ sold 1.8 million ounces of gold.

Prices hit a 5-week low of £977.65 with traders agreeing that it had likely been a mistake.

Ben Kumar, investment manager at 7 Investment Management, told the Daily Mail: “I think it always gives people a bit of pause for thought to see a market can be moved like this. It’s hard to understand how it happens, with all the checks and balances in place, but there is always the possibility that someone adds an extra zero to a trade and it has these unintended consequences.”

MKS trader Bernard Sin agreed. He told Reuters: “Clearly somebody sold it by mistake and bought it back quickly, triggering stops below $1,250.”

It could also be possible that a computer error is to blame. Traders use programming to monitor markets and buy or sell according to an extremely complicated algorithm. Whilst generally very reliable, these programs can sometimes make a mistake, leading to spikes or falls in the market - known as flash crashes - that can’t always be explained.

Tom Beckett, chief investment officer at Psigma Investment Management, told the Daily Mail: “It could be that this was a computer algorithm. There are risks to automated trading and it can lead to big spikes or falls in the market which can’t be explained.”

Speaking of such flash crashes, David Govett, head of precious metals trading at Marex Spectron Group, told Bloomberg that these swings could become more widespread given the current state of play. He added: “The more they happen, the worse they will become as people back away from holding positions."

Despite the recent volatility, investors should not be discouraged. Traders and the market as a whole are still seeing gold as a good insurance policy worth holding in a world of political instability and uncertainty.

Mr Beckett added: “Investing in gold is a sensible move at the moment, with so much political uncertainty across the world. The gold price is up almost 10 per cent since the start of the year and I expect it to go up further.”

Whilst no one can predict future prices of gold exactly, the current climate and investor response does suggest that it’s worth considering buying gold bullion as part of your portfolio.

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<![CDATA[Gold Bullion Market Update - June 2017]]> https://www.thegoldbullion.co.uk/blog/gold-bullion-market-update-june-2017/ https://www.thegoldbullion.co.uk/blog/gold-bullion-market-update-june-2017/ Thu, 29 Jun 2017 23:00:00 +0000 Gold bullion market update

The gold price started the month on 1st June 2017 at £980.76 per troy ounce, dipping below that price again a couple of times throughout the rest of the month and ending June on £957.41 on the 30th at 16:17.

Prices were seemingly unaffected following the terror attack in London on 3rd June, with gold reaching an almost 7-week high just 3 days later.

That high saw the gold price peak at £1,003.37 on 6th June after a steady climb from its lowest price in May of £943.98. The last time gold priced so well was on 18th April 2017, when it stood at £1,003.46 following a fall from the highest price of the year to date - £1,025.91 on 13th April.

Gold hit a 5-week low towards the end of the month, however, recording £977.65 on 26th June following a huge sell order that was, according to Reuters, a mistake. "Clearly somebody sold it by mistake and bought it back quickly, triggering stops below $1,250," said MKS trader Bernard Sin.

Investors looking to buy gold bullion should not be deterred, however. Sin told the news agency: "Fundamentally, there is still a lot of uncertainty in the world, with Italian bank bailouts, Trump's policies and Brexit. The world is in geopolitical chaos and gold is still good insurance."

Gold bullion coin news

With Canada celebrating its 150th birthday on 1st July, the Royal Canadian Mint released specially designed 2017-dated circulation coins as lasting keepsakes of this milestone year.

The two-dollar Canada 150 coin is the world’s first bimetallic coin and the first circulation coin to feature glow-in-the-dark technology.

The Gold Bullion Co. stock investment gold bullion coins from the Royal Canadian Mint, including those with the historic 2017 mint mark that carry a special appeal to collectors.

The iconic South African Krugerrand coin also has a birthday to look forward to in July. First produced on 3rd July 1967, it turns 50 this year and Krugerrands carrying the 2017 mint mark are also available from The Gold Bullion Co. 

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<![CDATA[Which Commemorative Coins are Worth Buying in 2017?]]> https://www.thegoldbullion.co.uk/blog/which-commemorative-coins-are-worth-buying-in-2017/ https://www.thegoldbullion.co.uk/blog/which-commemorative-coins-are-worth-buying-in-2017/ Thu, 22 Jun 2017 23:00:00 +0000 Whilst the quality and purity of commemorative coins is typically the same as other coins from the same mint, their unique designs and special mint marks lead many to see them as something just that bit more special than usual. 

They often appeal to particularly keen investors or collectors who enjoy owning 'big year' coins. It is this that could lead to them being worth more in the future – when other collectors seek out those memorable years to complete their sets.

If you’re planning to invest in gold coins and you know you’ll be holding on to them for the long-term, then commemorative coins could be a wise choice. They’ll hold their value in line with the gold price just like other bullion coins and – if you find the right buyer – they might be worth even more.

So which coins are celebrating big anniversaries in 2017?

Best commemorative gold coins to buy in 2017

2017 is proving to be an interesting one with two of the world’s most renowned mints releasing commemorative coins to celebrate big anniversaries.

The Royal Mint’s flagship coin, the gold Sovereign, celebrates its 200th anniversary in 2017 with a coin featuring an exclusive shield mint mark.

Exempt from both VAT and Capital Gains Tax (CGT), the British gold Sovereign is widely thought to be one of the best gold coins to buy.

The 2017 commemorative edition, with its bold St George and the Dragon design, is expected to be a particularly popular choice for collectors and investors alike this year.

First produced on 3rd July 1967 by the South African Mint, the gold Krugerrand coin also has reason to celebrate this year having reached its 50th year in production this July.

Where is the best place to buy gold coins?

The Gold Bullion Co. is widely considered to be one of the best places to buy gold coins online – we have over 8,700 positive customer reviews to date. Our customers trust us to deliver competitive, real-time pricing and offer an excellent service that includes fully insured delivery.

To add the commemorative 2017 Sovereign or Krugerrand to your collection, visit our online shop today.

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<![CDATA[The Benefits of Investing in Bullion Coins]]> https://www.thegoldbullion.co.uk/blog/the-benefits-of-investing-in-bullion-coins/ https://www.thegoldbullion.co.uk/blog/the-benefits-of-investing-in-bullion-coins/ Thu, 15 Jun 2017 23:00:00 +0000 Bullion coins – An overview

Bullion coins struck from precious metal are popular collector’s items and investment products.

Available in various weights as fractions of a troy ounce (the traditional unit of weight used for precious metals), bullion coins sell for a small premium over the market price of precious metals due to production and packaging costs. But there are also trends at play and unpredictable events that can further push up the value of certain limited edition coins.

Bullion coins are available in both gold and silver. Gold is well-known for holding its value during times of economic uncertainty, while there tends to be more instability in the price of silver perhaps making it more suitable for the adventurous investor.

Coins are given as gifts and are also very popular amongst enthusiasts who collect them in all of their various editions, with rare or commemorative coins proving to be especially alluring. As an example, in 2013 The Royal Mint changed the purity levels of their silver Britannia to .999, making the 2012 silver Britannia the last silver Britannia to be produced with .958 purity, potentially increasing demand among collectors.

The benefits of investing in bullion coins

Compared to gold bars, which offer investors the opportunity to store large amounts of wealth in gold, bullion coins are more popular among those looking to make a modest outlay to preserve their capital in precious metals.

One of the biggest advantages to investing in bullion coins is that many of them are exempt from Capital Gains Tax (CGT). However, not every coin is exempt so do your research before buying.

In order to meet the CGT-free criteria, the coin must be UK legal tender, so gold Sovereigns and gold and silver Britannias meet the requirements, but a South African Krugerrand does not.

The best gold coins to buy

The Royal Mint’s Sovereign and Britannia gold bullion coins are considered to be among some of the best gold coins to buy worldwide.

If you want to keep your taxes to a minimum, consider gold Sovereigns and Britannias, which are exempt from both VAT and CGT, while silver Britannias are CGT-free but still carry VAT.

Best place to buy gold coins

Remember, when you’re buying bullion coins, it’s important you seek out secure and trusted distributors who have an excellent track record and accessible independent customer reviews.

Look for coins from some of the world’s most renowned mints, such as the British Royal Mint, and check that delivery is made by a well-known courier and comes with insurance.

With thousands of positive customer reviews, The Gold Bullion Co. is widely considered to be the best place to buy gold coins in the UK. We’re reliable and offer competitive, real-time pricing based on the live spot price of gold.

Browse The Gold Bullion Co.’s collection of British gold bullion coins today.

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<![CDATA[Change In Purity Levels Marks 30th Anniversary Of 2017 Silver Britannia]]> https://www.thegoldbullion.co.uk/blog/change-in-purity-levels-marks-30th-anniversary-of-2017-silver-britannia/ https://www.thegoldbullion.co.uk/blog/change-in-purity-levels-marks-30th-anniversary-of-2017-silver-britannia/ Sun, 11 Jun 2017 23:00:00 +0000 In a bid to compete with the rest of the world’s big mints, The Royal Mint have launched a new 2017 silver Britannia coin which consists of .999 purity. First produced in 1987 and designed by Sculptor Philip Nathan, the silver Britannia also celebrates its 30th anniversary this year.

Silver bullion coins

Used to make coins for more than 2,500 years and today remaining a treasure for both producers and collectors alike, silver is a precious metal widely used in the making of bullion products.

As a Capital Gains Tax-free asset, silver Britannia coins are particularly popular amongst UK-based bullion investors. Produced in the UK by The Royal Mint, the silver Britannia has a rich history and is commonly regarded as one of the best silver bullion coins available on the market.

It is worth mentioning here that the 2012 silver Britannia, which is no longer in production, is the last available in the old purity. Containing one troy ounce of pure silver, it is struck from .958 Britannia silver (according to the historic standard set in 1697 by William III – as detailed below) and features the standing Britannia figure on the back.

Now a scarcely available coin, the 2012 silver Britannia coin is still stocked by The Gold Bullion Co. and often bought as a collectable.

From 2013, the shift was made to use .999 purity silver – as seen in the latest 2017 coin.

The history of the silver Britannia

Historically, the mandatory silver Britannia standard, set by the 1697 Parliament’s Act, was .958 purity. At the time the Act was introduced, there was a high demand for quality silverware that promoted the idea of luxury and wealth, with the clipping and melting of coinage to make such items becoming a serious problem for the Crown.

The act, signed by William III, was introduced to replace sterling silver (.925 purity) with silver Britannia and to limit the practice of clipping and melting coins with the introduction of milled coins which could not be clipped.

This revolution in coin production prompted a change of hallmarks, which saw the lion passant guardant to denote sterling silver replaced by the female figure of Britannia.

First featuring on copper coins in the seventeenth century and appearing on every British monarch’s coinage since, Britannia is the female personification of Britain and an immortal, iconic representation of the pride of the British people. Often regarded as ‘a symbol of optimism’, she embodies the changing ideals and values of Britain throughout history.

The Gold Bullion Co. stock 2017 silver Britannia coins which consist of .999 purity and are Capital Gains Tax-free. Shop now for real-time pricing that ensures the most competitive rates.

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<![CDATA[Gold bullion market update - May 2017]]> https://www.thegoldbullion.co.uk/blog/gold-bullion-market-update-may-2017/ https://www.thegoldbullion.co.uk/blog/gold-bullion-market-update-may-2017/ Mon, 29 May 2017 23:00:00 +0000 Gold bullion market update

The price per troy ounce of gold bullion started the month at £972.22 on 2nd May, down £53.96 on the highest price seen in 2017 so far.

As we stand almost at the end of the month, things have come full circle with the price edging up and expected to rise further on the back of geopolitical tensions and associated risk. Today (May 30th) the price touched £984.01 at 09:20.

May has presented various challenges. After the French election of political newcomer Emmanuel Macron as the country’s youngest-ever president on the 8th May, the gold price dipped to £943.98 – its lowest point yet this year.

Prices rose steadily again from there to a high of £970.59 on 17th May after the announcement that Robert Nueller, ex-director of the FBI, will head up an enquiry into Russia’s participation in the 2016 US election.

These small fluctuations in price are typical of the market and those who are looking to buy gold bullion should remember that gold is historically a very stable asset compared to other more volatile markets such as paper currencies, stocks and property.

In fact, the gold bullion market held steady following the release of the minutes of the US Federal Reserve’s last policy meeting – traditionally a trigger for price swings – which downplayed the chance of interest rates rising.

"We think that the precious metal has weathered the prospect of a Fed increase rather well," INTL FCStone analyst Edward Meir told Reuters

"We do see further strengthening ahead in light of what we think will be continued dollar weakness emanating from more Trump-related headaches emanating from Washington."

Remember you can track market prices with our live charts if you’re planning to buy gold bullion as an investment yourself.

 

Gold bullion market latest news

Other news affecting the precious metal this month included the announcement on the 8th May, that The London Bullion Market Association (LBMA) will be publishing the gold and silver physical precious metal holdings of the commercial London vaults from summer 2017. The announcement follows the Bank of England’s publication of its holdings, which began earlier this year.

Ruth Crowell, Chief Executive of the LBMA said: “We are delighted that the Bank of England and the commercial vaults in London have agreed to support the publication of the vault holdings. This is an important step towards greater transparency and will provide further evidence as to the size and importance of the precious metals market in London.”

The LBMA has also launched the Global Precious Metals Code, which is designed to build “greater trust, consistency and transparency throughout the market.”

All good news for an increasingly open and honest gold market.

Moving into June, all eyes will be on the UK general election as the market waits to see what the country’s next political step will be. 

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<![CDATA[South African Gold Krugerrand Coin Begins Its 50th Year At The Top]]> https://www.thegoldbullion.co.uk/blog/south-african-gold-krugerrand-coin-begins-its-50th-year-at-the-top/ https://www.thegoldbullion.co.uk/blog/south-african-gold-krugerrand-coin-begins-its-50th-year-at-the-top/ Mon, 22 May 2017 23:00:00 +0000 The South African gold Krugerrand coin reaches its 50th year in production this year, just a year after celebrating its position as the top-selling gold bullion coin in the world in 2016, with sales reportedly generating some $1.3 billion.

Demand on the increase

Demand for Krugerrand coins was particularly strong in the UK post-Brexit as investors sought to protect their wealth in the political and financial uncertainty.

Richard Collocott, the Rand Refinery’s executive head of marketing spoke to MoneyWeb: “We anticipate and we have every intention for Krugerrands to remain, if not the top-selling gold coin in the world, in the top-three.”

First produced on 3rd July 1967 by the South African Mint, the gold Krugerrand coin has generated billions in revenue, with millions of ounces of gold sold in Krugerrands.

Collocott commented: “It’s more than exceeded any expectations that could have been had at the outset.”

Investment choices

Many investors purchase gold as a way of securing their wealth in the face of economic uncertainty. As faith in paper currencies falls, gold – which is a global currency – can be expected to rise.

This effect was demonstrated following the arrival of President Trump to the White House, when the uncertainty and concerns surrounding his approach caused predictions of market volatility and sent gold prices soaring.

Most financial advisors recommend diversifying your investment portfolio, as spreading investments is a way of balancing your assets to maintain long-term wealth. Gold – whether you’re looking at coins or bullion – is a great option if you’re considering diversifying. Our complete guide to investing in gold provides a detailed overview for those new to the market.

The future of the South African gold Krugerrand coin

Dr. Ebrahim Patel, commodities strategist at Rand Merchant Bank, told the news source that “gold has a multi-millennia-year history of storing value”.

He added: “There’s a lot of political [and] geopolitical uncertainty coming into play. These are the conditions under which gold is extremely popular, because it’s a hedge against political uncertainty, a safe-haven asset.”

Patel also predicts that investments in the South African gold Krugerrand coin will increase.   

“The Krugerrand has been widely successful (as a way of getting gold exposure). It’s among the world’s most circulated bullion coins, it’s iconic … very durable. I think we are going to see its use going from strength to strength.”

View weight variations of the South African gold Krugerrand coin and live spot prices on The Gold Bullion Co. site now.

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<![CDATA[Could small gold bars be the key to investment success?]]> https://www.thegoldbullion.co.uk/blog/could-small-gold-bars-be-the-key-to-investment-success/ https://www.thegoldbullion.co.uk/blog/could-small-gold-bars-be-the-key-to-investment-success/ Wed, 17 May 2017 23:00:00 +0000 The gold market has a strong and healthy history of coming through financial downturns relatively unscathed, with its long-term stability and the intrinsic value of gold prompting many to buy gold bullion as a way of securing their wealth against potential financial turmoil.

In February, we reported that demand for investment gold is rising, with UK sales for gold bullion coins and bars increasing by 28 per cent from 2015 to 2016. This rise in sales came in the wake of a dip in the value of the pound post-Brexit as UK investors sought a way to secure their finances in the face of uncertainty.

Investors have long bought gold bullion to protect themselves against the instability of other more volatile markets, generally exchanging great sums of money for large bars of gold that guarantee the security of holding a physical asset that retains its value, or investing in gold bullion that they will never even physically hold themselves.

The downside to this approach comes when capital is needed quickly. If you find yourself in a situation where you need cash fast, larger gold bars can prove troublesome. They’re harder to sell quickly, especially if you’re interested in freeing up just a small percentage of the bar’s overall value.

Small gold bars, in comparison, are an easily realisable asset that offer the flexibility of dealing in lower increments. They offer investors the potential to portion their wealth more precisely, giving you more options should you need to access their value in an emergency.

Additionally, small gold bars are easier to store; great if you prefer to keep your gold close to hand at home. As well as having small gold bars available instantly in a crisis, keeping them at home reduces storage costs. This can benefit owners with smaller amounts of gold, although those with larger amounts should weigh up the costs of storing gold securely at home against the costs of paying for professional storage.

The crucial thing to remember when making the decision to buy gold bullion, is how quickly you might need to access the value inherent in your gold investment in the future.  

Larger gold bars provide slightly more value due to the lower fashion fees (an additional charge to cover the cost of production and packaging) but are generally only purchased when the investor is confident they won’t need access to the capital in the foreseeable future.

Small gold bars certainly, on the other hand, are a much more flexible option for those looking to buy gold bullion for short-term security. The fact that it’s much easier to realise their value, combined with reduced storage costs and direct access make them an excellent choice for many investors.

The Gold Bullion Company offers a wide range of gold bars for sale in a variety of sizes. Take a look at our stock and prices here.

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<![CDATA[Australian gold output at 17-year high]]> https://www.thegoldbullion.co.uk/blog/australian-gold-output-at-17-year-high/ https://www.thegoldbullion.co.uk/blog/australian-gold-output-at-17-year-high/ Mon, 27 Feb 2017 00:00:00 +0000 Australia produced its highest volume of gold for 17 years during 2016, according to a new survey by mining consultants Surbiton Associates.

Output reached 298 tonnes of the precious metal last year, as companies were spurred on by the high prices the commodity was making in the markets. Good foreign exchange rates also helped the increase, Surbiton said.

Director, Sandra Close, told Reuters: “Overall, the Australian dollar gold price has continued to be attractive, thanks to the combination of the US dollar gold price and favourable exchange rates.

“This has encouraged the redevelopment of previously mined areas and the refurbishment of mothballed plants, thereby pushing Australian gold output higher.”

The figure was the highest since 1999. Australia’s record production year was in 1997, when the country’s output stood at 314 tonnes of gold. However, there are concerns about the first quarter’s output for 2017 because of heavy rains in the main gold mining area of Western Australia, which has resulted in lower production.

Meanwhile, the gold price hit a four-month high last week as more investors sought a safe haven for their money. It reached a high of £1,010.25 per troy ounce at the market’s close on Friday (February 24).

It’s the highest price since Donald Trump won the US election and points to higher levels of anxiety about the economy, according to analysts.

Fawad Razaqzada, market analyst at Forex.com, told The Express: “The metal’s remarkable performance may suggest that investors are positioning themselves up for a major risk-off event – such as a collapse in the US stock markets.

"With the major US indices rising almost parabolically, it is just a matter of time before the inevitable happens."

Shares have been trading at high volumes amid Mr Trump’s promises of a new tax policy. He is due to unveil the details of the plans tomorrow (February 28).

Find out more about investing in gold with our guide. Or take a look at the latest deals on gold bullion bars.

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<![CDATA[Perth Mint predicts strong gold bullion coin and bar sales]]> https://www.thegoldbullion.co.uk/blog/perth-mint-predicts-strong-gold-bullion-coin-and-bar-sales/ https://www.thegoldbullion.co.uk/blog/perth-mint-predicts-strong-gold-bullion-coin-and-bar-sales/ Mon, 20 Feb 2017 00:00:00 +0000 Australia’s Perth Mint is predicting a year of higher sales because of continued worries about the international geopolitical situation and investors’ desire to find a safe haven for their money.

The mint is responsible for refining the majority of gold mined in Australia – the world’s second biggest gold-producing nation – and exports around 80 per cent of its gold bullion bars and coins.

It has seen strong demand so far this year thanks to high interest in its special edition Lunar New Year rooster coins, along with a drop in prices and political concerns in the US and Europe.

Group manager for minted products, Neil Vance, told Bloomberg: “Certainly in terms of geopolitical issues, we still see people moving into precious metals for that safe haven. We still see upside for having a good end to our financial year.

“We had stronger-than-normal sales in the US market and we had exceptional sales in China, so a combination of the Perth Mint brand and the design of the rooster coin made it a very popular coin.”

The mint sold higher amounts of coins and bullion bars in December and January as the price of gold fell on the inauguration of US President Donald Trump and the US Federal Reserve’s decision to increase interest rates at the end of last year. Meanwhile, the recent US travel ban on seven mainly Muslim countries has also seen a greater rallying to gold as a safe haven and helped push prices up last week.

The Perth Mint sold 72,745 troy ounces of bullion bars and coins in January compared to 47,759 a year earlier. It comes after December sales of 63,420 troy ounces compared to 40,096 in December 2015.

According to the mint’s annual report, sales of coins, bars and medallions rose threefold in 2015-16 to a record 16.22 pieces from 5.08 million the previous year.

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<![CDATA[Gold gains expected after dip]]> https://www.thegoldbullion.co.uk/blog/gold-gains-expected-after-dip/ https://www.thegoldbullion.co.uk/blog/gold-gains-expected-after-dip/ Mon, 13 Feb 2017 00:00:00 +0000 Gold lost value today (February 13) as the US dollar gained amid meetings between President Trump and Japan’s Prime Minister Shinzo Abe.

The dollar rose to its highest level this month, after the meeting, which did not discuss currency issues.

It has also been helped by Mr Trump’s announcement last week of tax reform, which the market considers likely to be tax cuts. The US President promised that he would make a statement that would be “phenomenal in terms of tax”.

Ole Hansen of Saxo Bank told Gulf News: “[The statement] helped send stocks, dollar and bond yields higher, thereby revising some of the support that earlier in the week helped send gold to a year-to-date gain of more than eight per cent.

“A correction was overdue after gold almost managed to recoup half of what had been lost during the [selloff]. Underlying demand has improved with hedge funds showing signs of returning. This after having cut net-long positions by 88 per cent from last July’s record up until early January.”

Jeffrey Halley, senior market analyst at OANDA, told Reuters: “Quietness on the protectionism front and a rekindling of the Trump-flation trade is taking the wind out of gold's safe-haven sails.”

But the wider picture is an expectation that the gold price will recover because of elections in Europe and continued concerns about Mr Trump’s policies. In addition, there were jittters in the market amid North Korea’s announcement it had successfully tested a new medium to long range missile.

Hareesh V, research head at Geofin Comtrade Ltd, said: "Prices are likely to recover again, even though there may be slight corrections. Global uncertainty from the US, Europe and on the Korean front will drive global prices high again as prices couldn't break the December-low.”

Since December, gold has added almost 10 per cent to its value. It was valued at £982.93 per troy ounce at 09:15 today.

Keep an eye on the gold price movements with our live gold price tracker.

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<![CDATA[Demand for investment gold on the up]]> https://www.thegoldbullion.co.uk/blog/demand-for-investment-gold-on-the-up/ https://www.thegoldbullion.co.uk/blog/demand-for-investment-gold-on-the-up/ Mon, 06 Feb 2017 00:00:00 +0000 Demand for investment gold rose to its highest levels since 2013 last year, according to the latest annual report from the World Gold Council.

Investors bought a total of 4,309 tonnes of bullion in 2016, a two per cent rise on 2015 thanks to a surge in gold backed exchange traded funds, the research revealed.

In the UK, the demand for gold bullion coins and bars jumped by 28 per cent to almost 11 tonnes. The figure in the UK rose after the value of the pound dipped following the Brexit vote last June, as investors looked for a secure and portable safe haven for their money.

Internationally, demand for physical gold for jewellery and investment bars and coins dipped by nine per cent. This was mainly due to the introduction of curbs on imports and higher prices in the two biggest gold buying nations of China and India. In addition, central banks reined in their gold investment by a third in 2016.

Looking ahead, the World Gold Council expects demand from China – the top gold importing nation – to improve this year. It expects China to import between 950 and 1,000 tonnes of the precious metal in 2017, compared to 2016’s figure of 913.6 tonnes. This was the lowest recorded demand in four years.

In India, demand this year is predicted to remain around the same levels. Indian consumers bought 675.5 tonnes in 2016, and are expected to purchase between 650 and 750 tonnes this year. The Indian government has introduced strict policies to try to drive down the amount of gold being imported and encourage domestic recycling of the precious metal; efforts which are now starting to show results.

Our gold coins and gold bullion track the gold price, so keeping a close on movements like this is well worth it to ensure you buy at the right point for your investment plans.

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<![CDATA[Gold bullion bars and coin sales ahead in Australia]]> https://www.thegoldbullion.co.uk/blog/gold-bullion-bars-and-coin-sales-ahead-in-australia/ https://www.thegoldbullion.co.uk/blog/gold-bullion-bars-and-coin-sales-ahead-in-australia/ Mon, 30 Jan 2017 00:00:00 +0000 High sales of gold bullion coins was an international phenomenon in 2016 as investors sought the safety of the precious metal to store their wealth and Australia was no exception.

It’s one of the latest countries to release figures confirming the trend. Figures from the Perth Mint in Australia showed that sales of both gold and silver bullion coins were up last year compared to 2015. Overall, sales of gold coins and bullion bars were 14.2 per cent ahead of 2015, at 520,295 troy ounces, up from the 455,630 ounces sold in 2015.

The strongest month for sales was October 2016, when a total of 79,048 troy ounces were moved, and after a dip in November, the year ended with strong sales of 63,420 troy ounces of coins and bars. The figure was almost 16 per cent up on a monthly basis and showed a 58.2 per cent increase on December 2015. 

The story for silver bullion coins and bars was strong too in 2016. The Perth Mint sold a total of 12,236,766 troy ounces last year, a rise of 5.5 per cent on the previous year and up by 61.7 per cent from the 7,567,467 troy ounces shifted in 2014. The busiest month for silver sales was March 2016, when the mint sold more than 1.7 million troy ounces, Coin News reported. 

Meanwhile, gold itself was down in value last week, marking its first weekly loss of 2017 as the US dollar rose in value by 0.2 per cent. 

ING analyst Hamza Khan told Reuters: "The dollar is being a big influence on gold right now, so that's what's behind the current move.

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<![CDATA[Trump effect sends gold price soaring]]> https://www.thegoldbullion.co.uk/blog/trump-effect-sends-gold-price-soaring/ https://www.thegoldbullion.co.uk/blog/trump-effect-sends-gold-price-soaring/ Mon, 23 Jan 2017 00:00:00 +0000 The arrival of President Donald Trump in the White House to take up the reins has helped the gold price surge to its highest levels for two months.

Concerns about the direction of the new US President’s economic policies and a fall in the value of the dollar saw the price of bullion hit £1,001.34 per troy ounce at the close of play on Friday. Today (Monday January 23) it stood at £974.05 at 09:00.

Analysts are expecting market volatility which could spell another golden patch for the precious metal’s value, due to ongoing uncertainty. According to OCBC analyst Barnabas Gan, this could continue for the first 100 days of the new presidency, Reuters reported.

Markets are concerned about President Trump’s protectionist statements and promises of spending increases and tax cuts, which will increase gold’s attraction as a safe haven for investors.

HSBC analyst James Steel said: “The incoming US administration is still a relatively
unknown factor, certainly in comparison to other incoming administrations in recent decades.”

Meanwhile, although the Philadelphia Federal Reserve President Patrick Harker said he expects the cost of borrowing to rise three times this year, depending on the US’s economic performance, this may not be until later in the year. Generally, when interest rates rise, the price of gold falls. 

INTL FCStone analyst Edward Meir said: “Tone set by Trump will likely lead the markets to conclude that Trump's legislative goals may now be harder to achieve as there will not be much bipartisan goodwill or a honeymoon period to work with.

“All this means is that investors could now start to coalesce around the notion that the Fed will stay on hold for longer than expected, which in turn should be constructive for
gold.”

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<![CDATA[Strong start to the year for 2017 US Mint coins - Gold Bullion]]> https://www.thegoldbullion.co.uk/blog/strong-start-to-the-year-for-2017-us-mint-coins-gold-bullion/ https://www.thegoldbullion.co.uk/blog/strong-start-to-the-year-for-2017-us-mint-coins-gold-bullion/ Mon, 16 Jan 2017 00:00:00 +0000 A new year means new editions of gold bullion coins to collect and the US Mint is reporting a higher first day demand for its 2017 American Eagles than last year’s variation.


Available in four sizes, ranging from one troy ounce to one-tenth of a troy ounce, a total of 68,000 ounces were sold on January 9, the first day they became available. The figure is 8,000 higher than in 2016, or up around 15 per cent.

The most popular was the one troy ounce American Eagle, which sold 46,000 compared to 41,500 first day sales a year earlier. There were also improvements in the half-ounce sales, up to 16,000 from 12,000; quarter ounce coins sold 26,000 compared to 22,000 in 2016; and the tenth of an ounce variety shifted 75,000 coins compared to 70,000 the year before.

However, fewer buyers were tempted by the one troy ounce Buffalo coin, which sold 20,500 on its first day – 500 fewer than on its initial release in 2016. However, it shifted a further 2,000 on its second day of sales, Numismatic News reported.

The strong demand wasn’t just limited to gold bullion coins; collectible silver coins also had better first day sales in 2017 than they did in 2016. This year, official buyers snapped up 3,747,500 silver American Eagles – a rise of 35 per cent on the previous year.

The high demand from buyers to start the new year comes after a good performance at the start to 2016 when a total of 5,954,500 silver American Eagles, 124,000 ounces of Gold Eagles and 34,000 Gold Buffaloes were sold during January.

Last year, 985,000 ounces of American Eagle coins were sold – the highest number since 2011 -  219,500 American Buffaloes were shifted, marking the coin’s fourth most successful year, and the silver American Eagle had its fifth most successful year on record with 37.7 million ounces sold.

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<![CDATA[Strong start to the week for gold - Gold Bullion]]> https://www.thegoldbullion.co.uk/blog/strong-start-to-the-week-for-gold-gold-bullion/ https://www.thegoldbullion.co.uk/blog/strong-start-to-the-week-for-gold-gold-bullion/ Mon, 09 Jan 2017 00:00:00 +0000 Gold has started the year with gains, hitting monthly highs last week and adding almost two per cent to its value.

However, market analysts are warning investors that the surge is likely to be halted because the US Federal Reserve is on course to raise interest rates. When the cost of borrowing rises – pointing to improvements in the economy – the value of gold usually falls.

Mark To, from Kong Kong-based Wing Fung Financial Group, told Livemint: “Some kind of rebound in gold prices is still in place.

“However, the impact of monetary policy changes like rising US interest rates will be felt gradually and the quick rebound in gold price should be finished.”

The regional presidents of the Fed are due to speak about the US’s economic prospects this week and its chair Janet Yellen will be giving her views in a webcast on Thursday (January 12).

Chicago Federal Reserve President Charles Evans has already said it’s possible that rates could be raised three times during 2017. That would mark a quicker schedule of increased borrowing costs than the markets were expecting in late 2016.

At 09:30 today (Monday January 9), gold was valued at £969.61 per troy ounce, up from last week’s highs that hovered around the £950 mark. Bullion prices are currently around five per cent higher than they were in mid-December, when the precious metal shed value after a strong year.

The current high prices could mark a good time to sell if you have built up your investment over the last few years. Conversely, if you’re seeking to start a gold investment, it’s worth watching the market’s reactions to this week’s forthcoming announcements on interest rates in the US which could see bullion drop in price.

“As long as the US economic data is good, people are expecting rate hikes to be more hawkish,” said Mr To.

The inauguration of President Elect Donald Trump later this month is also expected to bring waves to the gold market, making January an interesting month for traders.

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<![CDATA[Gold price rises 8.6 per cent in 2016 - Gold Bullion]]> https://www.thegoldbullion.co.uk/blog/gold-price-rises-8-6-per-cent-in-2016-gold-bullion/ https://www.thegoldbullion.co.uk/blog/gold-price-rises-8-6-per-cent-in-2016-gold-bullion/ Mon, 02 Jan 2017 00:00:00 +0000 The gold price finished 2016 8.6 per cent higher than it started, the first time it has increased on an annual basis for three years.

It’s been a mixed year for bullion; most of the precious metal’s gains came in the first half of the year and the gold price actually ended 2016 16 per cent down on the highs achieved in July. The price was boosted by the UK’s vote to leave the European Union in June, but the victory of Donald Trump in the US presidential elections sent bullion’s value in the opposite direction.

Analysts say the behaviour of investors defied conventional wisdom, and while the gold price did benefit from savvy buyers looking for a safe haven for their money during some of the more turbulent points in the year, the picture has been difficult to predict. Monetary easing by central banks and negative interest rates, as well as political events, created an environment in which it wasn’t always easy to identify in which direction the gold price would go.

The market is expecting a similarly hard to forecast picture over the next 12 months, although there is a strong expectation that the US Federal Reserve will raise interest rates which usually signals a retreat from gold.

Bob Haberkorn, a broker at RJO Futures, told the Wall Street Journal:  “Any talk of rate increases is tough for gold. If you have people expecting three or four increases, that’s enough to keep the pressure on all year.”

However, other analysts believe bullion could enjoy another year of gains thanks to the uncertainty posed by elections in 2017 in Germany, France and the Netherlands. Plus, UBS Wealth Management forecasts that the shrinking gap between US growth and other countries will see the value of the dollar fall and the price of gold rise. It’s certainly shaping up to be an interesting year for gold bullion investors.

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<![CDATA[Scottish gold coins under the hammer - Gold Bullion]]> https://www.thegoldbullion.co.uk/blog/scottish-gold-coins-under-the-hammer-gold-bullion/ https://www.thegoldbullion.co.uk/blog/scottish-gold-coins-under-the-hammer-gold-bullion/ Mon, 12 Dec 2016 00:00:00 +0000 Eleven gold coins, weighing one troy ounce each, have sold at auction for a total of just under £46,000.

The high prices achieved were due to the rarity of the coins. They are the first new coins made from Scottish gold to be sold in decades and were created to raise funds towards a new gold mining operation in the Highlands.

Scotgold Resources is aiming to begin mining Scottish gold at Cononish beside Loch Lomond. Its plans have been delayed for a number of years and the site was mothballed in 2007. Although the project received backing from Australian investors, the site was also subject to environmental and landscape assessments before permission for mining was granted.

Profits from the sale of the limited edition coins will be used for further investment in the mine. The coins each feature a stag’s head and the most expensive went under the hammer for £21,003.

It was one of two bought by Scotgold shareholder Graham Donaldson, who is originally from near Glasgow but now lives in Dorset.

He told The Guardian: “As to what I would do with it now, I would probably look at it and stroke it, and put it in a safe.”

Scotgold has big plans for its mine, aiming to tap into niche demand from jewellers for Scottish gold for wedding and engagement rings. The site is also located in a popular tourist area and the company is planning to open a visitors’ centre, where people will be able to buy gold produced by the mine.

Mr Donaldson is already planning to renew his and his wife’s wedding rings and commission a new engagement ring made from Scottish gold when the mine is operational.

Like the gold coins, the rarity of jewellery made from Scottish gold means that the bullion produced at the site will attract premium prices.

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<![CDATA[Gold bullion price leap forecast by Chinese analysts]]> https://www.thegoldbullion.co.uk/blog/gold-bullion-price-leap-forecast-by-chinese-analysts/ https://www.thegoldbullion.co.uk/blog/gold-bullion-price-leap-forecast-by-chinese-analysts/ Mon, 05 Dec 2016 00:00:00 +0000 The price of gold bullion is forecast to rise strongly in 2017, according to analysts in China – the world’s biggest gold buyer.

Continued political uncertainty is likely to lead to leaps in the price per troy ounce that could be as high as 25 to 50 per cent.

Haywood Cheung Tak-hay, the honorary permanent president of the Chinese Gold and Silver Exchange Society, pointed to this year’s events – the UK’s Brexit vote, the election of Donald Trump as the next US President – and the effect they have had on increasing gold’s attraction as a safe haven investment.

He told the South China Morning Post: “The political uncertainties are likely to continue to haunt investment markets next year. There are presidential elections in France, Germany and the Netherlands. These will all introduce uncertainties in the market.”

His view was echoed by Joseph Tong Tang, chairman of Morton Securities, who pointed to turmoil in Europe with the possibility of more countries seeking to break away from the EU.

He said: “The disintegration of the European Union would endanger the future of the euro. We will see more uncertainties in the European market and the euro zone.”

This morning (Monday December 5), Italian Prime Minister Matteo Renzi resigned from his post after losing a referendum on reforming the country’s constitution. In another surprise political move, New Zealand’s John Key also announced he was stepping down due to family reasons.

These latest moves have not yet pushed up the price of bullion, with gold valued at £915.93 per troy ounce at 10:45, although there may be changes later when the US markets begin trading.

In China, the yuan currency has lost seven per cent of its value this year, following last year’s five per cent decline. Analysts believe this devaluation will also continue to push investors in the direction of gold bullion.

Jasper Lo Cho-yan, chief executive of King International Financial Holdings, said: “The price of gold will reach US$1,800 per ounce [in 2017], I believe, up about 50 per cent this year.”

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<![CDATA[Gold bullion markets volatile]]> https://www.thegoldbullion.co.uk/blog/gold-bullion-markets-volatile/ https://www.thegoldbullion.co.uk/blog/gold-bullion-markets-volatile/ Mon, 28 Nov 2016 00:00:00 +0000 Gold rose in early trading today (Monday) following a fall in the price of the precious metal which reached its lowest point in more than nine months, thanks to the strength of the US dollar. 

However, the US currency has this week lost some of its value against a basket of global currencies, helping propel gold bullion higher. 

At 09:48 this morning (Monday 28 November), gold was valued at £958.58 per troy ounce, rising by around £10 since the market’s opening. 

ANZ analyst Daniel Hynes told Reuters: “The dollar strength has eased somewhat and we may be seeing some buying interest re-enter the market.

“There has been some heavy selling over the past couple of weeks, so there may be a touch of technical-based buying.”

Gold has suffered in recent weeks as the market bets on expansion and growth under President Elect Donald Trump, which is likely to lead to inflationary pressures. 

The almost universal forecast that the US Federal Reserve will raise the cost of borrowing at December’s meeting has also affected sentiment for the precious metal. When the cost of borrowing is higher, the value of gold tends to fall and vice versa. 

Meanwhile, the Indian gold markets have reopened for business after being closed for 16 days as part of the government’s investigation into alleged profiteering and tax evasion.

The Indian government has been carrying out the surveys after demonetarising high value notes. On the reopening of the markets, both the gold and silver prices dipped. 

The global gold market is likely to be an interesting one to watch over the coming weeks, with the combination of the new President Elect, the US Federal Reserve meeting, and action on the Asian markets all having an impact.

The greater volatility that is now being seen in the world markets could make this an opportune time to buy gold. After the almost constant high prices experienced earlier in the year, there may be opportunities for bargain hunters who were wary of investing at the top of the market.

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<![CDATA[Opportunity for bargain hunters as gold price hovers around half-year lows]]> https://www.thegoldbullion.co.uk/blog/opportunity-for-bargain-hunters-as-gold-price-hovers-around-half-year-lows/ https://www.thegoldbullion.co.uk/blog/opportunity-for-bargain-hunters-as-gold-price-hovers-around-half-year-lows/ Mon, 21 Nov 2016 00:00:00 +0000 Physical gold buyers looking for a bargain helped the gold price bounce back in early trade today (Monday November 21) after the precious metal fell to its lowest value in five and a half months at the close of last week.

Following a strong year of rising prices, now may be the time to buy, as gold has lost 5.4 per cent of its value during November. Analysts pointed to jitters in the market surrounding the US Presidential election and firm forecasts that the US Federal Reserve will raise interest rates at its December meeting.

ANZ analyst Daniel Hynes told Reuters that the price may slip further in the run-up to the interest rate setting meeting.

He added: “The low prices have induced some interest in the physical market. However, the dollar has got some momentum behind it and until a turnaround, it is going to be difficult for gold prices to recover.”

Gold had been expected to gain in value following the election of Donald Trump as the next US President, due to his lack of political experience. However, according to Motley Fool, his economic policies to increase growth via lower taxes and infrastructure spending have pushed investors away from the precious metal in the weeks after his victory over Hillary Clinton.

In today’s trade, gold bounced back from Friday’s low of £971.66 per troy ounce to £977.95 at 09:15 this morning. Buying in the Asian market overnight helped bullion to claw back some ground.

India, the world’s second biggest gold-buying nation, has withdrawn higher value currency notes from circulation, leading to concerns the government may reduce the amount of bullion being imported. That’s led to a surge in buying physical gold by jewellers.

With prices currently among the lowest the market has experienced for some time, it may be worth investing now to take advantage.

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<![CDATA[Gold makes gradual gains after falling to five-month low]]> https://www.thegoldbullion.co.uk/blog/gold-makes-gradual-gains-after-falling-to-five-month-low/ https://www.thegoldbullion.co.uk/blog/gold-makes-gradual-gains-after-falling-to-five-month-low/ Mon, 14 Nov 2016 00:00:00 +0000 Gold began to recover some ground this morning (Monday November 14) after closing last week at its lowest price in five months.

The precious metal fell to a low point of £966.86 per troy ounce at 05:15 this morning but had begun to claw back gains to be valued at £978.04 per troy ounce by 08:45.

Bullion’s lacklustre performance last week is because of the strengthening dollar and widespread forecasts that the US Federal Reserve will increase the cost of borrowing at its December meeting. 

Jeffrey Halley,senior market analyst at OANDA, told Reuters: “The rate hike in December is an absolute done deal now.”

Gold had been widely expected to make gains after the shocks sent through the global markets by the election of Donald Trump as US President. Investors were expected to flock to buy bullion due to its traditional strength as a safe haven investment in turbulent times. 

Indeed, it rose to £1,005.63 per troy ounce in the early hours of Wednesday morning as it became apparent Trump was going to win.

However, Halley said: “What we're seeing today is the continuation of long liquidation going through the market.

“People seem to have unwound their Trump-risk and are now talking more about ‘Trumpflation', with Trump's fiscal policies that he wants to enact with all this infrastructure that would push up inflation and that would push up borrowing rates and yields in the States.”

Analysts are now expecting Mr Trump’s election to lead to the cost of borrowing rising faster than had been anticipated. The Fed’s chair, Stanley Fischer told the markets on Friday that growth prospects are now strong enough to handle a gradual rise in the cost of borrowing. 

Generally, when interest rates rise, it signals a steady economy and the gold price falls as investors opt to put their money in more risky ventures instead of the safe haven that the precious metal provides.

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<![CDATA[US election drama tipped to lead to rapid rise in gold price]]> https://www.thegoldbullion.co.uk/blog/us-election-drama-tipped-to-lead-to-rapid-rise-in-gold-price/ https://www.thegoldbullion.co.uk/blog/us-election-drama-tipped-to-lead-to-rapid-rise-in-gold-price/ Mon, 07 Nov 2016 00:00:00 +0000 The gold price is set to be the winner this week, no matter who emerges victorious from the US Presidential Election. 

The market is expecting a race to the safe haven commodity, with the gold price forecast to rise by as much as $200 if Republican candidate Donald Trump wins, and by $100 if his Democrat rival Hillary Clinton is elected. 

Bron Sucheki of Monetary Metals told ABC: “Gold is a classic asset class that investors run to when there's any uncertainty. I think the US election sure meets the definition of uncertainty if ever there was one.

"The uncertainty isn't just about the election outcome, but even after the election, how will the new president deal with the potentially hostile Congress and whether they'll be able to get their policies through."

He predicted that the rush to buy gold would not just be from Western buyers but the traditional large bullion buying countries of China and India will also increase their spending on the precious metal.

This morning, (Monday 7 November), the gold price was £1,036.86 at 09:15, down from last week’s high of £1,062.01, which it hit on Wednesday (November 2). If the analysts are correct, there should be a rapid jump in the price as the market gets into its swing. It’s worth keeping an eye on gold’s value if you are looking to buy or sell today, to try to find the optimum moment to make your deal.

However, gold’s gains on the back of the US Election are predicted to continue after the drama of the election itself. Independent analyst Saul Eslake believes if Mr Trump is elected, the economic uncertainty will increase and is likely to lead to a drop in the value of the dollar and a rise in the value of safe haven gold.

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<![CDATA[Can gold maintain 2016's spectacular gains in 2017?]]> https://www.thegoldbullion.co.uk/blog/can-gold-maintain-2016-s-spectacular-gains-in-2017/ https://www.thegoldbullion.co.uk/blog/can-gold-maintain-2016-s-spectacular-gains-in-2017/ Mon, 31 Oct 2016 00:00:00 +0000 Investors and analysts are now looking ahead to 2017 and asking whether gold will continue with the spectacular gains it has made in 2016.

Sentiment appears to be against the likelihood of a similar year for the precious metal as we’ve seen in 2016, when the price has soared by around 20 per cent. That’s one of gold’s best performances since 1980.

The uncertainties that have pushed up the price of bullion are expected to ease. The dollar is gaining in strength as a result of the weakness of the pound following the UK’s Brexit vote; the US Federal Reserve is now widely forecast to increase US interest rates in December; and Hillary Clinton is pulling ahead of Donald Trump, albeit narrowly, in the race for the White House.

But over the longer term, the yellow metal still has plenty of lustre to attract investors. Although the economic picture may be brightening in the US and the political uncertainty that has dogged the country during this presidential election year appears to be easing, that is not the case everywhere. Globally, many countries are still implementing monetary easing policies leading to a weakening of their currencies. In addition, a number of developed countries’ interest rates are in negative territory. These issues all add to gold’s attraction as a safe haven investment over the longer term.

There is also the factor of fashion. According to the Hindu Business Line, “gold as an investment is back in vogue with surge in demand for gold ETFs (exchanged traded funds), bars and coins. If prices rally, investment demand will only rise further, taking prices higher”.

So, although bullion may not rise at the rapid rate it has done so far this year, gold appears likely to remain an important investment option in the months ahead. But always remember, the gold price can fall as well as increase, and watching the market carefully should be a key part of your investment strategy.

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<![CDATA[US gold coin sales set to break 2015 sales totals]]> https://www.thegoldbullion.co.uk/blog/us-gold-coin-sales-set-to-break-2015-sales-totals/ https://www.thegoldbullion.co.uk/blog/us-gold-coin-sales-set-to-break-2015-sales-totals/ Mon, 24 Oct 2016 23:00:00 +0000 Authorised buyers have purchased a total of 768,000 troy ounces of the US Mint’s flagship 2016 American Eagle gold bullion coins so far this year, according to the latest figures.


The figure is the total of one ounce, half, quarter and one tenth of an ounce versions of the bullion coin, with 24,000 ounces sold in the most recent weekly update. The coin is currently marking its 30th anniversary since its introduction.


Total sales so far for the 2016 American Buffalo one troy ounce gold coins stand at 163,000, with 5,000 purchased in the latest weekly statistics, Coin Update reported.


In what has been a volatile year in the US, with the race for the White House helping to increase the popularity of gold as a safe haven for investors, it looks likely that sales of both types of bullion coin will surpass last year’s figure. In 2015, 801,500 ounces of Gold Eagles and 220,500 ounces of Gold Buffalos were sold.


The Mint sells directly to authorised buyers – or official dealers – who then sell the coins on to the public. The high levels sold this year are evidence of the strong appetite among investors for gold bullion coin collecting.


Gold bullion coin collecting is a popular way to invest in gold. As well as the intrinsic value of the gold contained in the coin, investors are often able to make an additional profit on the rarity of their coins when they come to sell.


As well as gold coins, the US Mint also produces investment coins in silver and platinum. Already this year, the total mintage for coin of all precious metals is ahead of last year, which stood at 212,000.


Figures released by the Mint also showed that 2016 currently has the second-highest production of the highly valuable five ounce America the Beautiful gold coins after 2011, when it made 465,100 pieces.

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<![CDATA[Market watches trade carefully as dollar gains leave gold price flat]]> https://www.thegoldbullion.co.uk/blog/market-watches-trade-carefully-as-dollar-gains-leave-gold-price-flat/ https://www.thegoldbullion.co.uk/blog/market-watches-trade-carefully-as-dollar-gains-leave-gold-price-flat/ Sun, 16 Oct 2016 23:00:00 +0000 Gold investors will be watching the markets carefully this week after the precious metal ended last week flat following a rise in the value of the US dollar.

There is no market data that is likely to impact on the price of bullion due until the end of the week, when the US Federal Reserve Chair Janet Yellen is due to speak at the Boston Fed economics conference.

There is strong sentiment in the market that the Fed will raise US interest rates before the end of the year, which tends to make gold investments less attractive to investors.

Ronald Leung of Lee Cheong Gold Dealers in Hong Kong told Reuters: “There are a

lot of expectations of a Fed rate hike in December, which will be bearish for gold.”

INTL FCStone analyst Edward Meir added in a note: “We think its (Federal Reserve's) rate hiking trajectory will remain very much intact.

“As a result, the dollar will likely push higher going into year-end, offering gold its most formidable headwind and even countering the impact of weaker equities.”

Mr Leung pointed out that uncertainty – which is good for the price of gold – is likely to continue in the run up to the US Presidential election in November. If Hillary Clinton is victorious, he believes the US currency could rise further and reduce the gold price. However, that is without taking into account any unexpected geopolitical events which may happen in the interim.

A pause in the high prices of gold seen throughout the year would mark a good time to buy, but the price remains strong for those who have held their bullion for some time and are looking to make a profit.

In other precious metals news, silver, platinum and palladium all closed the week down in value.

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<![CDATA[Gold price rebounds after falling to lowest level since June]]> https://www.thegoldbullion.co.uk/blog/gold-price-rebounds-after-falling-to-lowest-level-since-june/ https://www.thegoldbullion.co.uk/blog/gold-price-rebounds-after-falling-to-lowest-level-since-june/ Sun, 09 Oct 2016 23:00:00 +0000 Gold jumped back in early trade today (Monday 10 October), following its worst week since June when it lost value in eight consecutive trading session.

Today at 07:45, the precious metal was selling for £1,021.49 per troy ounce, after falling to a low of £989.37 last week.

Analysts said the price was lifted by Chinese buyers returning to the market after the holidays, a weaker dollar and expectations in the market that further increases in interest rates in the US this year will be gradual. 

Richard Xu, of Chinese gold exchange traded fund HuaAn Gold, told Reuters: “Gold prices are quite appealing after the recent correction. In China, what we see today (after a week-long holiday) is that there is some demand to buy gold following its dip.”

The improved prices came after last week’s big jump in the price of the US dollar, which hit its highest levels since the end of last year. When the dollar rises in value, gold tends to lose value and vice versa.

The dollar was up after strong statistics on US manufacturing and employment, which suggested that the cost of borrowing would be increased before the end of the year. Higher interest rates increase the cost of holding gold, which is a non-yielding commodity. 

However, a crash in the value of the pound at the end of last week, which dipped to its lowest level in three decades as traders worried that the UK will go for a ‘hard Brexit’ from the EU, helped to restore some value to the precious metal. 

Investors will be watching the markets, and world events, closely this week to see what direction gold will take. If you’re looking to begin a gold investment, there may be the opportunity to get in at a slightly lower price than has been the norm for much of the year.

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<![CDATA[Dip in gold price offers opportunity to investors]]> https://www.thegoldbullion.co.uk/blog/slight-fall-in-gold-price-offers-opportunity-to-new-investors/ https://www.thegoldbullion.co.uk/blog/slight-fall-in-gold-price-offers-opportunity-to-new-investors/ Sun, 02 Oct 2016 23:00:00 +0000 The gold price dipped in early trade today (Monday October 3), as economic turmoil in the markets calmed down.

Investors had been heading to bullion as a safe haven amid concerns about Deutsche Bank, which is negotiating with authorities in the US over the level of its fine after it was found to have mis-sold mortgage-backed securities.

But Jeffrey Halley, senior market analyst at OANDA, told Reuters that “everything seems to have calmed down substantially including Deutsche Bank and OPEC production cuts,” so that gold is less attractive to investors.

On Monday at 09.00, gold was valued at £1,024.11 per troy ounce.

It’s likely that there will be no great rally in the gold price this week, because the biggest buyer – China – will not be involved in trade. The Chinese markets are closed until October 9 for National Day Holidays.

HSBC analyst James Steel said in a note: “We see no major investor enthusiasm for gold and prices may have to ease.

“Gold's best near-term chance of a rally would more likely come from an oil surge or a deterioration of the financial situation in Europe.”

There are currently mixed signs coming from the US which have made it more difficult to call whether the US Federal Reserve will raise interest rates at its next meeting. Although US consumer spending was down, there were also signs that inflation may be picking up.

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<![CDATA[US Presidential debate for gold direction]]> https://www.thegoldbullion.co.uk/blog/analysts-await-us-presidential-debate-for-gold-direction/ https://www.thegoldbullion.co.uk/blog/analysts-await-us-presidential-debate-for-gold-direction/ Sun, 25 Sep 2016 23:00:00 +0000 Analysts are expecting the gold price to increase if US Presidential hopeful Donald Trump appears to take a lead over rival Hillary Clinton in today’s (Monday September 26) first Presidential debate.

Investors will be watching the debate carefully for signs of who is likely to be the front runner. The uncertainty surrounding Republican candidate Donald Trump is widely predicted to send investors heading for the safe haven of gold supplies if he appears to be ahead in the race.

NAB analyst Vyanne Lai told Reuters: “If Trump is perceived to have an improved probability of winning the Presidential race, that is likely to be supportive of the gold prices, so we could see (gold) prices rallying in the short term amid higher volatility.”

Other factors that are continuing to affect the price of the precious metal include the ongoing speculation over whether the US will raise interest rates again this year. The price of gold tends to be sensitive to rising interest rates.

At the end of last week, a spilt between policymakers in the rate-setting Federal Reserve seemed to appear, with the Boston Federal Reserve President Eric Rosengren telling reporters he believes the cost of borrowing should only be increased gradually. Members of the Fed seem to be split on the outlook for US employment when deciding whether to increase rates.

Analysts generally expect the Fed to hold off from a further rate rise in its November meeting, which is less than a week before the US presidential election. However, the cost of borrowing could still be increased in December when the markets have had time to settle and assess the new president-elect.

Gold started this week well, maintaining the strong prices it saw at the end of last week. At 09:15 GMT this morning, it was valued at £1,033.20 per troy ounce.

It comes after a strong end to last week, when the precious metal achieved its biggest weekly gain since July. 

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<![CDATA[Gold price soars ahead of financial meetings]]> https://www.thegoldbullion.co.uk/blog/gold-price-soars-ahead-of-financial-meetings-gold-bullion/ https://www.thegoldbullion.co.uk/blog/gold-price-soars-ahead-of-financial-meetings-gold-bullion/ Sun, 18 Sep 2016 23:00:00 +0000 Gold hit fresh highs this morning (Monday September 19) ahead of meetings this week at the Bank of Japan and the US Federal Open Market Committee (FOMC).

At 08:30 this morning, gold was valued at £1,008.67 per troy ounce, jumping back from a dip over the weekend.

Investors will be watching the US Federal Reserve’s two-day meeting carefully. The Fed will announce on Wednesday whether it is raising interest rates – something most market analysts are not expecting to happen until December.

The Bank of Japan also holds its monetary policy meeting on Wednesday, when it is expected to take some easing measures although it is not clear yet what these may be.

MKS Group told Bullion Desk: “The [precious] metals are likely to trade heavily leading into the FOMC meeting this week and may see whippy price action around Wednesday’s BoJ announcement.”

The US Consumer Price Index (CPU), which measures inflation, was up in August ahead of market expectations. However, analysts are still confident that the cost of borrowing will not be raised in the US until the end of the year.

ANZ Research spoke to the news source: “We see the CPI figures as not being enough for a September Fed hike, but leaving a December hike odds-on and bolstering the case for drawing some battle lines, shifting the market away from liquidity-driven support to the economic fundamentals. That’s an environment where volatility will remain elevated.”

Investors also turned to gold for its safe haven properties following a bomb blast in New York on Saturday, in which 29 people were injured. It has increased concerns about terrorism attacks in the city, where global leaders are meeting for the 71st session of the UN General Assembly.

The gold rally extended to other precious metals, with silver, platinum and palladium making gains in strong trade.

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<![CDATA[US Mint launch limited edition collectible coin]]> https://www.thegoldbullion.co.uk/blog/us-mint-launch-limited-edition-collectible-coin-gold-bullion/ https://www.thegoldbullion.co.uk/blog/us-mint-launch-limited-edition-collectible-coin-gold-bullion/ Sun, 11 Sep 2016 23:00:00 +0000 Gold bullion coin collectors can now snap up a highly anticipated coin from the US Mint.

The 2016-W Standing Liberty Centennial quarter ounce gold coin has been produced 100 years after the first Standing Liberty quarter.

It is the second of three limited edition collectible coins being produced this year to mark the 1916 renaissance in US coin production.

The first, released in April, was the Gold Mercury dime. Just 125,000 of the coins were made and were limited to sales of 10 coins per household. It sold out in less than an hour.

There are fewer Standing Liberty quarters being produced, with a run of just 100,000 making them even more collectible. Buyers are limited to one per household and around half of the run was sold on the first day the coin was available.

The original 1916 Standing Liberty quarter was made from 90 per cent silver and 10 per cent copper but the new edition is .9999 fine 24 carat gold. It weighs in at a quarter of a troy ounce, symbolising the type of coin it is.

The final coin in the commemorative trio, the 2016-W Walking Liberty Half-Dollar Gold Coin will go on sale before the end of the year.

Collecting coins that are only produced in limited edition numbers is a great way to add extra value to your gold investment. The comparative rarity of the coins adds to the worth of the gold they contain and makes them much more desirable for collectors, especially over the longer term.

If you are buying rare or collectible gold bullion coins, always make sure you’re doing so from a reputable dealer so you know you are buying the genuine article. The Gold Bullion Co has been established for more than 20 years and the prices you pay for coins reflects the up to the minute gold price.

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<![CDATA[Rising gold price persuades people to recycle their old jewellery]]> https://www.thegoldbullion.co.uk/blog/rising-gold-price-persuades-more-people-to-recycle-their-old-jewellery/ https://www.thegoldbullion.co.uk/blog/rising-gold-price-persuades-more-people-to-recycle-their-old-jewellery/ Tue, 06 Sep 2016 23:00:00 +0000 The rally in the price of gold that has been seen in 2016 has persuaded more and more people to look out their unwanted or broken jewellery to trade in.

Increasing numbers of people are now sending gold for recycling, after a slowdown that had lasted for three years. But now that the gold price is on the up – and looks set for its biggest gain in a year since 2010 – it’s bringing much needed gold for recycling back on to the market.

The recycled or scrap gold part of the market is so important because around a third of the global supply of bullion comes from recycled gold.

Figures from the World Gold Council show that when the gold price fell from record highs in 2011, the amount of the precious metal being recycled plummeted. Last year, it hit its lowest level in eight years.

However, the jump in the price of gold this year has seen a 10 per cent rise in the amount of scrap gold being recycled.

Baird & Company, which melts down scrap gold for clients around the UK, is now planning to increase the size of its refinery in London.

Executive director, Tony Dobra, told The Independent: “We’ve un-mothballed parts of our plant.

“When prices were lower, we struggled to get enough material to meet demand. Now we’re seeing double the volume we did a year ago.”

So if you want to make the most of the high gold prices, it’s worth hunting out any old gold jewellery you no longer want or wear, and converting it to cash while the market is on a high. Although the scrap gold price is never as high as the gold price per troy ounce, it rises in tandem and it’s currently riding high.

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<![CDATA[Gold price - are there more increases to come?]]> https://www.thegoldbullion.co.uk/blog/gold-price-are-there-more-increases-to-come/ https://www.thegoldbullion.co.uk/blog/gold-price-are-there-more-increases-to-come/ Sun, 04 Sep 2016 23:00:00 +0000 Gold has been one of the very best performing investments this year, with the eight best performing funds of 2016 all gold funds.

Poor global growth, concerns about the Chinese slowdown, Brexit and the forthcoming US Presidential elections have all pushed savvy investors towards the precious metal, resulting in a strong price for most of this year.

But is the gold rally sustainable? Some investors may now be looking to sell to cream off profits at the top of the mark, but there could still be further rises in the price of gold. Much depends on outside influences and how the markets react to them.

Michelle McGrade of TD Direct Investing told the Daily Telegraph: “The price is up by 16 per cent over 12 months and so some profit taking could be a clever thing to do.”

However, Nick Peters, a portfolio manager with Fidelity, believes gold will continue to have an important part to play in investors’ portfolios.

He said: “Although we have seen a significant rally in gold, I think investors should still consider an allocation to the precious metal.

“Gold can function as a safe haven during times of market volatility and provide strong countervailing returns to shares.”

It is this safe haven aspect that has appealed so much to investors during 2016. With volatility in stock markets and world events, the precious metal has again shown its traditional worth as safe place to store money. Although there are not the potential high returns from gold that other more risky investments can offer, gold does not tend to lose its value in the same way.

Mr Peters added: “Gold has benefited just as much from an easing in headwinds as any support from jittery investors. With yields [on other assets] expected to remain lower for longer, the traditional drawback of gold, that it yields nothing, is less of an issue.”

Reviewing your own gold investments? View our gold bullion here.

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<![CDATA[F1 gold coins are a racing certainty for investors]]> https://www.thegoldbullion.co.uk/blog/collectible-f1-gold-coins-are-a-racing-certainty-for-investors/ https://www.thegoldbullion.co.uk/blog/collectible-f1-gold-coins-are-a-racing-certainty-for-investors/ Mon, 29 Aug 2016 23:00:00 +0000 Fifteen one-kilo gold coins have been minted to mark the 2016 Formula One season.

The weighty collectors’ items are part of a series of F1 coins made for collectors, investors and fans of motor racing by Swiss mint, PAMP.

A number of the huge one kilo coins have already been sold. Each features a portrait of the Queen by Ian Rank-Broadley and the coin’s legal tender.

For investors with less than F1 budgets, there are also quarter troy ounce gold coins and a two and a half troy ounce version. The coins feature the circuits in the 2016 season and are officially endorsed by the Formula One World Championship. There are limited edition silver F1 coins to collect too.

Marin Aleksov of Rosland Capital said: “Gold has been a trusted store of wealth since the earliest days of civilisation and it’s still a desirable asset around the world today, when many people are interested in diversifying their assets beyond a reliance on a paper-based asset portfolio.

“With this project we bring together the allure of gold and the global popularity of Formula One - it’s the perfect combination.”

The limited edition collection of coins each features its number in the series and a hallmark from the mint. They come in tamper-proof packaging.

The collection, which has been approved by F1 boss Bernie Ecclestone, has been on show at a number of F1 events around the world. It’ll be heading to the season-ending Abu Dhabi Grand Prix in November.

Collecting gold coins is a fantastic way to start investing in the precious metal. By choosing rare and exclusive coins, you will also be building value into your investment for the future due to the collectible nature of the coins as well as the intrinsic value of the gold they contain.

Interested in investing in gold coins? View gold coins for sale here.

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<![CDATA[Not too late to stake a claim in the gold rush]]> https://www.thegoldbullion.co.uk/blog/not-too-late-to-stake-a-claim-in-the-gold-rush-gold-bullion/ https://www.thegoldbullion.co.uk/blog/not-too-late-to-stake-a-claim-in-the-gold-rush-gold-bullion/ Sun, 21 Aug 2016 23:00:00 +0000 According to analysts, if you haven’t yet invested in gold, you haven’t missed the boat. There are many signs that the value of the precious metal will continue to rise for the rest of the year. 

One of the key aspects is that the conditions that have sent investors rushing to gold for its safe haven properties, show no sign of disappearing in the immediate future. The UK’s Brexit vote and political and economic instability have helped attract gold investors, and this is set to continue with the uncertainty surrounding the US Presidential elections later in the year.

Prateek Pant of Sanctum Wealth Management told Gold-Eagle: “Negative interest rates and surplus liquidity conditions will continue to prevail in the developed world for some time. Given these conditions, gold is a good asset class to stay invested in.
“We have run numbers which suggest that investors should have a 10-15 per cent allocation to gold at all times. This level of allocation has the potential to reduce portfolio risk considerably without affecting returns.”
First half figures for gold investment from the World Gold Council show that demand stood at 1,064.9 tonnes, which was 16 per cent higher than in the first six months of 2009 after the global economic crisis began to take effect.

The figures give weight to those commentators who are bullish about gold’s future prospects. 
Gold-Eagle analyst Joshua Rodriguez said: “At the moment, safe-haven demand for the precious metal remains incredibly high. Given current global economic conditions and how central banks are choosing to deal with the issue, I'm expecting that investors will continue to increase the demand for the precious metal for the foreseeable future.”

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<![CDATA[Gold marks best performance since 1980]]> https://www.thegoldbullion.co.uk/blog/gold-marks-best-performance-since-1980-but-what-s-behind-the-rally/ https://www.thegoldbullion.co.uk/blog/gold-marks-best-performance-since-1980-but-what-s-behind-the-rally/ Sun, 14 Aug 2016 23:00:00 +0000 The high demand for gold in the first half of this year has marked the precious metal’s best six-month performance for 36 years. 
Gold’s high prices achieved back in 1980 were due to economic uncertainties, much as we’re seeing at the moment following the UK's Brexit vote at the end of June and the forthcoming US presidential election.

However, according to the World Gold Council, this is not the only driver for gold’s 27 per cent rise in the first half of 2016.
The Council’s director of investment research, Juan Carlos Artigas, said that there have been numerous reasons for the strong demand, including moves by investors who had reduced their gold holdings in recent years and have now returned to the precious metal, Investment News reported.

Mr Artigas added: “There is still the issue of macroeconomic uncertainty, but we are also dealing with a US dollar that is less strong than it has been recently.”

Analysts also pointed to the actions of central banks around the world as helping to boost investors’ interest in gold. 
Mohamed El-Erian, chief economic adviser at Allianz SE, said: “While some may see gold as a hedge for the possibility of high inflation, the main driver of investor appetite at this stage is concern about the overvaluation of other financial assets, particularly stocks and bonds whose prices have been artificially lifted by central bank actions.”
Gold is traditionally considered a safe have investment in unsettled economic times and as a hedge against inflation. Many investment advisors see holdings in gold as a crucial part of an investment strategy, alongside stocks and shares to provide a diversified portfolio where risk is spread.

Scot Hanson, from EFS Advisors, for example, advises his clients to have between five per cent and 10 per cent of their total investments in precious metals.

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<![CDATA[Chinese and Russian influence on high gold price]]> https://www.thegoldbullion.co.uk/blog/chinese-and-russian-influence-on-high-gold-price-gold-bullion/ https://www.thegoldbullion.co.uk/blog/chinese-and-russian-influence-on-high-gold-price-gold-bullion/ Sun, 07 Aug 2016 23:00:00 +0000 The price of gold has soared in 2016, propped up by China and Russia’s continued purchases of bullion to reduce their dependence on the US dollar, according to analysts.

The World Gold Council calculates that China has around 1,823.3 tonnes of gold, the sixth largest international holding, while Russia has the seventh biggest with 1,498.7 tonnes.

Marketwatch analyst David Marsh said: “China and Russia, the world's No1 and No3 producers, are catching up to the big industrial countries in stocks of bullion in their official reserves.”

China is understood to be upping its gold holdings as part of its efforts to make its currency, the renminbi, a global reserve currency. Russia, meanwhile, is keen to reduce its reliance on the US dollar so that it lessens the effects of any financial sanctions imposed by the US.

Alor Broker commodities specialist, Pavel Khoroshilov, said: “Large scale demand from China and Russia has provided solid support for gold since the beginning of the year.

“From January to April, China bought 11 tonnes per month and Russia bought 14 tonnes per month.”

Gold purchases by Russia and China are building on the two nations’ efforts to boost their bullion supplies in 2015. Last year, the total amount of gold held by governments around the world jumped by 702.5 tonnes. That compares to the relatively small international increase of 176.6 tonnes recorded in 2014.

The Chinese and Russian effects on the gold price are just one element in what has so far been an extraordinary year for the precious metal.

Political and economic uncertainty on a global basis, with events such as Britain’s vote to leave the European Union, have sent investors scurrying to gold for its safe haven properties. It’s possible that the US presidential election at the end of the year will have similar effects on investors and result in the gold price climbing even higher.

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<![CDATA[Gold price steady as US markets await further economic data]]> https://www.thegoldbullion.co.uk/blog/gold-price-steady-as-us-markets-await-further-economic-data/ https://www.thegoldbullion.co.uk/blog/gold-price-steady-as-us-markets-await-further-economic-data/ Sun, 31 Jul 2016 23:00:00 +0000 The value of gold was down slightly this morning (Monday August 1) after hitting its highest level in almost three weeks before the weekend.

Gold was buoyed up at the end of last week by poor economic figures from the US. Data showed that the US economy grew by just 1.2 per cent in the second quarter of the year, a much slower pace than analysts had been expecting.

Gold ended last week at £1,023.25 per troy ounce at 20:45 on Friday (July 29) and this morning, it stood at £1,017.94 at 06:45. The fluctuations show that the gold price is worth watching closely if you are looking to invest to determine the best points to buy and sell as there will be ups and downs. Although it's worth noting that the trajectory for the year as a whole has been on the up.

Jiang Shu, chief analyst at Shandong Gold Group, told Reuters that investors are likely to waiting for further official economic figures due to be published in the US at the end of the week.

He said: "The (gold) markets will be more prudent ahead of the non-farm payrolls data due on Friday.

"If it is going to be weak, then people will change their expectations about the US economic prospects drastically. If they are relatively good, bad GDP data could be counterbalanced by a good jobs data."

Expectations for the US economy – and therefore whether more investors will head to gold as a safe haven for their money – were mixed at the start of the week. Much of that is due to the different signals coming from the US Federal Reserve policymakers about whether interest rates will rise again before the end of the year.

Dallas Fed President Robert Kaplan was cautious about further hikes in the cost of borrowing but his San Francisco counterpart John Williams has indicated that he expects two rises before 2017. 

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<![CDATA[Isle of Man ends coin-producing relationship with Pobjoy Mint]]> https://www.thegoldbullion.co.uk/blog/isle-of-man-ends-coin-producing-relationship-with-pobjoy-mint/ https://www.thegoldbullion.co.uk/blog/isle-of-man-ends-coin-producing-relationship-with-pobjoy-mint/ Sun, 24 Jul 2016 23:00:00 +0000 The Isle of Man, known among coin investors for producing Angel gold bullion coins and the annual series of cat coins, is to end its longstanding relationship with the Pobjoy Mint.

The private mint has produced the island’s coins for four decades but the long association will come to an end next year.

The Isle of Man was Pobjoy’s first and longest customer. The mint also makes coins for Ascension Island, the British Antarctic Territory, the British Indian Ocean Territory, the British Virgin Islands, the Falkland Islands and South Georgia and the South Sandwich Islands. 

Its relationship with the Isle of Man to make its legal tender, circulating and collectible investment coins will come to an end on March 24 2017, the mint said in a statement. It did not explain why it will no longer be striking coins for the British Crown dependency.

Among the best known Isle of Man collectible gold bullion coins are the Angel coins, which are produced in one troy ounce versions, as well as the cat coins that change design each year. The island is known for its tailless cats and the mint has been making different editions of collectible cat coins on its behalf since 1988. The first Angel coins were issued in 1985.

Pobjoy wished the island well for its future coin production but said that there would be a smaller number of themes produced by the island in the future.

The mint’s Ron Curry told Coin World: “We don’t know why actually, but we do know they are cutting it back. They haven’t given us a reason.”

It means that current editions of some Isle of Man coins will be the last to be produced, at least for the moment, which will make them even more collectible – and valuable – over the longer term.

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<![CDATA[Investors heading for gold bullion coins and bars]]> https://www.thegoldbullion.co.uk/blog/why-investors-are-heading-for-gold-bullion-coins-and-bars/ https://www.thegoldbullion.co.uk/blog/why-investors-are-heading-for-gold-bullion-coins-and-bars/ Sun, 17 Jul 2016 23:00:00 +0000 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. 

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<![CDATA[Top US investment manager makes the case for gold]]> https://www.thegoldbullion.co.uk/blog/top-us-investment-manager-makes-the-case-for-gold/ https://www.thegoldbullion.co.uk/blog/top-us-investment-manager-makes-the-case-for-gold/ Sun, 10 Jul 2016 23:00:00 +0000 Gold is the best investment in an increasingly uncertain world, according to the boss of US investment group DoubleLine Capital.

CEO Jeffrey Gundlach is advising investors to put their money into the precious metal following the British vote to leave the European Union in June and the turbulence that has been seen across world markets following the referendum.

He said that the instability caused by the Brexit vote along with fears about the policies of central banks and the possibility of a long stagnation in the global economy were good reasons to head for the safe haven of gold.

Mr Gundlach told CNBC: "Things are shaky and feeling dangerous. I am not selling gold."

Mr Gundlach, whose Los Angeles-based company manages more than $100 billion in assets, expounded his thoughts about further instability in the markets in an interview with Barrons.

He said: “We’ve been expecting a summer of volatility all year. One of the ingredients for that cocktail was that the Federal Reserve seemed to be on a death march to raising interest rates. Now, [Fed Chief] Janet Yellen has made it pretty darn clear she isn’t going to raise interest rates. That certainty of higher rates has been replaced by this economic and political uncertainty.”

In an uncertain world, savvy investors traditionally turn to gold as a safe place to keep their money. On top of the sustained rally already seen this year in the gold price per troy ounce, the Brexit vote has pushed its value higher.

There is also the uncertainty of the US presidential election later in the year which could have a similar effect on the markets. Nothing is certain in investments, but a lot of the signs are pointing towards gold holding its value well over the coming months in the face of global instability.

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<![CDATA[Gold price predicted to still rise post-brexit]]> https://www.thegoldbullion.co.uk/blog/gold-price-predicted-to-still-rise-post-brexit-gold-bullion/ https://www.thegoldbullion.co.uk/blog/gold-price-predicted-to-still-rise-post-brexit-gold-bullion/ Sun, 03 Jul 2016 23:00:00 +0000 The aftershocks of the UK’s decision to vote to leave the European Union are still being felt and analysts expect the gold price to climb even higher as a result.

The uncertainty in the global economy caused by the Brexit vote has sent investors worldwide scurrying to the precious metal as a safe haven for their money.

A poll of Wall Street experts and traders carried out last week by Kitco found that more than seven out of 10 (73 per cent) believe the gold price will continue to increase this week. Last week, the gold price per troy ounce climbed by 3.72 per cent from £975.29 to £1,011.53.

Much of the flight to gold by investors is due to anxiety among about what central banks around the globe will do in reaction to the economic issues raised by the UK’s decision to quit the EU.

The US dollar was slightly down last week and the pound has fallen radically in the wake of the historic vote. Analysts in the US expect this will make the US Federal Reserve less likely to raise interest rates in the immediate future due to the ongoing concerns about the global economy. However, the US markets are awaiting a raft of economic data in the coming week with jobs and payroll figures due to be published.

The gold price forecast was increased by Societe Generale last week on the back of the ongoing turbulence.

In a note, it said: “Looking ahead, it seems that gold will remain one of the major beneficiaries in the current backdrop, as heightened volatility and lingering uncertainty will keep investors' risk appetite in check.”

Investors have also been putting their cash into silver, which has jumped in value to more than £14.30 for the first time since September 2014, Reuters reported

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<![CDATA[Gold price continues to rise after of Brexit vote]]> https://www.thegoldbullion.co.uk/blog/gold-price-continues-to-skyrocket-in-wake-of-brexit-vote/ https://www.thegoldbullion.co.uk/blog/gold-price-continues-to-skyrocket-in-wake-of-brexit-vote/ Sun, 26 Jun 2016 23:00:00 +0000 The price of gold is continuing to climb as the world markets react to the shockwaves caused by the UK’s vote to leave the European Union.

The value of the precious metal, which has been rallying for the past six months, has rocketed as investors seek a safe haven for their cash. The gold price stood at £987.57 per troy ounce at 07:45 today (Monday 27), leaping from £836.39 per troy ounce at 23:00 on Thursday before the results of the referendum were announced.

The gold price has jumped as concerns for the economy in the wake of the Brexit vote saw the value of the pound slump to its lowest levels in more than 30 years. The tremors were felt around the world as share prices tumbled as investors sought a safe haven for their cash.

According to Bloomberg, analysts expect the price of gold to climb even higher by the end of the year and reach levels not seen since August 2013.

In a report, Goldman Sachs analysts Max Layton and Jeffrey Currie said: “The ultimate trajectory will depend on the intensity and duration of the uncertainty shock created by the leave outcome and any potential revisions to the US growth outlook, both of which remain highly fluid in the current context.”

Indian analyst Madhavi Mehta, of Kotak Commodity Services in Mumbai, added that the uncertainty that remains in the market means “safe haven assets like gold and yen may remain supported”.

British Chancellor George Osborne tried to calm the markets in a statement this morning, suggesting there would not be an emergency Budget as an immediate reaction to the Brexit vote. Prior to the referendum, he had indicated that one would be needed.

However, in today’s statement, Mr Osborne said that although the UK economy would require an adjustment, Britain could face the uncertain future “from a position of strength”. 

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<![CDATA[Analysts predict sharp jump in gold value if UK opts for Brexit]]> https://www.thegoldbullion.co.uk/blog/analysts-predict-sharp-jump-in-gold-value-if-uk-opts-for-brexit/ https://www.thegoldbullion.co.uk/blog/analysts-predict-sharp-jump-in-gold-value-if-uk-opts-for-brexit/ Sun, 19 Jun 2016 23:00:00 +0000 Analysts are predicting a sharp rise in the price of gold if Britain votes to leave the European Union this week.

Speculation that the UK will vote for Brexit in the referendum on Thursday (June 23) has already seen the value of the pound tumble and gold is, of course, considered the safe haven for cash in turbulent times.

James Steel, of HSBC, told Business Insider that a vote to leave could see the price of gold rally by another 10 per cent.

He said: “The drive higher may be more pronounced if there were to be broader concerns about the future direction of the EU after the vote. Gold could also benefit from the reluctance of investors to move into the GBP or even the EUR.

“As a risk-off asset, gold would likely rally in the event of a leave vote. We anticipate a sizable safe haven bid in gold in this event.”

HSBC points out that gold is “often one of the few liquid perceived safe haven assets”.

The bank is not alone in warning of issues on the market in the event of an out vote. Both Morgan Stanley and Bernstein Research have also highlighted the risks to the UK’s financial sector if the country chooses Brexit.

However, HSBC does not forecast as sharp fall in the value of gold, which has enjoyed a strong rally so far this year, if the UK opts to remain within the EU. It said that the precious metal is “well placed to withstand any repercussions” of a remain vote.

Mr Steel added: “The risk to gold of a vote to remain in the EU would be asymmetricWhile a vote to leave the EU would likely result in a rally, we do not think a vote to remain in the EU would trigger a major sell-off.”

View The Gold Bullion Company's investment products here.

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<![CDATA[Big investors lead sustained gold rally]]> https://www.thegoldbullion.co.uk/blog/big-investors-lead-sustained-gold-rally/ https://www.thegoldbullion.co.uk/blog/big-investors-lead-sustained-gold-rally/ Sun, 12 Jun 2016 23:00:00 +0000 Major investors are putting their money into gold amid continued concerns about both the global economy and the uncertain political outlook.

Famed US investors George Soros and Stanley Druckenmiller are among those currently putting money into the precious metal thanks to its reputation as a safe haven in turbulent times. It’s understood that Mr Soros has been investing both in physical gold and gold mining shares; Mr Druckenmiller has spoken publicly about the safety of gold in comparison to stocks because of his concerns about the Chinese economy and the US Federal Reserve’s monetary policies.

2016 is a major year on the political front and that is increasing the uncertainty on the markets. As well as the UK referendum on membership of the EU and the US presidential election later in the year, there are a number of other issues that are making the precious metal attractive to investors.

Dennis Gartman, who publishes the Gartman Letter, told CNBC: “You have a Spanish election coming at you in a week and a half and that is terribly confusing. It looks like the left is going to win. You have rising nationalism in France. You have the strike in France. You have one thing after another.”

The possibility that the UK may leave the EU is making investors consider whether other nations could follow suit and the potential effects that would have on the value of the euro.

Meanwhile, Jim Steel, chief commodities analyst at HSBC, said that the steadily rising price of gold this year is due to investors, rather than major physical-gold-buying nations such as China and India increasing their holdings.

He said: "Basically, the rally has been entirely investment led.

"It's kind of like having a table with a leg missing. It's heavily investment led. I'd feel better with a longer-term rally if we had a physical component. It does present upside roadblocks further up.”

View The Gold Bullion Company's gold and silver investment products here.

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<![CDATA[Gold forecast for strong week after poor US data]]> https://www.thegoldbullion.co.uk/blog/gold-forecast-for-strong-week-after-poor-us-data-puts-rate-rise-expectations-on-hold/ https://www.thegoldbullion.co.uk/blog/gold-forecast-for-strong-week-after-poor-us-data-puts-rate-rise-expectations-on-hold/ Sun, 05 Jun 2016 23:00:00 +0000  Gold is forecast to have a strong week on the markets following the publication of weak jobs data in the US, which makes it less likely that the US Federal Reserve will increase interest rates.

The precious metal jumped in value by more than two per cent on Friday following a weakening last week on the back of expectations that the Fed was on course to put up the cost of borrowing. But the latest US Labor Department figures for non-farm jobs showed the lowest number of jobs in five years were created during May and appear to have put paid to most analysts’ predictions of a hike in rates.

The data was well down on expectations and could spell a further resurgence in gold prices over the week ahead, following a slump as investors confidently expected the Fed to raise rates. Gold was valued at £857.31 per troy ounce at 20.45 on Friday (3 June) and this morning (Monday 6 June), it was valued at £859.63 per troy ounce at 08:00.

ABN Amro analyst Georgette Boele told Reuters: “The sharp drop in non-farm payrolls is negative for the dollar and positive for gold. Expectations for a rate hike soon have clearly diminished... Precious metals prices will fly higher.”

After the release of the jobs figures, both US and European shares fell, along with the US dollar, oil and bond yields. Gold tends to rise in such circumstances because it is considered a safe haven for investors during turbulent economic times.

James Steel, chief metals analyst for HSBC Securities in New York, said: “The climate for gold to go higher ... was certainly set because this pretty sharp drop in bond yields, along with the pull-back in the US dollar and declining equities created a good combination for the gold market to go higher.”

Silver, platinum and palladium also rose on the news.

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<![CDATA[Investors boost gold and silver coin sales]]> https://www.thegoldbullion.co.uk/blog/investors-boost-gold-and-silver-coin-sales-in-europe-and-the-us/ https://www.thegoldbullion.co.uk/blog/investors-boost-gold-and-silver-coin-sales-in-europe-and-the-us/ Mon, 30 May 2016 23:00:00 +0000 Mints in the US and Europe are reporting high levels of demand from investors buying gold and silver coins and bars.

Figures from the Austrian Mint showed that its sales of gold bullion were 57 per cent higher in 2015 than in 2014, and it is expecting another strong year in tandem with gold’s good performance in the first five months of the year.

The mint’s most popular bullion coin is the Gold Vienna Philharmonic, which was the world’s best-selling coin in 1992, 1995, 1996 and 2000. It looks like the strong performance of the mint in 2015 could see the coin reclaim that title.

The coin, which features images of instruments, was first introduced in 1989. It is available in one troy ounce, half troy ounce, quarter troy ounce and one tenth of an ounce weights.

The US Mint has reported similar impressive demand for its gold and silver coins so far this year.

Since January, investors have bought more than 406,500 troy ounces of gold coins, more than double the amount the US Mint sold in the first five months of 2015.

It comes as gold has been enjoying strong prices amid renewed concerns about the global economy and the international political environment. Investors are again heading to gold for its safe haven benefits.

The majority of the US gold coins sold – some 80 per cent – are the one troy ounce $50 American Eagle Coins.

Investors have also bought 40,000 half troy ounce $25 coins, 18,500 quarter troy ounce $10 coins and 42,000 $5 coins which weigh a tenth of a troy ounce, the mint said.

The US Mint also reported strong sales of its American Eagle silver bullion coins. In the year to May 23, it had sold 22,771,500 of the coins which have been available since January 11.

View The Gold Bullion Company's US Gold Coins for sale here.

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<![CDATA[Chinese bank buys gold storage vault in London]]> https://www.thegoldbullion.co.uk/blog/chinese-bank-buys-huge-gold-storage-vault-in-london/ https://www.thegoldbullion.co.uk/blog/chinese-bank-buys-huge-gold-storage-vault-in-london/ Sun, 22 May 2016 23:00:00 +0000 A huge bank vault in London, designed to hold up to 2,000 tonnes of gold, silver, platinum and palladium, is being sold to China’s ICBC Standard Bank.

ICBC Standard, which is the world’s biggest bank by assets, is the first Chinese bank to buy a vault in the UK capital. It needs the facility as it grows its precious metals business and seeks to have a greater influence on the pricing, dealing and storage of gold bullion.

The vault is in a secret location and was originally built on behalf of Barclays. The UK bank, which is leaving the precious metals business as it seeks to downsize and refocus its operations, opened the vault in 2012.

It took more than a year to build and is believed to be one of the biggest precious metals storage facilities in Europe. Barclays has never been precise about the vault’s location due to security reasons, but has said it is within the M25 motorway area.

ICBC Standard Bank and Barclays are expecting to complete the deal by the summer. It will make the Chinese group the eighth provider of precious metal storage facilities in London, alongside names such as the Bank of England and JP Morgan Chase.

ICBC is keen to have a vault in London as it grows its precious metals business because the capital, along with New York, is at the heart of international gold trading. The London bullion market dealt with an estimated £3.5 trillion in gold deals in 2015.

China is the world’s biggest gold buyer and is responsible for more than 25 per cent of international demand for the precious metal.

ICBC's head of commodities Mark Buncombe told the BBC that buying the vault “enables us to better execute on our strategy to become one of the largest Chinese banks in the precious metals market”.

As part of that strategy, it has also joined London’s precious metals clearing system.

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<![CDATA[Gold records best quarterly performance]]> https://www.thegoldbullion.co.uk/blog/gold-records-best-quarterly-performance-in-almost-30-years/ https://www.thegoldbullion.co.uk/blog/gold-records-best-quarterly-performance-in-almost-30-years/ Sun, 15 May 2016 23:00:00 +0000 The price of gold surged by 17 per cent in the first quarter of this year – its best performance in almost 30 years.

The quarterly report into the precious metal by the World Gold Council also found that gold was one of the best performing assets on the global market between January and March this year.

Demand for gold rose by 21 per cent on the same period last year to stand at 1,290 tonnes. This was the second biggest quarterly figure ever recorded. The figure was boosted by demand from central banks, which bought 109 tonnes during the period.

The World Gold Council credited the strong figures to a mixture of political and financial concerns around the world. It said the uncertainty created by negative interest rate policies put in place in the Eurozone and Japan helped increase the attraction of gold among investors for its safe haven properties.

The report said: “Gold found favour for its role as an effective risk diversifier, enhanced by its added benefits of liquidity and relatively low volatility.

“Inflows were reportedly from a broad investor base, from institutional to private. Notably, there is anecdotal evidence that many of these inflows are from investors initiating or rebuilding strategic, long-term holdings after the wash-out of positions since early 2013.”

The gold price has also been bolstered by the weakening expectation of further rapid interest rate rises in the US. At the end of last year, the market was expecting the cost of borrowing to be increased again early in 2016 but this did not materialise, and the US Federal Reserve has taken a much more cautious approach than anticipated.

The changes in the international economic picture at the start of 2016 created an uncertain position that has benefited the gold price.

Today (16 May) at 08:00, gold was valued at £892.45 per troy ounce.

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<![CDATA[Donald Trump revealed as a gold bullion investor]]> https://www.thegoldbullion.co.uk/blog/donald-trump-revealed-as-a-big-gold-bullion-investor/ https://www.thegoldbullion.co.uk/blog/donald-trump-revealed-as-a-big-gold-bullion-investor/ Sun, 08 May 2016 23:00:00 +0000 US Presidential hopeful Donald Trump has been revealed as a major gold investor.

The presumptive nominee for the Republican party’s battle for the White House owns between $100,000 and $200,000 (£69,000 and £138,600) in bullion in the form of coins and bars, according to his declaration to the Federal Election Committee.

Back in 2011, Trump received payment for a lease in Wall Street from a precious metal dealer in gold rather than cash. In a televised stunt, Michael Haynes paid over the rent to the businessman turned politician in the form of bullion, The Guardian reported.

At the time, Trump’s people said he had accepted the payment in gold because he was expecting the US dollar to fall in value, which would increase the value of gold. This didn’t happen: the gold value dipped for four years but the fortunes of the precious metal – just like Trump himself – are now on the rise.

Trump isn’t the only famous investor who is backing gold. Stanley Druckenmiller, a well-known name in the hedge fund world, recently told investors about his support for the precious metal.

Market watchers also expect the Trump effect to lead to a further increase in the value of gold during the race for the White House. They forecast greater geopolitical tensions to arise as the Presidential candidates continue to argue their respective corners, which will give a boost to gold because of its traditional position as a safe haven for cash in stormy waters.

The gold price has jumped strongly this year amid fears about both the global economy and political concerns. It has also been supported by the US Federal Reserve’s decision as yet to not raise interest rates again, despite expectations at the start of the year there could well be a number of increases in the cost of borrowing to come in 2016.

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<![CDATA[Gold price stable after hitting 15-month highs]]> https://www.thegoldbullion.co.uk/blog/gold-price-stable-after-hitting-15-month-highs-gold-bullion/ https://www.thegoldbullion.co.uk/blog/gold-price-stable-after-hitting-15-month-highs-gold-bullion/ Wed, 04 May 2016 23:00:00 +0000 The gold price steadied today (Thursday) after suffering small losses this week on the back of a rebound in the value of the dollar.

Falls in the value of the US currency at the start of the week had helped gold reach a price of £890.86 per troy ounce on Monday – its highest value in 15 months – but some better economic reports from the US saw the dollar pick up value. As a result, gold fell back and then steadied. The precious metal was valued at £882.79 per troy ounce at 07:45 this morning (5 May).

One Australian precious metals trader told Reuters: "I think the [gold] market got a little carried away on the long side. At the moment, we are just seeing some profit-taking.”

But he said the trend for higher gold prices is “still in place”. The value of gold has soared by 21 per cent since the start of the year as investors recognised its strength as a safe haven for their money.

The rally in gold has been largely due to expectations that the US Federal Reserve is now less likely to increase the cost of borrowing because of economic uncertainties. Analysts’ predictions of a US interest rate rise were further weakened on Wednesday when figures showed weaker than expected growth in the US private employment market.

Strong sales of gold coins reported in April

The new 2016 Mercury Dime Centennial coin produced by the US Mint almost sold out within a week of its launch, with 122,510 from the total mintage of 125,000 snapped up by collectors and investors.

The 24 carat gold coin weighs one-tenth of a troy ounce and buyers are limited to 10 per household.

The sparkling performance comes as the US Mint reported good gold coin sales figures for April. The latest edition of the one troy ounce American Buffalo Coin sold 19,500 units, 500 more than in February and well ahead of the 7,000 that were shifted during March.

And there were 93,500 sales of American Gold Eagles. The coin comes in one troy ounce, half, quarter and one-tenth of an ounce weights, with the one ounce coin the most popular among investors. A total of 279,000 of the one troy coin variation were sold between the start of the year and the end of April.

India gold recycling schemes bring in 80 tonnes

India’s efforts to persuade more people to recycle gold and thus reduce the country’s reliance on imports are paying off.

Some 80.2 tonnes of the precious metal were delivered for recycling from homes and temples last year, according to the World Gold Council.

However India – the world’s second biggest gold importer after China – still bought in a massive 849 tonnes last year, compared to the 828 tonnes imported in 2014. The country experienced especially high demand towards the end of the year, when 233 tonnes were imported during the final quarter of 2015.

Some of the gold being deposited with banks in the government’s approved monetisation scheme is being melted down to create gold coins for collectors and investors. 

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<![CDATA[High demand for gold coins reported during April]]> https://www.thegoldbullion.co.uk/blog/high-demand-for-gold-coins-reported-during-april/ https://www.thegoldbullion.co.uk/blog/high-demand-for-gold-coins-reported-during-april/ Mon, 02 May 2016 23:00:00 +0000 Demand for the US Mint’s latest 24 carat gold coin has been so high among collectors and investors, it almost sold out within a week of its launch.

The 2016 Mercury Dime Centennial coin sold 122,510 from the total mintage of 125,000. The clamour for the coin saw it being listed as ‘unavailable’ within an hour of going on sale. There is a '10 coins per household' limit on buying the one-tenth of a troy ounce gold coin.

The demand for the new edition reflects the currently popularity of gold coin investment as the price of the precious metal continues to perform strongly.

Figures from the US Mint also showed that sales of the 2016 one troy ounce American Buffalo Coin during April were the second highest so far this year. Collectors snapped up 19,500 of the coins last month, up on the 19,000 bought in February and 7,000 sold in March. January has so far set the 2016 monthly sales record, when 34,000 Gold Buffalos were sold.

Investors are also snapping up the ever-popular American Gold Eagle. Sales of the 2016 edition of the one troy ounce gold bullion coins reached 93,500 during April. Gold Eagles can be bought in one troy ounce, half, quarter and one-tenth of an ounce weights. The one troy ounce edition is the most popular, and so far this year, it has sold 279,000 units.

The surge in the silver price in recent weeks has been reflected in sales of silver coins too. The one troy ounce 2016 American Silver Eagle shifted 4.07 million units last month. The coin is always a best-seller for the US Mint and so far in 2016, more than 18 million have been bought by investors and collectors.

The Mint also produces a series of collectible silver coins including America the Beautiful proof quarters.

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<![CDATA[Gold price remains steady as Fed leaves US rates on hold]]> https://www.thegoldbullion.co.uk/blog/gold-price-remains-steady-as-fed-leaves-us-rates-on-hold/ https://www.thegoldbullion.co.uk/blog/gold-price-remains-steady-as-fed-leaves-us-rates-on-hold/ Wed, 27 Apr 2016 23:00:00 +0000 It’s been a steady week for the gold price, which has hovered around the £850 per troy ounce mark as investors waited for the US Federal Reserve’s latest decision on whether to increase the cost of borrowing.

As had been widely expected, the US central bank decided to leave interest rates on hold when it met on Wednesday (27 April). As a result, the gold price rose to after the announcement and this morning at 08:00, gold was priced at £859.77per troy ounce.

The gold price has been stable for much of the week, although down on last week’s highs, as a result of worse than expected economic news from the US. Figures showed that orders for durable manufactured products did not improve as much as has been predicted and data in a separate report pointed to a slip in consumer confidence.

Concerns about the economy tend to bolster the value of gold as investors head to the precious metal as a safe haven for their cash.

Gold demand dips among dentists

The use of gold in the dental industry is falling, as patients seek whiter smiles, according to figures from the World Gold Council.

Whereas around 67 tonnes of the precious metal were being used by dentists worldwide a decade ago, the figure had slumped to around 19 tonnes during 2015. A combination of people’s desire for a Hollywood white smile and the high gold prices achieved during the recession are being blamed for the trend, which has seen demand for gold in dentistry fall by around 60 per cent since the start of the decade.

Lindsay Richards, dean of dentistry at the University of Adelaide in South Australia, told IOL: “We hardly ever use gold in front teeth now, almost never. I would’ve last done a gold filling 10 years ago in a front tooth. For the back teeth, it’s still an excellent material, but people don’t like the look of it.”

Rise in counterfeiting detected

Gold coin and bar buyers are being urged only to use reputable dealers after a rise in counterfeits coming on to the market.

The reports from the US suggest that much of the fake gold for investment is coming from China. Fraudsters have manufactured counterfeit coins, packaging and even certificates of authenticity. In some cases, ‘gold’ bars have been discovered to be made from tungsten and painted with gold leaf.

Writing in Newsmax, gold industry and coin expert, Mike Fuljenz said: “Whenever gold makes a positive move up, as it has done in the first quarter of 2016, we see ads from coin dealers sprouting up like weeds.  Publications have little or no way to check-out advertisers.  Their main criterion for reliability is whether their check for the ad’s payment clears the bank.  Don’t be tricked by an ad on the Internet or on late-night TV.”  

At the Gold Bullion Company, we’ve been trading for more than 20 years and have a reputation for trustworthiness in the industry. Dealing with an established supplier means you can be confident about the gold investments you make. 

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<![CDATA[Counterfeit bullion bars and coins increase]]> https://www.thegoldbullion.co.uk/blog/increasing-numbers-of-counterfeit-bullion-bars-and-coins-reported/ https://www.thegoldbullion.co.uk/blog/increasing-numbers-of-counterfeit-bullion-bars-and-coins-reported/ Sun, 24 Apr 2016 23:00:00 +0000 Buying gold coins is a great way to start investing in precious metals, but it’s important to know what you are buying.

Reports from the US suggest there has been a rise in counterfeit gold bullion coins and bars being uncovered. It’s of little surprise that the fraudsters are trying to cash in as gold enjoys an upswing in value among investors.

Always ensure you are buying from a reputable dealer that is well-established and has a good reputation in the market. Too good to be true prices when it comes to gold are usually exactly that.

According to Newsmax, many of the fraudulent coins and bars appear to be coming from China. It reported that apparently professionally packaged gold bars that looked exactly like those produced by a Swiss dealer had been found. Experts have also uncovered cases of counterfeit American Eagle gold coins and ‘gold’ bars made from tungsten and painted with gold leaf.

Gold industry and coin expert, Mike Fuljenz, wrote: "Whenever gold makes a positive move up, as it has done in the first quarter of 2016, we see ads from coin dealers sprouting up like weeds. Publications have little or no way to check-out advertisers. Their main criterion for reliability is whether their check for the ad’s payment clears the bank. Don’t be tricked by an ad on the Internet or on late-night TV."

US TV station KVRR also revealed a significant increase in reports from dealers of counterfeit coins over the past 12 months. It said that everything from the coins themselves to the packaging and certificates were being faked, and again pointed the finger at Chinese-made counterfeits. In many cases, fraudsters are understood to be buying fake coins and mixing them in with the genuine article in an effort to fool buyers.

The Gold Bullion Company was set up in 1993 and has established a reputation for fair and honest trading. Not all coin and bullion bar companies can say the same, so think before you buy from a less-trusted source.

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<![CDATA[Steady week for gold but silver on the rise again]]> https://www.thegoldbullion.co.uk/blog/a-steady-week-for-gold-but-silver-prices-on-the-rise-again/ https://www.thegoldbullion.co.uk/blog/a-steady-week-for-gold-but-silver-prices-on-the-rise-again/ Wed, 20 Apr 2016 23:00:00 +0000 The gold price has remained pretty steady in the first half of this week, although it was down from the highs seen at the end of last week.

For precious metal watchers and investors, the big story has been the continued rise in the value of silver. It has now reached its highest price in 11 months and has already increased in value by 11 per cent so far in April. Reuters reported that silver is now on course to record its biggest monthly gain since June 2014.

Silver reached £12.02 per troy ounce on Tuesday (20 April) and the gold/silver ratio – how much silver it takes to buy one troy ounce of gold – was at its lowest in almost six months, at 73.1.

ABN Amro analyst Georgette Boele said: "If you look at the long-term outlook for the gold/silver ratio, it can go a lot lower. That would mean that if you're optimistic on gold prices, silver can go a lot higher."

Future factors for gold

The steady gold price this week, which has hovered around the £871 per troy ounce mark, has been largely due to a quiet period for economic news.

Rob Haworth, from the Seattle-based US Bank Wealth Management, said that in order to rise, the gold price needs “a clearer indication of central bank policy and some other demand indicator”.

That could come later today (Thursday), when the European Central Bank (ECB) meets to decide on its latest interest rate policy, and with the forthcoming meeting of the Bank of Japan. The ECB is widely forecast to leave interest rates across the eurozone on hold.

However, Simon Gambarini, an analyst with Capital Economics, said he expected to see some further increases in the gold price although there would be fluctuations.

He said: "Sentiment towards precious metals, particularly towards gold and silver, has been quite good both in the futures market and the ETF market, and that should help build a floor underneath prices."

Will the gold price continue to rise?

Investor interest is being credited with gold’s high-flying performance so far in 2016.

Charles Morris from the AtlasPulse Report, told the Daily Telegraph: “Changes in investor interest explain 80 per cent of the move in the gold price. When they buy, it rises, and when they sell, it falls. It is as simple as that.”

But not all analysts are united on where the gold price will go from here. While Citi said in a report that it expects risk factors to calm, leading to better equity market performance and less interest in the precious metal, HSBC expects further rises on the back of recent momentum.

The bullish view for gold is also backed by expectations that central banks’ policy of trying to stimulate the global economy with lower interest rates will not be sufficient.

According to the World Gold Council, there is a threat of negative interest rates which it said was pushing central banks and institutional investors towards the safe haven offered by gold. 

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<![CDATA[Analysts uncertain if price of gold will continue to rise]]> https://www.thegoldbullion.co.uk/blog/analysts-uncertain-if-price-of-gold-will-continue-to-rise/ https://www.thegoldbullion.co.uk/blog/analysts-uncertain-if-price-of-gold-will-continue-to-rise/ Sun, 17 Apr 2016 23:00:00 +0000 There are mixed views from analysts on whether the current rally in the gold price can be sustained over the longer term.

During the first quarter of this year, the gold price was helped by the global financial and political uncertainty: reports of a slowdown in China and terror attacks and threats. This helped to quash the value of currencies including the US dollar.

A report by Citi said: “As risk calms down, equity markets perform well and long end yields in the US and Germany .... rise, that is not a recipe that favours gold.”

However, HSBC took the opposite view and said momentum was up and it was expecting the gold price to increase further.

The better gold prices are also due to a combination of investment from central banks, institutional and private investors.

Charles Morris from the AtlasPulse Report, told the Daily Telegraph: “Changes in investor interest explain 80 per cent of the move in the gold price. When they buy, it rises, and when they sell, it falls. It is as simple as that.”

The threat of negative interest rates is also pushing buyers towards the precious metal, amid fears policies by global central banks will not be enough to stimulate the worldwide economy.

Alistair Hewitt, head of market intelligence at the World Gold Council, said: “Negative interest rates are the key reason why central bankers and institutional investors are now returning or expanding their allocations to gold.”

Sellers of physical gold coins and bars, like the Gold Bullion Co, have seen an upsurge in interest and new customers since the start of the year. Whether the rally is sustained or not, it’s still a good time to get in with gold investment, as prices could well go much higher. Remember, with any form of investment, prices do go down as well as up. 

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<![CDATA[Gold slips slightly but silver turns in sterling performance]]> https://www.thegoldbullion.co.uk/blog/gold-slips-slightly-but-silver-turns-in-sterling-performance/ https://www.thegoldbullion.co.uk/blog/gold-slips-slightly-but-silver-turns-in-sterling-performance/ Wed, 13 Apr 2016 23:00:00 +0000 Gold lost some ground on Wednesday (13 April) from its three-week peak recorded at the start of the week, as the US dollar increased in value and there was stronger news on China’s economic performance.

Gold tends to be strong when the dollar is weak and vice-versa, and the precious metal had benefited from recent dips in the value of the US currency. The dollar had fallen to its lowest value in almost eight months at the start of the week, but it made some gains on the back of the positive economic data from China and improved performances in the European stock markets.

Afshin Nabavi, head of trading at MKS, told Reuters: “Stronger equities and a relatively stronger dollar have put some pressure on gold.”

Gold’s highest value so far this week was on Monday (11 April), when it reached £888.16 per troy ounce at 07.15. This morning at 08:30 (Thursday), gold was valued at £878.61 per troy ounce.

Sterling performance from silver

All eyes may have been on the gold price so far this year, but silver has also been attracting investors and making gains.

In fact, this week the gold-silver ratio – how many ounces of silver are required to buy one ounce of gold – actually saw silver outperform gold. Gold fell to a three-and-a-half-month low on the ratio, as silver added value.

Silver hit its highest value in almost six months this week, when demand helped push the price over the £11.25 per troy ounce mark.

Reuters reported that there have been “sharp inflows” into silver-backed exchange traded funds, showing keen interest from investors. Silver, like gold, is widely used in technology and is also a key part of many industrial processes.

As well as funds, silver coin collecting is also a good way to start your silver investment, and the current decent prices are certainly worth keeping an eye on.

Gold scores best quarterly performance in three decades

The resurgence in the gold price seen so far this year is the best in almost 30 years, according to the World Gold Council’s (WGC) analysis of the quarterly figures – and the organisation sees no sign of demand for the precious metal running out of steam.

Between January and the end of March, the gold price jumped by 17 per cent in dollar terms. Its performance was also ahead of other major commodities and bonds as investors sought a safe haven for their money in stormy economic seas.

The WGC report on the first three months of the year said: “So far, we have had one very strong quarter.

“But inflows into gold look, to us, set to remain robust in second quarter, as the current macroeconomic environment remains supportive for both investment and central bank demand.”

The report also noted the strong demand from investors for gold bullion coins. Figures showed that sales of the US Mint’s 24 carat Buffalos and 22 carat Eagles were 51 per cent higher than during the first three months of last year. 

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<![CDATA[World Gold Council predicts further strengthening of gold price ]]> https://www.thegoldbullion.co.uk/blog/world-gold-council-predicts-further-strengthening-of-gold-price/ https://www.thegoldbullion.co.uk/blog/world-gold-council-predicts-further-strengthening-of-gold-price/ Sun, 10 Apr 2016 23:00:00 +0000 Gold’s performance in the first three months of 2016 was the precious metal’s best quarterly showing for almost 30 years.

The gold price rose by 17 per cent in US dollar terms and performed better that other major commodities and bonds, the World Council said.

It put the sparkling first quarter down to concerns about growth and financial stability in emerging markets and negative interest rate policies put in place by major central banks. It also rallied because of a break in the increasing value of the US dollar and benefited from a combination of the return of demand for gold and investors’ decisions to put their money into bullion on the back of its rising value.

The World Gold Council’s quarterly analysis expects these factors to feed into continued demand for gold over the next few quarters. It said that comparing the last three months to previous cycles suggests that “we may be entering a new bull market for gold”.

The report said there have been five bull markets followed by five bear markets for gold since the 1970s. During the previous bear markets, which lasted an average of 52 months, the gold price dipped by between 35 per cent 55 per cent.

“History also shows that two consecutive quarters of strong returns have typically resulted in a more sustained rally,” said the World Gold Council.

“So far, we have had one very strong quarter. But inflows into gold look, to us, set to remain robust in second quarter, as the current macroeconomic environment remains supportive for both investment and central bank demand.”

Demand for gold bullion coins among investors has also been high in January to March. Figures from the US Mint show that sales of 22 carat gold Eagles and 24 carat gold Buffalo coins combined were 51 per cent higher than in the first quarter of 2015. 

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<![CDATA[Fed minutes' approach leaves gold price steady]]> https://www.thegoldbullion.co.uk/blog/fed-minutes-cautious-approach-leaves-gold-price-steady/ https://www.thegoldbullion.co.uk/blog/fed-minutes-cautious-approach-leaves-gold-price-steady/ Wed, 06 Apr 2016 23:00:00 +0000 The gold price changed little after the US Federal Reserve released the minutes of its latest rate-setting meeting to the public on Wednesday (6 April).

The market had been waiting to hear the drivers behind the central bank’s decision to leave the cost of borrowing unchanged when it met in March.

The minutes revealed that although members expected strengthening news from the US labour market and an expansion of economic activity, “they saw global economic and financial developments as continuing to pose risks”.

James Steel, an analyst with HSBC, said: “Gold thrives in periods of heightened uncertainty… There appears to be enough uncertainty to prop up gold and the financial markets are no longer focused on the possibility of a near-term Fed rate hike. This relieves gold of a major weight, at least for the moment.”

The gold price dipped by around half a per cent after the minutes were released but quickly recouped its losses as the full story of a cautious approach by the Fed was absorbed by the market.

The gold price started this week at £856.85 per troy ounce on Monday (4 April) and dipped to £850.88 by 21.30 that evening. However, it hovered around the £870 mark for much of Tuesday and Wednesday. This morning at 08:00 (7 April), gold was £873.04 per troy ounce.

A look at the week ahead for gold

Next week’s gold price is expected to be impacted by the meeting of the International Monetary Fund (IMF). Analysts predict that the IMF will again downgrade the global growth forecast due to the commodities downturn that has hit nations including China, Brazil and Russia, FastMarkets reported.

This could again send the gold price higher if investors continue to seek a safe haven for their cash.

FastMarkets metals analyst, Boris Mikanikrezai said: “The resurgence of risk aversion could bode well for gold due to its safe-haven characteristics.

“Still, the speculative positioning is overstretched on the long side while ETF (exchange traded fund) demand is pausing after three months of intense buying. Against this backdrop, upward pressure could be contained.”

Rare gold bullion coin returns to the market

A giant gold bullion coin, worth around £3.8 million, is coming back on to the market for collectors and investors.

Just five of the huge coins, which are 99.999 per cent pure gold and weigh a staggering 3,215 troy ounces each, were made by the Royal Canadian Mint in 2007. They were initially marketed as the million dollar coin, but due to the rise in the gold price and the fact they have such rarity value for collectors, the cost of buying one has soared.

The coin features Queen Elizabeth II on the heads side and a maple leaf on the tails side. It is legal tender in Canada, where it has a face value of CAN $1 million.

All five of the coins were bought by private investors and this is the first time one has returned to the market since they were initially minted.

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<![CDATA[Giant 'million dollar coin' back on the market]]> https://www.thegoldbullion.co.uk/blog/giant-million-dollar-coin-back-on-the-market-gold-bullion/ https://www.thegoldbullion.co.uk/blog/giant-million-dollar-coin-back-on-the-market-gold-bullion/ Sun, 03 Apr 2016 23:00:00 +0000 One of the rarest gold coins ever made is back on the market, with a price tag of around £3.8 million at current gold prices.

The Royal Canadian Mint only made five of the giant 99.999 per cent pure gold coins in 2007. They were dubbed the million dollar coins but have since soared in price, showing the value that gold coin investment can earn in the longer-term.

The coins weigh in at a hefty 3,215 troy ounces each. All five were bought by private investors and only one is currently for sale. The coins were originally designed as showpieces, but they are legal tender in Canada with a face value of Can. $1 million. However, both the gold price and the rarity of the coins have pushed up the price that collectors are willing to pay for them.

The bullion coin is one of the largest ever made. It features a portrait of the Queen by Canadian artist Susanna Blunt on the obverse side. On the tails side is a maple leaf designed by Stan Witton of the Royal Canadian Mint.

The mint is a well-known designer of collectible coins in both gold and silver. It’s the home of the popular Canadian Maple Leaf gold and silver bullion coins.

However, it also produces a range of special edition coins for investors and collectors. Among this year’s unusual editions are a range of Batman v Superman: Dawn of Justice coins that were created as a tie-in with the new Hollywood movie. It has also enjoyed strong sales this year of its limited edition Call of the Wild series which features Canadian wildlife.

Collecting coins is a popular way to begin investing in gold. As well as the intrinsic value of the precious metal in the coins, by choosing limited edition runs, collectors can also add value to their investment through the rarity value of the coins.

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<![CDATA[Precious metal marks brght quarterly performance]]> https://www.thegoldbullion.co.uk/blog/volatile-week-for-gold-but-precious-metal-marks-glittering-quarterly-performance/ https://www.thegoldbullion.co.uk/blog/volatile-week-for-gold-but-precious-metal-marks-glittering-quarterly-performance/ Wed, 30 Mar 2016 23:00:00 +0000 It’s been a volatile week for the gold price this week after the long Easter weekend and remarks from the US Federal Reserve chair Janet Yellen.

The precious metal hit a weekly high of £864.75 at 21.45 Tuesday (29 March) after Ms Yellen warned about “ongoing risks” in the global economy and said that the Fed should “proceed cautiously” when considering further rises in the cost of borrowing.

She said: “Although the baseline outlook has changed little on balance since December, global developments pose ongoing risks. These risks appear to have contributed to the financial market volatility witnessed both last summer and in recent months.”

Analysts interpreted the comments as meaning another hike in interest rates is not likely in the coming months as had previously been forecast, especially if there is further disappointing international economic news on the horizon.

Ms Yellen’s speech in New York led to a mini rally in the gold price but it fell back to £851.58 at 15.30 on Wednesday, and this morning, gold was £857.53 per troy ounce at 08:00.

Strong quarterly performance

Despite the unsettled performance of the gold price this week, the precious metal is on course to record its best quarterly showing for almost three decades.

So far this year, gold has increased in value by almost 17 per cent on the back of weak economic news and political unrest which sent investors scurrying to the safe haven gold traditionally offers. That means the first quarter of 2016 is now set to be the strongest for gold since the third quarter of 1986, Reuters reported.

Mitsubishi precious metals analyst Jonathan Butler said gold was “susceptible to profit-taking” in the short term, but the medium-term outlook for the precious metal was good, thanks to the Fed’s stance which would also keep the strength of the US dollar in check.

Overall, gold has been the best performing commodity on the markets so far this year.

First Indian gold coins go international

The first gold coin produced by the Indian government as part of its ongoing gold recycling and monetisation efforts is now available for overseas collectors and investors to buy.

The coins have been manufactured from bullion collected from homes and temples in the government programme to reduce the country’s reliance on imports of the precious metal. It’s estimated that around 20,000 tonnes of gold is in private hands in India, but the country is still importing around 1,000 tonnes each year making it the world’s second biggest gold importer after China.

The new 999 fine 24 carat gold Indian Gold Coins, which are being produced in five and 10 gram varieties, as well as the new 20 gram Indian bullion bars, are being made with gold deposited with banks.

The coins are part of the Make in India initiative and feature the Ashoka Chakra on one side and Father of the Nation, Mahatma Gandhi, on the other. They are the only gold coins to bear the Bureau of Indian Standards hallmark and have built in anti-counterfeiting measures.

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<![CDATA[Launch for first Indian gold coin collection]]> https://www.thegoldbullion.co.uk/blog/international-launch-for-first-indian-gold-coin-collection/ https://www.thegoldbullion.co.uk/blog/international-launch-for-first-indian-gold-coin-collection/ Sun, 27 Mar 2016 23:00:00 +0000 Overseas distribution has begun for the first gold coin to be produced by the Indian government for investors and collectors.

The newly-launched Indian gold coins are 999 fine 24 carat gold and come in five and ten gram options. There is also an Indian gold bar available, weighing 20 grams, as part of the initiative.

The coins are made from gold bullion collected through the Indian government’s Gold Deposit Scheme and Gold Monetisation Scheme. Both programmes are aiming to release gold held in households and temples, and reduce the country’s reliance on imports of the precious metal to meet domestic demand for bullion.

India is the world’s second largest gold importer after China, bringing around 1,000 tonnes of bullion into the country annually. However, the Indian authorities estimate that there are around 20,000 tonnes of gold held privately and by temples and it wants to mobilise these reserves to reduce the cost of importing the precious metal.

The Gold Monetisation Scheme is a key part of this. The project, launched last year, allows banks to collect gold deposits for 15 years to auction off or lend to jewellers. People who deposit their gold with participating banks will receive up to 2.5 per cent interest on the value each year.

The Indian government is also backing the creation of more gold recycling centres across the country, where people can bring their precious metal to be melted down and converted into other forms.

The new gold coins are utilising bullion collected by the banks and simultaneously meeting domestic demand for gold investments. They feature the Ashoka Chakra on one side and Father of the Nation, Mahatma Gandhi, on the other.

The coins are being manufactured under the Make in India initiative and feature anti-counterfeiting safeguards. They are the only Indian coins to be hallmarked by the Bureau of Indian Standards. 

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<![CDATA[Gold price volatile amid Brussels attacks & hawkish Fed comments]]> https://www.thegoldbullion.co.uk/blog/gold-price-volatile-amid-brussels-attacks-and-hawkish-fed-comments/ https://www.thegoldbullion.co.uk/blog/gold-price-volatile-amid-brussels-attacks-and-hawkish-fed-comments/ Thu, 24 Mar 2016 00:00:00 +0000 The price of gold dipped to a four-week low on Wednesday (23 March) following rises on Tuesday as investors sought a safe haven for their money after the Brussels terror attacks.

The price of the precious metal has been volatile so far this week, starting off on Monday at £864.48 per troy ounce at 09:00 and reaching a high of £883.37 at 13.45 on Tuesday following the atrocities in Belgium. This morning at 09:00, gold was £864.98 per troy ounce.

The strengthening US dollar on Wednesday, helped by remarks from US Federal Reserve members pointing to the possibility of further interest rate rises on the agenda were among the reasons that Tuesday’s rally didn’t last.

Analysts also said that profit takers helped to bring down the gold price ahead of the long Easter weekend.

"After the news of Brussels, markets had a strong rally, but with the long weekend approaching there is some liquidation, likely to continue for the next few hours," MKS SA head of trading Afshin Nabavi told Reuters on Wednesday.

However, the slump in what has been a remarkable performance by the precious metal so far this year is not predicted to continue.

Georgette Boele from ABN Amro said: "The Fed comments put a bit of pressure on the gold price but are unlikely to derail a more positive long-term sentiment towards the metal.

“If there was a massive rate hike and a jump in the dollar, it would be very difficult for gold to move higher, but any rate increase will be gradual."

Indian jewellers call off strike

Indian jewellers striking over a one per cent tax on the sale of gold jewellery have called off their action after 18 days.

The All India Gems and Jewellery Trade Federation ended the strike after an eight-hour meeting with government officials, in which they received assurances that small businesses would not suffer “harassment in the imposition of the excise duty”.

The tax was imposed in the February Budget as part of efforts to reduce the country’s reliance on imported gold. Figures from Indian customs show that there was a slowing in imports last month, when the country bought in 23.8 tonnes.

However, the end of the strike is likely to reverse that trend, with jewellers returning to work and increasing demand once again for the precious metal. This could, in turn, boost the gold price on the international markets.

Silver coin focus

The second release of the Royal Canadian Mint’s Wild Canada Silver Maple Leaf coins has sold out.

The mint produced 50,000 of the one troy ounce 99.99 per cent purity silver coins, which feature a roaring grizzly bear. They are part of the Wild Canada six coin collection, which is running for three years.

The first coin in the series depicted a roaring wolf and will be followed with a cougar, a moose, an antelope and wood bison. The series will be completed in 2018.

Demand for the grizzly bear edition has been so high from collectors that the coins are now changing hands for around £7 more than the spot silver price. 

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<![CDATA[Silver coin sell-out and new gold bullion coin launch]]> https://www.thegoldbullion.co.uk/blog/silver-coin-sell-out-in-canada-and-new-gold-bullion-coin-launch-in-us/ https://www.thegoldbullion.co.uk/blog/silver-coin-sell-out-in-canada-and-new-gold-bullion-coin-launch-in-us/ Mon, 21 Mar 2016 00:00:00 +0000 The Royal Canadian Mint has sold out of its second release of the six-coin Wild Canada Silver Maple Leaf coins.

Just 50,000 of the one troy ounce 99.99 per cent purity silver coins were made. They went on sale in February and there has been high demand from investors and collectors, with coins now selling for around £7 more than the spot silver price.

The sold-out coin replaces the usual mint mark with a roaring grizzly bear and is part of the Mint’s $5 Silver Maple Leaf collection which was first launched in 1988.

The Mint’s Wild Canada series runs for three years. The first coin was decorated with a roaring wolf, and the third, featuring a cougar, comes out in September. It will carry the 2017 date and the fourth, also dated 2017, will show a moose. The final two in the collection will feature an antelope and a wood bison, and will be dated 2018.

Meanwhile, over the border, the US Mint has announced it will be issuing Betty Ford First Spouse Gold Coins towards the end of the month. The run of the half troy ounce fine gold coins will be limited to 10,000 so they are likely to become a collectors’ item.

Mrs Ford was US First Lady from 1974-1977 and is known for her work to combat addiction, raising awareness of breast cancer and promoting the role of women. The coin represents this on the tails side with an inscription of a young woman climbing a staircase. The heads side shows a portrait of the former First Lady and the inscriptions Betty Ford, Liberty, In God We Trust, 38th, the dates of her tenure and 2016.

It’s the latest in the Presidential and First Ladies coin series produced by the mint, which has already released coins celebrating Ronald Reagan and wife Nancy, and Richard Nixon and his wife Pat in 2016. 

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<![CDATA[Gold rebounds after US Fed leaves the cost of borrowing unchanged]]> https://www.thegoldbullion.co.uk/blog/gold-rebounds-after-us-fed-leaves-the-cost-of-borrowing-unchanged/ https://www.thegoldbullion.co.uk/blog/gold-rebounds-after-us-fed-leaves-the-cost-of-borrowing-unchanged/ Thu, 17 Mar 2016 00:00:00 +0000 The gold price jumped higher again on Wednesday (16 March) after the US Federal Reserve announced its decision to leave interest rates unchanged.

The gold price increased by more than two per cent in the wake of the announcement at 18:00, and by 19.45, it stood at £884.39 per troy ounce, £12 more than it was 24 hours earlier. This morning (Thursday 17), the gold price was £885.78 per troy ounce.

The Fed had been widely forecast to leave interest rates unchanged at the end of its meeting, but gold slipped in price earlier in the week while the market waited to see which way the US central bank would go. The price of the precious metal climbed steadily after the announcement, following a pattern that has seen the gold price increase by around 17 per cent so far this year.

Economic indicators and the price of gold

While the price of gold rose after the Fed’s decision to leave rates on hold, the US dollar fell in value by around 0.6 per cent. Generally, when gold is strong, the dollar is weaker and vice-versa.

So far this year, an unsettled economic picture with continued worries about the strength of the international economy, notably the slowdown in China, has helped add value to gold as a safe haven for investors.

However, figures from the US this week showed that housing data was better than expected and inflation rose more than the market had forecast.

Projections from the Fed after its rates announcement suggest that there may be one or two small increases in the cost of borrowing this year, Reuters reported. That is likely to benefit the strength of the US dollar to the detriment of the gold price.

However, it is difficult to predict what will happen accurately; gold has performed well this year on the back of unexpected volatility in the world markets.

Analyst Brien Lundin told MarketWatch: “Any indications that the Fed is showing less enthusiasm for rate hikes is bullish for gold.

“Any indication that they’ll have to forestall hikes altogether, or even revert to easing, would send gold catapulting higher.”

US Mint probes coin ‘anomaly’

An investigation has started in the US after buyers of 2016 American Eagle gold bullion coins complained of a fault that stops the coins from stacking correctly.

The Mint believes that up to 63,000 of the one troy ounce coins could be affected by the issue, where the image on the ‘heads’ side of the coin is higher than the rim. But rather than calling it a fault, the Mint says it is an anomaly.

The 2016 coins have been available since January and the US Mint will release four different weights of the 22 carat gold 2016 American Eagle proof coins today (17 March).

They will come in one troy ounce, half ounce, quarter ounce and one-tenth of an ounce varieties. The new proof coins, which do not have a maximum mintage, feature Liberty on one side and an eagle soaring above its nest containing its mate and chicks on the other.

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<![CDATA[Gold price softens as US Fed begins two-day rate-setting meeting]]> https://www.thegoldbullion.co.uk/blog/gold-price-softens-as-us-fed-begins-two-day-rate-setting-meeting/ https://www.thegoldbullion.co.uk/blog/gold-price-softens-as-us-fed-begins-two-day-rate-setting-meeting/ Wed, 16 Mar 2016 00:00:00 +0000 Gold’s recent rally hit the skids on Tuesday as the US Federal Reserve began its two-day rate setting meeting, with its decision set to be announced around 18:00 tonight (Wednesday 16 March).

After enjoying 13-month highs, the gold price fell to £869.00 per troy ounce at 18:00 on Tuesday and stood at £873.09 at 09:20 this morning.

Tuesday’s fall meant gold hit its lowest price in almost two weeks as the market waited to see whether the Fed would increase the cost of borrowing. There had been concerns that a poor run of economic data would mean that interest rates would remain unchanged, but more positive recent news in the US means that analysts now believe that a rate rise could be on the cards.

Macquarie analyst Matthew Turner told Reuters: "One difference from a few weeks ago is that the surprise (from the Fed) would be a rate hike, whereas perhaps a few weeks ago people thought a surprise would be a rate cut.

"There has been a shift towards hawkishness again, which is probably pressuring gold a little bit."

Traditionally, when the Fed is following a rate increasing arc, it suggests the US economy is also on the up and investors are more likely to put their money into more risky assets. Conversely, when rates are falling or staying static, it tends to benefit the gold price as investors seek a safe haven for their cash.

This slightly lower price seen this week offers a good opportunity to buy gold, as many analysts believe the price of the precious metal will continue to rise this year. If you’re seeking an opportune moment to buy or sell, it’s always worthwhile watching the markets and learning when the best times are to increase or decrease your holding. But like everything in life, there can be no guarantee of whether the gold price will increase or decrease.

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<![CDATA[American Eagle bullion coins may be affected by 'anomaly']]> https://www.thegoldbullion.co.uk/blog/thousands-of-american-eagle-bullion-coins-may-be-affected-by-anomaly/ https://www.thegoldbullion.co.uk/blog/thousands-of-american-eagle-bullion-coins-may-be-affected-by-anomaly/ Mon, 14 Mar 2016 00:00:00 +0000 The US Mint has ordered an investigation into a manufacturing anomaly that has affected what is thought to be tens of thousands of its 2016 edition of the American Eagle gold bullion coin.

The issue with some of the one troy ounce coins is that the relief image on the ‘heads’ side of the coin is higher than the rim. That stops the coins stacking correctly and the affected coins and those around them can be damaged if they are forced into a stack, Coin World reported.

The US Mint, which was informed of the problem by a customer, believes that up to 63,000 coins could have been manufactured this way but said that it was a variant, rather than an error. However, the Mint has not published pictures showing the variant.

The 2016 American Eagles have been on sale since 11 January and the US Mint at West Point has now announced the release of its 22 carat 2016 American Eagle Gold Proof Coins. They will go on sale from 17 March.

There are four different coins – a one troy ounce gold coin, a half ounce coin, a quarter ounce coin and tenth of an ounce coin. The coins will also be available to buy as a set of four. There is no maximum mintage of the new proof coins, which are all sold with a certificate of authenticity.

The heads side of the coins features an image of Liberty with flowing hair and a torch in her right hand and an olive branch in her left, designed by Augustus Saint-Gaudens. The tails side, designed by Miley Busiek, shows an eagle carrying an olive branch above a nest with a female eagle and chicks inside.

The current demand for gold from both institutional and private investors suggests that sales of the new proof coins could well be strong.

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<![CDATA[Gold prices dip but are expected to rise again]]> https://www.thegoldbullion.co.uk/blog/gold-prices-dip-but-are-expected-to-rise-again-in-volatile-markets/ https://www.thegoldbullion.co.uk/blog/gold-prices-dip-but-are-expected-to-rise-again-in-volatile-markets/ Thu, 10 Mar 2016 00:00:00 +0000 Gold prices fell on Wednesday as the dollar strengthened against the euro, but analysts expect volatility on the markets over the next few days to lead to a further hike in the cost of the precious metal.

The European Central Bank (ECB) is widely expected to reduce the cost of borrowing across the eurozone when it meets today (Thursday). This could lead to further increases in the gold price as investors head for the safe haven of the precious metal.

Gold has been enjoying a sustained rally for much of 2016. On Friday, it broke through the £900 per troy ounce mark to reach 13-month highs. Yesterday’s (9 March) prices were off that peak, standing at £883.15 at 18:30 as some profit-takers sold off investments to make the most of the strong prices. This morning, the gold price was £879.17 per troy ounce at 09:00.

One of the world’s best known gold investors, Pierre Lassonde believes the price of the precious metal will head much higher this year.

He told BNN: “The five-year bear market for gold is over and we are at the beginning of a new bull market.

“I’ve been saying for the past six months now is a good time to buy gold. You have to buy (gold stocks) when you hate them and sell them when you love them.”

Canadian government’s gold stocks ‘virtually zero’

Figures published by the Canadian government’s Finance Department show that it jettisoned almost all of its remaining gold bullion stocks in February.

Canada has been selling off its gold reserves for a number of years and the sale of 21,851 troy ounces of coins last month brings its remaining supplies down to virtually zero.

Finance Department spokesman David Barnabe told CBC News: "The decision to sell the gold was not tied to a specific gold price, and sales are being conducted over a long period and in a controlled manner.

"The government has a long-standing policy of diversifying its portfolio by selling physical commodities (such as gold) and instead investing in financial assets that are easily tradable and that have deep markets of buyers and sellers.”

However, other countries are continuing to build up their gold stocks, led by China, India and Russia. Figures from the World Gold Council show that central bank bullion buying increased by a quarter in the last six months of 2015, compared to the same period the year before.

A look at the Trump effect on gold

The race for the White House has certainly generated plenty of headlines but a side-effect of the 2016 US Presidential election could be a further increase in the price of gold, according to analysts.

The good showing of Donald Trump, who is competing for the Republican nomination, could well spook investors and increase gold’s attraction as a safe haven.

David Govett from London commodities broker Marex Spectron told the Wall Street Journal: “The mere thought [of President Trump] would suggest a good opportunity to buy gold. Who knows what could happen should he be handed the keys to the White House.”

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<![CDATA[Canada virtually sells its entire gold holdings]]> https://www.thegoldbullion.co.uk/blog/canada-sells-off-virtually-its-entire-gold-holdings/ https://www.thegoldbullion.co.uk/blog/canada-sells-off-virtually-its-entire-gold-holdings/ Wed, 09 Mar 2016 00:00:00 +0000 The Canadian government has sold off almost its entire reserves of gold, according to the latest official figures from its department of finance.

At the end of February, it held just 77 troy ounces of gold coins. The data showed that 41,106 ounces of gold coins were sold in December; 32,860 ounces in January and 21,851 in February.

Finance Department spokesman David Barnabe told CBC News: "The decision to sell the gold was not tied to a specific gold price, and sales are being conducted over a long period and in a controlled manner.

"The government has a long-standing policy of diversifying its portfolio by selling physical commodities (such as gold) and instead investing in financial assets that are easily tradable and that have deep markets of buyers and sellers.”

Canada’s peak bullion holding was in the 1960s, when had built up stocks of more than 1,000 tonnes. The figure was reduced to just 2.4 tonnes by 2003.

Although the official report does not specify which gold coins the Canadian government has sold off, the Royal Canadian Mint is a major producer of collectable bullion coins. It has sold more than 25 million troy ounces of its Maple Leaf coins internationally since 1979.

It’s likely that Canada has profited from its latest sales, as gold is continuing to enjoy a sustained rally this year due to its safe haven qualities in volatile financial and political conditions.

Indeed, while Canada has been selling, other national governments have been snapping up bullion.

The amount of gold bought by central banks in the second half of last year increased by 25 per cent compared to the same period in 2014. The data from the World Gold Council showed governments bought 336 tonnes of the precious metal in the final six months of 2015. China, India and Russia were the biggest national buyers. 

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<![CDATA[Concerns about the Trump effect expected to boost gold price]]> https://www.thegoldbullion.co.uk/blog/concerns-about-the-trump-effect-expected-to-boost-gold-price/ https://www.thegoldbullion.co.uk/blog/concerns-about-the-trump-effect-expected-to-boost-gold-price/ Mon, 07 Mar 2016 00:00:00 +0000 One unexpected effect of the 2016 US Presidential race is its impact on the gold price.

Analysts believe the good showing so far by businessman Donald Trump as he vies for the Republican nomination is likely to worry investors, and send them scuttling for gold as a safe haven investment.

There are also concerns that a Trump victory could lead to a reduction in the value of the US dollar. Traditionally, the gold price increases as the dollar weakens.

David Govett from London commodities broker Marex Spectron told the Wall Street Journal: “The mere thought [of President Trump] would suggest a good opportunity to buy gold. Who knows what could happen should he be handed the keys to the White House.”

It isn’t just the political uncertainty in the US that has helped the gold rally this year. The precious metal’s value has been helped by a number of factors according to Mining.com.

It noted the volatile geopolitical situation around the globe, including Europe the Middle East. Part of this is the upcoming poll on European Union membership in the UK, and what Brexit could potentially mean for the EU as a whole.

In addition, financial factors are also boosting gold’s popularity with investors. There are ongoing concerns about the economic outlook and the longer-term effects of a slump in oil prices. Plus, the fall in the value of stock markets amid concerns about Chinese growth have also played a part in reviving the precious metal’s attraction.

The dollar has recently been enjoying high values, but some analysts believe this period is coming to an end. Of course, the race for the White House will play a part in the currency’s value too.

Market Oracle said: “Uncertainty regarding the US Presidential election will likely aid gold. But gold’s outlook is bright whether Donald Trump, Hillary Clinton or the Messiah himself or herself becomes President.”

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<![CDATA[Unstable week for gold prices but rally continues]]> https://www.thegoldbullion.co.uk/blog/an-up-and-down-week-for-the-gold-price-but-rally-continues/ https://www.thegoldbullion.co.uk/blog/an-up-and-down-week-for-the-gold-price-but-rally-continues/ Thu, 03 Mar 2016 00:00:00 +0000 It’s been a rollercoaster week so far for the price of gold as investors reacted to continued concerns about the slowdown of the global economy.

Considered a safe haven in volatile times, the dash for gold has seen the precious metal increase in value by as much as 20 per cent so far in 2016.

This week, gold hit a high of £895.44 per troy ounce at 02:15 on Tuesday (1 March), but fell to £877.58 at 12:45 on Wednesday. This morning (Thursday 3), it stood at £884.40 at 09:00.

There are differing views in the market whether the strong gold price will be maintained. Societe Generale believes the rally cannot be sustained because it reckons fears of a recession in the US are being over-stated. However, Deutsche Bank expects gold prices to remain stable for the rest of the year.

Now may be a good time to sell to extract value from your investment, but equally, it may be worth waiting to see whether the gold value trajectory will continue to rise. It’s impossible to predict with any accuracy what the market will do, and the strong showing by gold so far this year has taken a number of analysts by surprise.

Indian jewellers strike over gold tax

The India Bullion and Jewellers Association has called a strike after the Indian government introduced a one per cent excise duty on gold jewellery in this week’s budget.

The last time the government tried to impose a gold jewellery tax in 2012, it was forced to back down as a result of industrial action taken by jewellers. It remains to be seen whether the jewellers will be as influential on government policy this time.

The Indian budget also failed to reduce the unpopular pure gold import tax, which stands at 10 per cent. In addition, the import duty on semi-pure gold doré bars was raised from 8.0 per cent to 8.75 per cent.

Importers have found it cheaper to bring doré into India and then extract and refine the gold. However, this may now cost almost as much as importing pure bullion due to the duty increase.

India is aiming to reduce its gold imports, which are estimated to account for around 25 per cent of the country’s annual trade deficit.

Superhero coins minted

The Royal Canadian Mint has introduced a limited edition run of gold and silver coins to mark the release of the Batman v Superman: Dawn of Justice action movie.

There is one gold coin, two silver coins and a cupronickel coin in the collection. Just 3,000 of the 12 gram, 14 carat $100 gold coins are being made. It features an image of the two superheroes standing back to back on the reverse.

Both the silver coins, which are 99.99 pure, are $30 editions. There will be 7,000 of Batman v Superman silver coins produced and 12,500 made of the Batman v Superman Trinity silver coins. The former weighs in at two ounces and the latter is just over one troy ounce in weight.

The Royal Canadian Mint has already issued a number of new gold and silver coins this year, celebrating everything from the country’s wildlife to a four leaf clover silver coin adorned with green enamel.

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<![CDATA[Anger as gold jewellery tax introduced in Indian budget]]> https://www.thegoldbullion.co.uk/blog/anger-as-gold-jewellery-tax-introduced-in-indian-budget/ https://www.thegoldbullion.co.uk/blog/anger-as-gold-jewellery-tax-introduced-in-indian-budget/ Wed, 02 Mar 2016 00:00:00 +0000 Indian jewellers are going on strike after the government imposed a one per cent excise duty on gold jewellery as part of its ongoing efforts to reduce imports of the precious metal.

The budget, unveiled on Tuesday (29 February), also left the controversial 10 per cent import duty for gold in place – something the market had been hoping would be reduced. The unpopular tax was originally levied in 2013 and there had been a lull in the domestic gold buying market leading up to the budget, as consumers waited to see whether taxes would be reduced.

But Indian Finance Minister Arun Jaitley did not cut the tax and now his imposition of the gold jewellery duty has set him against the country’s jewellers.

The India Bullion and Jewellers Association reacted to the announcement by calling an indefinite strike. The last time the Indian government moved to impose an excise duty on gold jewellery in 2012, it was forced to backtrack when jewellers took industrial action.

Indian gold imports are second only to China’s internationally, and according to Reuters, the amount of bullion brought into the country accounts for around a quarter of India’s annual trade deficit.

Mr Jaitley’s decision not to reduce the import duty and the imposition of the gold jewellery tax were accompanied by an increase in the import duty on semi-pure gold doré bars, to 8.75 per cent from 8.0 per cent.

Importing doré and then refining the gold contained in it had been a cheaper option than bringing pure gold into India, but the increase in duty means that once the costs of refining are taken into account, that may no longer be the case.

Association of Gold Refineries and Mints secretary, James Jose, told the Economic Times: "This budget is detrimental to the refining industry in the country. We will approach the finance ministry on this issue immediately."

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<![CDATA[Superhero range for Canadian gold and silver coins]]> https://www.thegoldbullion.co.uk/blog/superhero-movie-tie-in-features-on-new-canadian-gold-and-silver-coins/ https://www.thegoldbullion.co.uk/blog/superhero-movie-tie-in-features-on-new-canadian-gold-and-silver-coins/ Mon, 29 Feb 2016 00:00:00 +0000 Coin collectors who also have a penchant for superheroes can now chose from a new range of Batman and Superman coins produced to coincide with the forthcoming action movie.

The four Batman v Superman coins tie in with the Batman v Superman: Dawn of Justice film, which is released in March. The Royal Canadian Mint, which has produced the collectible coins, says they will be an “unforgettable series”.

There is just one gold coin in the series. Weighing in at 12 grams, the 14 carat $100 gold coin features an image of the two superheroes standing back to back. It’s set to become a collector’s item because just 3,000 are being made.

The $30 Batman v Superman two ounce silver coin is 99.99 per cent pure and shows an action scene of Batman, Superman and Wonder Woman. There will be a maximum of 7,000 of the coins minted.

The third coin is the Batman v Superman $30 Trinity silver coin, which also features the two superheroes and Wonder Woman. The coin weighs just over one troy ounce, and like the other silver coin, has a 99.99 per cent purity. There will be 12,500 of these coins produced for sale.

Finally, the collection is completed by a 25c 3D Batman v Superman edition, made from cupronickel. It features a hologram, which changes from Superman to Batman when it’s tilted. There will be 30,000 of the 13.7 gram coins produced.

The Royal Canadian Mint has produced a number of new coins already for 2016. As well as the superhero coins, it has designed a 7,500 run of four leaf clover silver coins which feature a green enamelled clover on the reverse.

The Royal Canadian Mint said: “There may only be a one in 10,000 chance of finding a four-leaf clover in an emerald field of shamrock, but with this beautiful enamel coin, the luck of the Irish is never far away.”

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<![CDATA[Gold price nears highest point in a year as investors seek safe haven]]> https://www.thegoldbullion.co.uk/blog/gold-price-nears-highest-point-in-a-year-as-investors-seek-safe-haven/ https://www.thegoldbullion.co.uk/blog/gold-price-nears-highest-point-in-a-year-as-investors-seek-safe-haven/ Thu, 25 Feb 2016 00:00:00 +0000 The gold price reached almost £900 per troy ounce on Wednesday, nearing its highest point in almost a year.

At 15:15 yesterday (24 February) it stood at £897.33, up from £853.63 at 09:00 on Monday (22 February). This morning, gold cost £889.26 per troy ounce at 09:00.

Gold is offering its traditional safe haven for investors during choppy economic waters. Statistics released in the US this week showed the services sector shrank for the first time since late 2013, and disappointing house sales data was also published for January.

Although gold generally rises when the US dollar is weak, it gained strength yesterday while the dollar was performing well, although the currency lost value later in the day.

Jens Pedersen, senior analyst at Danske Bank, told Reuters yesterday: “Gold is rising on the back of weak risk appetite, but what stands out today (Wednesday) is that the market is rising even though the dollar is higher as well.”

Is gold a better safe haven that silver?

Investors seeking a safe haven for their cash generally turn to gold or silver. Of the two precious metals, gold is obviously the more expensive but is also often seen as a less volatile, and therefore a less risky investment than silver.

One of the reasons gold is thought to be a steadier choice is because silver is used more in industrial applications, so silver’s price is more dependent on the performance of the markets.

Russ Mould from broker AJ Bell told the Daily Telegraph: “Only 10 per cent to 15 per cent of gold demand comes from jewellery and industrial uses, while for silver this figure exceeds 50 per cent as it is used in areas such as batteries, LEDs, solar energy, dentistry and photography.

“Silver’s greater industrial use means it is more sensitive to the industrial cycle and potentially less of a haven than gold. This is also reflected in silver’s greater historic price volatility.”

Investing in gold bullion bars or gold or silver coins comes down to personal budgets and your own analysis of the market. As the old adage says: “You pays your money and makes your choice.”

Indian gold imports fall

India is set to record gold imports of around 25 tonnes this month, a two-year low for the world’s second biggest gold bullion buying nation.

It comes amid efforts by the Indian government to reduce its gold import duty costs, which stood at $36 billion last year.

Within the Indian market, demand for the precious metal has been subdued while consumers and jewellers wait to see whether the government will reduce the import tax in its budget at the end of the month. A similar dampening down of demand was seen ahead of the last budget, when the Indian government failed to reduce the duty.

The import duty was set at a record high of 10 per cent in 2010 as part of efforts to reduce the amount of gold flowing into India. However, this resulted in an upswing in smuggling; Reuters estimates that around 175 tonnes of gold were illegally brought into the country in 2014. 

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<![CDATA[Indian gold imports fall as buyers await budget decision on duty]]> https://www.thegoldbullion.co.uk/blog/indian-gold-imports-fall-as-buyers-await-budget-decision-on-duty/ https://www.thegoldbullion.co.uk/blog/indian-gold-imports-fall-as-buyers-await-budget-decision-on-duty/ Wed, 24 Feb 2016 00:00:00 +0000 Efforts by the Indian government to reduce the country’s reliance on imports of gold appear to be having some knock-on effects.

Market analysts say that the country – the world’s second biggest buyer of the precious metal after China – will record a two-year import low of around 25 tonnes in February. The figure will be a welcome relief to the Indian government, which had to pay $36 billion in gold import costs last year.

Bachhraj Bamalwa, director at All India Gems and Jewellery Trade Federation, told Reuters: “Banks and trading agencies have scaled down imports. They are being forced to offer heavy discounts (to global prices) to clear inventory.

“Consumers are not sure about price trends. They are waiting for prices to stabilise before making purchases.”

The weaker demand from India could impact the current strong gold prices being seen on the world markets. The price of bullion is currently 15 per cent higher than it was at the start of the year and is enjoying its best sustained rally since August 2011.

However, Indian gold dealers are not benefiting from the high prices seen elsewhere and have been offering discounts in an effort to attract buyers. Analysts say that jewellers and retail buyers are biding their time to see whether the Indian government reduces the import duty on gold in the forthcoming budget at the end of the month. A similar drop in domestic gold prices was experienced before the country’s last budget, when the government did not meet the market’s expectation of a cut in duty.

Sources:

India’s import duty for gold was set at 10 per cent in 2013 as it tried to reduce the amount of gold that was brought into the country. However, it had the effect of boosting smuggling and Reuters reported that around 175 tonnes of bullion were smuggled into India in 2014.

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<![CDATA[Which precious metal investment to choose in the current climate ]]> https://www.thegoldbullion.co.uk/blog/gold-or-silver-which-precious-metal-investment-to-choose-in-the-current-climate/ https://www.thegoldbullion.co.uk/blog/gold-or-silver-which-precious-metal-investment-to-choose-in-the-current-climate/ Mon, 22 Feb 2016 00:00:00 +0000 When looking for a safe haven investment, both gold and silver are popular choices. But which is the best choice during the current market volatility?

Gold is generally considered the number one safe haven investment, whether you are looking at bullion bars or coins, or buying into the precious metals futures markets.

Russ Mould from broker AJ Bell told the Daily Telegraph that gold can be less volatile than silver.

He said: “Only 10 per cent to 15 per cent of gold demand comes from jewellery and industrial uses, while for silver this figure exceeds 50 per cent as it is used in areas such as batteries, LEDs, solar energy, dentistry and photography.

“Silver’s greater industrial use means it is more sensitive to the industrial cycle and potentially less of a haven than gold. This is also reflected in silver’s greater historic price volatility.”

However, investing in silver is also worth considering. During the global economic downturn, the gold price jumped by 70 per cent between 2008 and 2010, but the value of silver doubled.

Since the start of this year, both silver and gold prices have performed well. Analysts say that although silver can potentially out-perform gold, it can be a more risky investment.

One method of deciding which precious metal to choose for your investment is to look at what’s called the gold-silver ratio – or how many ounces of silver are needed to buy one troy ounce of gold

The average ratio stands at around 55 although it has swung wildly over the years. The peak ratio recorded was almost 100 in 1991, compared to just 20 back in 1970.

Mr Mould said: “In the past 100 years the ratio has gone below 20 three times and neared 100 twice, so silver does look cheap relative to gold, although there is nothing to say gold cannot go higher still relative to silver, if history is any guide.”

Like any investment, remember the price of both gold and silver goes down as well as up and it’s down to personal choice which precious metal you go for.

Sources:

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/12161963/I-am-looking-for-a-safe-haven-should-I-buy-silver-instead-of-gold.html

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<![CDATA[Gold remains stable after US Federal Reserve publishes minutes]]> https://www.thegoldbullion.co.uk/blog/gold-remains-stable-after-us-federal-reserve-publishes-january-minutes/ https://www.thegoldbullion.co.uk/blog/gold-remains-stable-after-us-federal-reserve-publishes-january-minutes/ Thu, 18 Feb 2016 00:00:00 +0000 The gold price jumped midweek after falling back on Monday and Tuesday, as investors awaited publication of the US Federal Reserve’s minutes, and it remained stable after they were issued.

The minutes, from the US interest rate-setting body’s January meeting, said that members would continue to closely watch the performance of the global economy and revealed there had been discussions about halting the current policy of increasing the cost of borrowing. Although the minutes said that it was too early to change course, analysts believe that rate rises will not happen as quickly as seemed likely in December, when the US cost of borrowing was increased for the first time in almost a decade.

This is all good news for the strength of the gold price, which has already jumped around 14 per cent this year. It stood at £847.15 per troy ounce at 18:30 yesterday (Wednesday 17 February) and was slightly lower at £844.47 at 09:00 this morning (Thursday).

Natixis analyst Bernard Dahdah told Reuters: "The Fed rate hike most likely won't happen in March, and that for me is the most important driver behind the price of gold.

"Even if the wider markets improve slightly, as we've seen in the last few days, if people still believe the rate hike won't take place in March it will be hard to see gold prices continuing a downward movement.”

Strong gold demand forecast to continue

The strong international demand for gold from corporate and individual investors seen during 2015 is predicted to continue this year, according to the World Gold Council (WGC).

Its latest data, published in the new Gold Demand Trends, showed that high demand for the precious metal in the last six months of 2015 meant that 4,212 tonnes of gold were sold over the course of the year.

China, followed by India, remained the world’s biggest gold buying nation, while Chinese, European and US investors led the demand for gold bullion bars and coins.

WGC head of market intelligence, Alistair Hewitt, said: “Looking ahead, physical demand will continue to be supported by strong central bank purchases, and continued buying of jewellery, bars and coins by households across the world, led by India and China. If we just look at the year to date, the investment case for gold is as strong as ever. While stock markets have wobbled, gold has performed well.”

Latest Isle of Man Angel coins issued

In other news, the Isle of Man has launched its 2016 edition of the Angel gold bullion coin, continuing the series it started producing in 1984.

The coin, which features Queen Elizabeth II on one side and St Michael slaying a dragon on the other, is a legal tender with a fine gold purity of .999 that weighs in at one troy ounce.

Angel coins originated from France, where they were known as ange or angelot coins, and were believed to protect the holder against bad luck and poor health. They were said to be especially useful in guarding against ‘the King’s evil’, also known as scrofula, a glandular swelling in the neck.

Gold may not protect you from illness but it can help to protect your investments from the vagaries of the stock market and the effects of volatile international events.

Jeffrey Nichols of American Precious Metals Advisors told CNBC that he recommends his investors hold 10 to 15 per cent of their investable assets in bullion coins. 

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<![CDATA[Gold demand recorded in 2015 is expected to be the same in 2016]]> https://www.thegoldbullion.co.uk/blog/strong-gold-demand-recorded-in-2015-and-wgc-predicts-more-of-the-same-in-2016/ https://www.thegoldbullion.co.uk/blog/strong-gold-demand-recorded-in-2015-and-wgc-predicts-more-of-the-same-in-2016/ Wed, 17 Feb 2016 00:00:00 +0000 Demand for gold last year was on a par with the previous 12 months, with a strong second half making up for weaker demand in the first six months of 2015, according to statistics just published by the World Gold Council (WGC).

Its new Gold Demand Trends report found that “sustained buying” from central banks around the world - plus continued strong demand from China and India in the second half of the year – resulted in stable gold sales for 2016 as a whole.

Investors in China and Europe drove up sales of gold bullion coins and bars, with sales also strong in the US. The WGC said that financial and political tension, coupled with good value gold prices fuelled investor demand during the second half of the year. Globally, investment in the precious metal rose by eight per cent to 878 tonnes from 815 tonnes in 2014.

China remained the world’s biggest buyer of gold in 2015, snapping up 985 tonnes, an increase of two per cent on the year before. India was the second biggest international player in the market, buying 849 tonnes in total, a rise of one per cent on its 2014 total. The two countries combined were responsible for buying almost 45 per cent of the precious metal sold internationally.

Central banks slightly increased their annual demand for gold, buying in 588 tonnes compared to 584 tonnes the previous year. The WGC said that reduced confidence in the international economy and the falling price of oil drove demand.

WGC head of market intelligence, Alistair Hewitt, said: “In a year that saw global economic and stock market turmoil, the first US interest rate rise in nine years and falling oil prices, demand for gold remained resilient, coming in at 4,212 tonnes for the full year.

“Looking ahead, physical demand will continue to be supported by strong central bank purchases, and continued buying of jewellery, bars and coins by households across the world, led by India and China. If we just look at the year to date, the investment case for gold is as strong as ever. While stock markets have wobbled, gold has performed well.”

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<![CDATA[Isle of Man issues the legal tender Angel gold bullion coin]]> https://www.thegoldbullion.co.uk/blog/isle-of-man-issues-2016-edition-of-the-legal-tender-angel-gold-bullion-coin/ https://www.thegoldbullion.co.uk/blog/isle-of-man-issues-2016-edition-of-the-legal-tender-angel-gold-bullion-coin/ Mon, 15 Feb 2016 00:00:00 +0000 Gold bullion coin collecting is one of the best ways to invest in gold, and as we’ve reported in recent weeks, there have been a number of new coins issued already this year.

The Isle of Man is the latest to launch its new coin for 2016. The Angel bullion coin series started in 1984 and can be used as legal tender as well as being a valuable collectible.

On one side, the coin carries an image of Queen Elizabeth II, while the other features St Michael slaying a dragon. The 2016 Isle of Man Angel weighs 31.103g and has a fine gold purity of .999.

Angel coins have an interesting heritage. The English version, introduced by Edward IV in 1465, was based on the French ange or angelot coin which was named after the angel that appeared in the design. Traditionally, the coin was believed to bring good health and good luck and was given to sufferers of scrofula – known as ‘the King’s evil’ – a tuberculosis-type swelling of glands in the neck.

While possession of gold bullion coins may not keep modern collectors free from disease, choosing this form of gold investment is still considered a healthy way of building up individual stocks of the precious metal.

According to Jeffrey Nichols of American Precious Metals Advisors, buying physical gold you can hold in your hand remains a sensible option. He told CNBC this is “most liquid form of gold” and also has the benefit of being difficult to counterfeit. Mr Nichols recommended that investors have around 10 to 15 per cent of their investable assets in bullion coins.

Gold bullion coin collecting is an interesting hobby that can pay long-term dividends because as well as the value of the gold in the coin, the additional value that rare coins can command tends to increase over time. 

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<![CDATA[Fed unlikely to reverse rates hike policy]]> https://www.thegoldbullion.co.uk/blog/fed-unlikely-to-reverse-rates-hike-policy-but-gold-stays-strong/ https://www.thegoldbullion.co.uk/blog/fed-unlikely-to-reverse-rates-hike-policy-but-gold-stays-strong/ Thu, 11 Feb 2016 00:00:00 +0000 The gold price remained stable this week, as it enjoys a prolonged rally amid concerns about the global economy and specifically slowing growth in China.

Analysts were waiting for the US Federal Reserve’s chair to speak to Congress yesterday (Wednesday) to see what her remarks on the future direction of US interest rates might do to the value of the precious metal.

Janet Yellen told Congress that although there were more risks apparent in the international economy than when the Fed acted to increase the cost of borrowing in December last year – the first US rate hike in almost a decade – she saw no reason to reverse the current policy.

She said: "I think we want to be careful not to jump to a premature conclusion about what is in store for the US economy. I don't think it is going to be necessary to cut rates."

Although gold is seen as a safe investment in troubled economic times, her calming words did little to affect the demand for the precious metal. At 17:00 yesterday (10 February), gold was valued at £825.25 per troy ounce and this morning at 09:00, it had added another £20 to be valued at £845.19.

The gold price has remained strong despite the Chinese markets being closed for the Chinese New Year holiday.

How high will the gold price rise?

The value of gold has climbed by almost 10 per cent since the start of this year, and analysts are expecting further increases in the value of the precious metal.

Michael Widmer from BofA Merrill Lynch Global Research told CNBC that he expects the gold to reach a value of $1,250 per troy ounce – around £862 at current exchange rates – by December this year.

The rosy outlook has been echoed by numerous analysts, many of whom had previously taken a less than positive view that the gold price would continue to climb.

Carsten Menke, a commodities research analyst at Julius Baer, said in a note: "Due to prevailing risk aversion in financial markets and mounting global growth risks, a bearish outlook on gold is not warranted anymore.

"We have turned neutral and believe that investors should use gold as insurance in their portfolios."

New limited edition coins launched

Both the US Mint and the Royal Canadian Mint have launched some limited edition gold bullion and silver coins for collectors this month.

The US Mint and the Ronald Reagan Foundation are marking the 105th anniversary of the birth of the former Hollywood star and 40th US President by issuing the Ronald Reagan Presidential $1 Coin and Nancy Reagan First Spouse Coin. The Mint has been producing coins featuring past presidents since 2007.

In Canada, the coins are wilder in nature. The 99.999 per cent purity, one troy ounce 2016 Roaring Grizzly Gold Coin is the latest addition to the Call of the Wild series.

The Royal Canadian Mint is also issuing four silver coins in the Predator series, which will each feature a different Canadian animal of prey. The first, which has a limited one million coin run, is decorated with the image of a leaping cougar. 

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<![CDATA[Gold starts with strong January 2016 performance]]> https://www.thegoldbullion.co.uk/blog/gold-marks-start-of-2016-with-strong-january-performance/ https://www.thegoldbullion.co.uk/blog/gold-marks-start-of-2016-with-strong-january-performance/ Mon, 01 Feb 2016 00:00:00 +0000 The gold price ended January almost five per cent higher than it started the year, after turmoil in the international stock markets sent investors heading for a safe haven for their cash.

The turnaround in gold’s fortunes, leading the precious metal to its biggest monthly gain in a year, coincided with a 7.4 per cent fall in the value of US equities, the biggest drop since 2010. Gold’s value has increased after it fell to six-year lows in November and December 2015.

Whether gold can continue its strong performance will depend on outside influences, according to analysts. Economic figures from China are expected to play a key role in how investors use their money, with evidence of a slowdown as seen during January likely to benefit the value of the precious metal.

Feifei Li, analyst at Barclays, said in a note: “If a hard landing scenario for China were to materialise, it would likely spur safe haven demand, and could potentially prompt the Fed to reverse its tightening policy.

“On the other hand, a quick recovery in China may lead to greater risk appetite and continued rate hiking in the US.”

Last week, the Fed left interest rates on hold following December’s 0.25 per cent increase. Increasing the cost of borrowing generally happens when the economy is expanding and after the events of January in the markets, analysts are less inclined to bet on a further rise being imminent. The vote among rate-setters to leave the cost of borrowing on hold at the January meeting was unanimous.

While this is a positive for the value of gold, further poor economic news from China could also see the price of the precious metal rise further.

Gold started 2016 at £719.99 per troy ounce at 12.30pm on January 1 and had increased to £784.90 at 22.30 on Friday (29 January), where it remained until the markets opened this morning (Monday). Gold was valued at £785.15 per troy ounce at 09:00 today.

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<![CDATA[Gold price stays strong as the Fed leaves US rates unchanged]]> https://www.thegoldbullion.co.uk/blog/gold-price-stays-strong-as-the-fed-leaves-us-rates-unchanged/ https://www.thegoldbullion.co.uk/blog/gold-price-stays-strong-as-the-fed-leaves-us-rates-unchanged/ Thu, 28 Jan 2016 00:00:00 +0000 Gold has continued to enjoy strong prices this week as the value of the US dollar slipped ahead of the US Federal Reserve’s announcement yesterday (Wednesday) that it would not increase the cost of borrowing this month.

Market analysts now believe the Fed is less likely to increase rates over the next few months than in December, when it raised them by 0.25 per cent – the first increase in almost a decade. Since December, however, global markets have been rocked by news of the slowing Chinese economy and falling oil and equities prices.

The volatility has seen investors return to the safe haven of gold, with the spot price increasing by six per cent so far this month, compared to the 10.4 per cent drop it suffered during 2015.

At 08:15 on Tuesday (26 January), the value of gold was £786.86 per troy ounce and although it slipped slightly to £783.63 by 17:00 on Wednesday, prices remain strong. Gold was valued at £784.78 per troy ounce at 09:15 this morning (Thursday).

China, which is the world’s biggest gold buyer, is continuing to build up its stocks of the precious metal, with data published earlier this week showing that the country imported its highest levels of gold for two years in December 2015.

Helen Lau, analyst at Argonaut Securities, told Reuters she expects the country to continue snapping up bullion in the run-up to February’s Chinese New Year holiday.

She added: “China has taken advantage of low gold prices and an equity market rout to stock up on gold assets.”

High demand for gold and silver coins

The strong demand for gold currently being seen on the global markets is being reflected in gold bullion and silver coin sales.

The US Mint has been forced to ration supply of its 2016 American Silver Eagle coins to one million a week because of silver planchet shortages.

It has also sold more of the 2016 Mark Twain commemorative gold $5 Half Eagle coin than it anticipated, with some orders having to wait to be fulfilled. It can legally only produce 100,000 of the limited edition coins and 350,000 Mark Twain silver dollars this year.

Gold bullion and silver coins are popular forms of investment in precious metals because as well as holding their value as gold and silver, they also benefit from the collectable nature of limited edition runs. This often adds to their value over the longer term.

India’s gold monetisation scheme proves popular

The Indian government has announced that 900kgs of gold has been collected as part of its monetisation scheme which was launched on 5 November last year.

The programme is designed to persuade people to part with gold stocks they have at home and help reduce the country’s gold import bill. Gold is India’s second biggest import cost after oil.

The monetisation scheme gives banks permission to collect gold from customers and pay out 2.5 per cent interest on the value of their precious metal.

There is an estimated 20,000 tonnes of gold held in Indian homes and temples that the government is keen to bring back into circulation, so it can reduce the country’s reliance on imports of the precious metal.

Sources:

http://www.reuters.com/article/global-precious-idUSL3N15B185

http://www.reuters.com/article/us-usa-fed-idUSKCN0V50GQ?utm_source=twitter

 

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<![CDATA[Gold & silver coin demand continues into January ]]> https://www.thegoldbullion.co.uk/blog/strong-gold-and-silver-coin-demand-continues-into-january/ https://www.thegoldbullion.co.uk/blog/strong-gold-and-silver-coin-demand-continues-into-january/ Wed, 27 Jan 2016 00:00:00 +0000 Gold bullion and silver coins are in high demand, according to figures from the US Mint, which has received such high demand that it has decided to ration some coins due to shortages.

Its 2016 American Silver Eagle coin supply is currently being restricted to one million a week due to shortages of silver planchet. Last week, it sold almost 73 per cent of the available supplies. Since the coin became available on January 11, the Mint has recorded its highest monthly sales since October 2014.

Strong demand is also apparent in the gold bullion coin market as investors snap up coins at their current reasonable prices amid speculation the price of gold is set to continue rising due to the volatile global economy.

The US Mint has reported higher than expected sales of its 2016 Mark Twain commemorative gold $5 Half Eagle coin, which resulted in it having to put some demands on ‘back order’. Between 14 January when the coins went on sale and 21 January, 6,889 of the Proof coins and 3,284 of the Uncirculated versions had been sold. Legally, only 100,000 of the limited edition coins can be produced.

The Mint is also issuing a maximum of 350,000 Mark Twain silver dollars in 2016.

This year is already showing signs of being another strong one for coin sales following 2015’s excellent figures. The US Mint broke sales records for silver coins for the third consecutive year in 2015, and demand was buoyant for gold coins too. By November, the Mint had sold all of its 2015 one troy ounce gold American Eagle bullion coins.

Gold bullion and silver coins are an excellent way to invest in gold or silver. In addition to the value of the precious metal, limited edition coins obviously have a collectable value among enthusiasts, which is something that is likely to increase as time goes on.

 
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<![CDATA[India's step to reduce gold imports makes success]]> https://www.thegoldbullion.co.uk/blog/india-s-attempts-to-reduce-gold-imports-show-signs-of-success/ https://www.thegoldbullion.co.uk/blog/india-s-attempts-to-reduce-gold-imports-show-signs-of-success/ Mon, 25 Jan 2016 00:00:00 +0000 India’s gold monetisation programme has so far pulled in 900kgs of the precious metal since it was launched on November 5 last year.

The figure was announced by Economic Affairs Secretary Shaktikanta Das, who tweeted: “Gold Monetisation Scheme: More than 900 kgs gold mobilised so far. Scheme making steady progress. Expected to pick up in coming months."

The Indian government opened up the scheme to persuade people to part with some of the estimated 20,000 tonnes of gold that is currently stored in homes and temples. The country is the world’s second biggest gold importer after China and the precious metal accounts for India’s second biggest import bill after crude oil.

The monetisation scheme is aiming to reduce the import costs and help meet domestic demand from consumers. The programme is one of a number of measures, including gold recycling centres, where ‘scrap’ or unwanted gold can be exchanged for cash. The precious metal is then turned into bullion bars to be sold to investors within India.

In November, the Indian government authorised banks to collect gold for up to 15 years. The stocks can be auctioned or loaned to jewellers, while those depositing the precious metal earn a return of 2.5 per cent interest on the value of their gold.

People depositing their gold do so through 46 authorised Assaying and Hallmarking Centres which have been designated as Collection and Purity Testing Centres for the scheme. Participating banks are also able to take gold deposits from their customers.

Last year, India imported 900 tonnes of gold, a rise of 25 per cent on 2014. Buyers benefited from a good time to buy gold while the value of the precious metal was lower on world markets. Analysts will be watching the stock markets closely this week after last week’s volatility, which sent the gold price higher as investors sought a safe haven for their cash.

 
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<![CDATA[Falling stock markets send investors for safe haven of gold]]> https://www.thegoldbullion.co.uk/blog/plummeting-stock-markets-send-investors-heading-for-safe-haven-of-gold/ https://www.thegoldbullion.co.uk/blog/plummeting-stock-markets-send-investors-heading-for-safe-haven-of-gold/ Thu, 21 Jan 2016 00:00:00 +0000 The gold price is climbing as investors head for a safe haven amidst turmoil on the world stock markets.

Plunging oil prices, a fall in the value of the dollar and unsettling news about the growth prospects of the global economy all sent jitters through the markets this week.

In London, the FTSE-100 index closed down by 203.2 points on Wednesday (20 January) and falls were observed across Europe and the US. Global stock markets have fallen to their lowest levels since 2013, and many are now classed as ‘bear’ markets – showing a drop of 20 per cent or more from their recent peaks.

Andreas Clenow, hedge fund trader and principal at ACIES Asset Management, told the BBC: "I am quite pessimistic about the equity markets for the next two to three months. I do not see a 2008-style scenario, but I do see a bear market coming."

What does the market turmoil mean for the gold price?

Gold has long been considered a safe haven for investment during volatile times. Already, the gold price is rising on the back of disappointing oil prices and economic worries, consolidated by news that the International Monetary Fund (IMF) has downgraded its world growth forecast for 2016.

The gold price per troy ounce rose from £760.55 at 08:00 on Monday (18 January) to £767.62 at 18:00 on Tuesday and hit £781.26 by 18:30 on Wednesday. This morning at 09:00, it has slipped slightly to £776.92.

However, much of the weakness in the markets has been provoked by poor economic growth data coming from China, the world’s biggest buyer of gold. The precious metal’s prices may not rise as rapidly as expected if China does not continue its volume-purchasing.

The markets are also currently not experiencing inflationary pressures. Gold is considered a good hedge against inflation and tends to rise in price during inflationary periods. That means that now remains a good time to buy gold with further prospects of price growth still on the horizon should inflationary pressures increase.

Rob Haworth, senior investment strategist for US Bank Wealth management, said: "There's not a lot of appetite to bid up gold when you don't have an inflation issue."

Indian gold imports rise in 2015

In other global gold market news, figures from India, second only to China in the world gold-buying league, show the country’s gold imports increased by a quarter in 2015.

India bought in 900 tonnes of the precious metal last year, with December seeing particularly high import figures as buyers took advantage of a relatively weak gold price.

Analyst Sudheesh Nambiath, from GFMS Thomson Reuters, said: “Gold demand increased in December when prices were at the lowest level in 2015, and as retailers increased their inventory to optimum levels. Our estimate for December import is 107 tonnes.”

The Indian government has introduced a number of measures to free up stockpiles of the precious metal held in the country and reduce its reliance on imports to meet demand. These include monetising gold and encouraging gold recycling, where jewellery is turned into bullion bars to be sold on the domestic market.

 
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<![CDATA[Gold price steadies after economy slows]]> https://www.thegoldbullion.co.uk/blog/gold-price-steadies-as-the-dollar-dips-and-chinese-economy-slows/ https://www.thegoldbullion.co.uk/blog/gold-price-steadies-as-the-dollar-dips-and-chinese-economy-slows/ Wed, 20 Jan 2016 00:00:00 +0000 A weakening of the US dollar and further evidence of the slowing Chinese economy helped the gold price to steady on the markets this week.

International investors returned to the market yesterday (Tuesday) after the annual Martin Luther King Day holiday in the US. The gold price per troy ounce jumped from £760.55 at 08:00 on Monday (18 January) to £767.62 at 18:00 on Tuesday. At 09:00 this morning (Wednesday), it had increased further to £775.06.

Figures from China showed that its economy grew at its slowest rate in six years during the last quarter of 2015.  

Danske Bank senior analyst Jens Pedersen told Reuters: "As long as there is confusion about how China manages exchange rate policy, how they will intervene in the stock market and so on, there will be some safe-haven demand for gold.

"However, even though we have seen a re-pricing of the Fed's rate hike this year (the market doesn't expect a full rate hike before December), we haven't seen much dollar weakness and that's because the market is expecting monetary easing from other central banks."

The US currency did weaken on Tuesday, falling by around 0.1 per cent in value compared to other currencies. This makes gold a cheaper option to buy for investors in other countries. Typically, gold prices strengthen when the value of the dollar weakens.

Although the slowing of the Chinese economy has sent some investors scurrying for gold as a safe haven for their money, analysts are also waiting to see whether the Chinese authorities will make any moves to stimulate their economy.

Plus, the weakening of Chinese consumers’ spending power may also affect the gold price given that China is the world’s biggest buyer of the precious metal. Furthermore, demand from India, the second biggest gold purchaser, is also limited because this point in the year is traditionally believed to be inauspicious to buy bullion.

 
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<![CDATA[Rise in Indian gold imports pushes annual figure to 900 tonnes]]> https://www.thegoldbullion.co.uk/blog/sharp-rise-in-indian-gold-imports-in-december-pushes-annual-figure-to-900-tonnes/ https://www.thegoldbullion.co.uk/blog/sharp-rise-in-indian-gold-imports-in-december-pushes-annual-figure-to-900-tonnes/ Mon, 18 Jan 2016 00:00:00 +0000 India imported an estimated 100-plus tonnes of gold in December, pushing up the country’s annual imports of the precious metal to 900 tonnes during 2015.

The figure for the last 12 months was 25 per cent higher than 2014, and comes despite efforts by the Indian government to meet the country’s insatiable demand for gold by persuading more people to part with their stockpiles of the precious metal. Recycling centres are springing up to melt down ‘scrap’ jewellery into bullion bars, and there are plans to launch India’s first physical gold exchange this year. (https://www.thegoldbullion.co.uk/blog/gold-recycling-expected-to-be-a-key-trend-in-2016/)

However, these moves appear to have done little to meet the demand for gold from what is the world’s second-largest gold importing nation after China.

Figures for December show a spike in demand during the first and last weeks of the month which both saw lower gold prices on the world markets. Indian investors took advantage of these good times to buy the precious metal, helping to push the annual spending on imported gold up to an estimated £24.5 billion for 2015. However, despite the cost of gold imports increasing on 2014, the figure was down on 2011 and 2012 which were India’s biggest gold importing years of the decade so far.

Analyst Sudheesh Nambiath, from GFMS Thomson Reuters, commented: “Gold demand increased in December when prices were at the lowest level in 2015, and as retailers increased their inventory to optimum levels. Our estimate for December import is 107 tonnes.”

Indian gold buying during the first two weeks of 2016 has been subdued, according to the Business Standard, as this point in the New Year is traditionally considered an inauspicious time to buy the precious metal.

A bullion dealer told the publication: “Indian demand for gold may or may not increase even when prices are around bottom but they take inauspicious days seriously.”

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<![CDATA[Analysts keep a sharp eye on international economy after dip]]> https://www.thegoldbullion.co.uk/blog/gold-price-dips-but-not-by-much-as-analysts-keep-a-sharp-eye-on-international-economy/ https://www.thegoldbullion.co.uk/blog/gold-price-dips-but-not-by-much-as-analysts-keep-a-sharp-eye-on-international-economy/ Thu, 14 Jan 2016 00:00:00 +0000 Gold has recently been enjoying nine-week highs in value but has been unable to sustain its climbs this week as the US dollar strengthened once again.

Analysts are waiting for further direction on possible interest rate rises in the US, and say that while the market expects the cost of borrowing to increase, the attraction of gold as a safe haven has less of a pull.

Matthew Turner from Macquarie told Reuters: "The pause in the gold rally underlines the difficulty gold has in rallying when there is expectation of Fed rate hikes, even if other news is supportive.

"People still think the dollar and rates are going up and therefore the medium-term case is bearish."

However, there remains uncertainty in the Chinese market, which was one of the reasons the gold price rallied last week.

Mr Turner added: "It doesn't mean it's all over; the market is pretty short and a lot of the uncertainty about the global economy has not been resolved."

On Wednesday (13 January), the precious metal started the day at £748.16 per troy ounce at 09:00 and had increased in value to £754.80 by 17:30. This morning (Thursday 14 January), gold was valued at £758.02 per troy ounce at 09:00.

Uncertainty in the economy

The gold price traditionally increases during periods of economic and political uncertainty; it is the famous ‘safe haven’ that investors turn to in difficult times to keep their cash secure. Although they may not earn a high rate of return, there is the confidence that their investment will not plunge in value in the same way that more risky stock market investments can.

Currently, there are concerns about the UK’s economic growth, provoked by worse than expected output figures released by the Office for National Statistics (ONS).  Figures published on Tuesday showed that rather than rising as forecast, manufacturing output during November was actually down by 0.4 per cent and the broader industrial sector’s output fell by 0.7 per cent.

The uncertainty generated by this data makes gold look an attractive investment proposition and analysts will be watching the market closely for further evidence that the UK economy may be slowing.

Gold recycling – a trend to watch in 2016

There have been efforts for some time in India – the world’s second-biggest buyer of gold after China – to reduce the reliance on gold imports and release the amount of the precious metal being held by people throughout the country.

The latest move to stop people hoarding gold is to encourage them to recycle it. Muthoot Exim, the precious metals division of Indian business giant Muthoot Pappachan, is working to increase the country’s five gold recycling centres to 16 by the end of 2017.

The company has just opened its first new gold recycling centre of 2016, where people can bring broken or scrap jewellery and other gold items. The precious metal is then melted down and refined before being turned into gold bullion bars to be sold to domestic investors.

India has already monetised gold and there are proposals to open the country’s first physical gold trading exchange.

 
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<![CDATA[New Year gold rally not sustainable as US dollar strengthens]]> https://www.thegoldbullion.co.uk/blog/new-year-gold-rally-not-sustainable-as-us-dollar-strengthens-again/ https://www.thegoldbullion.co.uk/blog/new-year-gold-rally-not-sustainable-as-us-dollar-strengthens-again/ Wed, 13 Jan 2016 00:00:00 +0000 The gold price pulled back this week following a New Year rally that has been fuelled by concerns about China’s slowing economy and international political volatility.

Expectations that further interest rate rises are on the way in the US and a strong performance by the US dollar resulted in some losses in value for the precious metal. However, the price of gold has not slipped dramatically; the gold price per troy ounce stood at £755.88 at 10:00 on Monday (11 January) and had dipped slightly to £753.10 by 17.30 yesterday (Tuesday 12 January). This morning at 09:00, gold was trading at £748.24 per troy ounce.

Investors headed to the safe haven offered by gold last week as Saudi Arabia cut diplomatic ties with Iran and North Korea announced it had carried out a nuclear test. But this week, there has as yet been no unnerving international news of the type that typically leads to a gold rally.

Gold generally rises in tandem with oil prices, and dips when the value of the US currency increases. The gold price has obeyed these market trends so far this week, as crude oil fell to its lowest price in 12 years and the US dollar strengthened against the pound.

However, the longer-term picture is impossible to predict accurately. Analysts were surprised by gold’s increasing value last week, after the precious metal had just slumped to its third successive year of declining prices.

The value of gold could now well increase again in the coming months amid concerns about Britain’s economic recovery.

Figures released on Tuesday by the Office for National Statistics showed that UK manufacturing output fell by 0.4 per cent in November and the broader industrial sector’s output was down by 0.7 per cent. The data confounded expectations that manufacturing output would rise by 0.1 per cent.

So, with gold investing – as in every type of investment decision – it’s vital to watch the markets and the economic trends, but also to be aware that unexpected political events can also make a major difference to the value of the precious metal.

 

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<![CDATA[Gold recycling expected to be a key trend in 2016]]> https://www.thegoldbullion.co.uk/blog/Gold-recycling-expected-to-be-a-key-trend-in-2016/ https://www.thegoldbullion.co.uk/blog/Gold-recycling-expected-to-be-a-key-trend-in-2016/ Mon, 11 Jan 2016 00:00:00 +0000 Recycling gold looks set to be a major trend to watch in 2016.

India, which is a key international gold bullion market ranking second only to China for the volume of the precious metal it buys, has been attempting to reduce the amount of gold it imports.

As we reported in December, the Indian government has already monetised gold and introduced sovereign bond schemes as part of a wider initiative to persuade people not to hoard gold supplies. It is aiming to reduce the amount of gold imported into India, and the push to recycle more ‘scrap’ gold is part of this effort.

The country now has five gold recycling centres. Muthoot Exim, the precious metals division of the established business group Muthoot Pappachan, aims to be operating 16 Muthoot Gold Point centres by the end of next year and has set a target of recycling two tonnes of scrap gold by 2018.

The centres buy old and broken gold jewellery and other items from the public. The metal is refined before being recycled into bullion bars to be sold to investors within India.

Keyur Shah, CEO of Muthoot Precious Metals division, said: “Muthoot Gold Point has a strategic significant importance, as it aligns with Government's objectives and supreme priority of keeping Current Account Deficit (CAD) under control, by garnering and channelising domestic unused gold to productive use and also to provide a standardised, transparent and scientific platform to end customers to sell their gold.”

The first of the new centres was opened in Bhowanipur in Kolkata, and a further two are earmarked to be operational by March this year.

Until the business group opened its first recycling centre, the practice was mainly carried out on an unregulated basis.

The new centres are part of a pattern to offer greater transparency in the Indian gold market. The market also expects to see the opening of its first physical gold exchange this year, which will regulate gold buying and selling.

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<![CDATA[Gold price hits a four-week high on market & political volatility]]> https://www.thegoldbullion.co.uk/blog/gold-price-hits-a-four-week-high-on-market-and-political-volatility/ https://www.thegoldbullion.co.uk/blog/gold-price-hits-a-four-week-high-on-market-and-political-volatility/ Thu, 07 Jan 2016 00:00:00 +0000 International turmoil, both on the markets and politically, has sent the gold price soaring to a four-week high as 2016 kicks off on a strong footing.

Obeying the old adage that investors turn to gold as a safe haven for their cash in troubled times, the price of the precious metal rose from £726.47 per troy ounce at 09:00 on Monday (4 January) to £746.86 at 18:30 on Wednesday (6 January). At 09:00 this morning (7 January), the gold price had climbed further to £752.02.

The strong performance of the precious metal follows stock market falls across the globe, prompted by data showing a slowdown in the Chinese economy, plus unexpected political volatility. North Korea announced it had carried out a nuclear test, and earlier in the week, Saudi Arabia cut its diplomatic ties with Iran, leading to concerns about international stability.

Societe Generale analyst Robin Bhar told Reuters: “Some risk aversion prompting safe haven flows has helped gold to stabilise and now test resistance.

“Physical demand has been pretty strong at the lower levels. As we go higher, we could see some of that physical demand beginning to slow. Now we need investors to jump back in and look to hedge some of the uncertainties over global growth, over China, with positioning in gold.”

Analysts at MKS said the gold price was likely to “continue to take direction” in the short term from equities, changes in the value of the US dollar and Chinese economic announcements. They believe political factors will play a “lesser” role in determining the value of the precious metal.

Economic indicators

The falls in the gold price last year, which saw the metal lose 10.5 per cent of its value and end 2015 down for a third consecutive year, were mainly due to the apparent strengthening of the global economy.

However, as events have shown this week, there can be no certainty that will continue. Stock markets around the world were shaken on Monday after the main Chinese index fell by seven per cent and trading was halted early, following the publication of worse than expected manufacturing figures.

The sheer size of the Chinese economy means that any signs of weakness can have major repercussions on international markets. Peter Boockvar, the Lindsey Group’s chief market analyst, said that the Chinese economy “has been slowing for years” and events this week are “a wake-up call” to the markets.

Trends to watch in 2016

The strength of the US dollar during 2015 was another factor in lower gold prices last year. Gold prices are traditionally strong when the US currency is weak, and vice-versa. So the performance of the dollar is worth watching as part of your investment decisions.

Analysts will also be keeping tabs on the US Federal Reserve and whether – and by how much – it increases the cost of borrowing in 2016. At the end of last year, it increased interest rates by 0.25 per cent for the first time in almost a decade.

Plus, inflation will play a part in how the gold price behaves, with concerns about rising inflation likely to see the value of the precious metal increase.

 
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<![CDATA[Stock market plunge sends gold price soaring]]> https://www.thegoldbullion.co.uk/blog/chinese-stock-market-plunge-sends-gold-price-soaring/ https://www.thegoldbullion.co.uk/blog/chinese-stock-market-plunge-sends-gold-price-soaring/ Wed, 06 Jan 2016 00:00:00 +0000 Just a few days into the New Year and unexpected turmoil on the financial markets has already resulted in higher gold prices, as investors seek a safe haven in stormy waters.

A crash on the Chinese stock market on Monday (4 January), which resulted in trading being stopped early due to a seven per cent plunge, echoed around the globe. Indices across Asia, Europe and the US ended the first trading day of 2016 down.

The financial performance of China, the world’s biggest buyer of gold, has serious knock-on effects in a global economy. Analysts said the chaos seen at the start of the week was caused by further evidence of China’s slowing economy, with the publication of data showing the country’s manufacturing sector is continuing to contract.

This, combined with political volatility in the Middle East sent the gold spot price soaring. Both oil and gold prices, which traditionally mirror each other’s performance, increased after Saudi Arabia broke off diplomatic relations with Iran.

On Monday, the gold price climbed to £733.47 per troy ounce at 15:30, and reached £736.85 by 17.30 yesterday (Tuesday, 5 January). This morning, gold was trading at £740.31 per troy ounce at 09:00.

The boost is largely due to the fact that investors consider gold to be a less risky place to store their money in difficult economic times. The strengthening world economy seen over the last 12 months, which resulted in the US Federal Reserve increasing the cost of borrowing at the end of 2015 for the first time in almost a decade, contributed to recent falls in the gold price.

But according to Lindsey Group chief market analyst Peter Boockvar, the latest news from China shows the international financial picture may not be as rosy as previously thought.

He told CNBC: “China's stock market obviously had its craziness last year, but the underlying context is the Chinese economy has been slowing for years, but it's a wake-up call to the markets that the US economy is slowing down; the global economy is slowing down, and central bankers are losing their effectiveness in propping things up.”

So if you’re seeking a safe harbour for your investments, now could be the time to consider gold.

 
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<![CDATA[Analysts watch global economy for gold price hints]]> https://www.thegoldbullion.co.uk/blog/analysts-watch-global-economy-for-gold-price-hints/ https://www.thegoldbullion.co.uk/blog/analysts-watch-global-economy-for-gold-price-hints/ Mon, 04 Jan 2016 00:00:00 +0000 The gold price fell by 10.5 per cent in 2015, marking the precious metal’s third year of annual losses.

Gold stood at around £737 per troy ounce at the end of December 2014 and ended 2015 at £719.82. This morning (4 January), the gold price stood at £726.64 as traders returned to the market after the Christmas break.

With low prices prevailing, the last 12 months have been good for buyers seeking a long term investment, but analysts are now looking for hints of how the precious metal will behave in 2016.

The stronger economy in the US combined with a slowdown in China – the world’s biggest gold buyer – and the robust performance of the US dollar all played major roles in the falling price of gold in 2015.

The US dollar ended the year nine per cent stronger than in 2014 and has been enjoying a long period of good performance against other currencies. A strong dollar generally signifies a weaker value for gold, and vice-versa. Many analysts now expect the dollar to continue its ascendancy in 2016, and coupled with interest rate rises in the US, this could spell further falls in the gold price.

Karim Merchant, group CEO and managing director of Pure Gold Jewellers told the Gulf News:  “For 2016 at least, it looks like gold will be around current levels or below. However, we must consider that the world markets are really dynamic.”

Rolf Schneebeli, CEO of Gold Services AG, also pointed out that world events and concerns about rising inflation will play a role, and could lead to a higher gold price.

He said: “In the US, we already see the economy starting to perform nicely, including an increase in inflation. When the European economies do the same [perhaps] in one to two years, then we could see the inflation fear coming back to the market and the trend of the gold price might change.”

Sources:

http://gulfnews.com/business/gold-rate/gold-price-to-make-a-comeback-analyst-1.1646356

http://moneymorning.com/2015/12/31/rise-in-gold-prices-today-cant-prevent-third-straight-yearly-loss/

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<![CDATA[With gold dipping in 2015, what should investors be looking for?]]> https://www.thegoldbullion.co.uk/blog/with-gold-trending-downwards-in-2015-what-should-investors-be-looking-out-for/ https://www.thegoldbullion.co.uk/blog/with-gold-trending-downwards-in-2015-what-should-investors-be-looking-out-for/ Thu, 31 Dec 2015 00:00:00 +0000 The gold price has dipped again in sparse trade as the markets neared their close for 2015.

In what has been a quiet week for the precious metal, the gold spot price per troy ounce fell to £715.37 at 17:00 yesterday (Wednesday 30 December) from its weekly high of £721.07 just over 24 hours earlier. This morning (Thursday 31 December), the gold spot price was £716.53 at 09:00.

What has affected the gold price in 2015?

The gold price has dropped by around 10 per cent over the last 12 months, making 2015 the third consecutive year that it has fallen.

While this is a positive for longer-term investors buying in, it has meant that 2015 was not the best year to sell.

The falling spot price has been linked to the strength of the US dollar this year. When the US currency is strong, the gold price tends to be weaker, and vice-versa. In addition, the improving economy in the US, which led to the Federal Reserve increasing the cost of borrowing for the first time in almost a decade, has resulted in some investors shying away from the stability offered by the precious metal.  

This week, the gold price has been linked to the performance of currencies and the price of oil, because there has been little economic news for investors to analyse.

Afshin Nabavi, head of trading at MKS SA, told Reuters: “Physical demand in gold continues to be relatively aggressive in the Far East compared with October and November, and on that basis gold should be much higher, but there seems to be this pressure from the dollar, which continues to put a lid on the price.”

Looking ahead to 2016, Adrien Biondi of Commerzbank said many of the same issues will continue to impact on the price of the precious metal.

“Gold's drivers will remain the same going forward, including the Fed's policy and the rate differential with other central banks, the strength of the dollar and China’s economic growth,” he said.

The performance of oil is also traditionally linked to that of gold because gold is considered a good hedge against inflation led by high oil prices. This year has seen a slump in the oil price, which fell close to 11-year lows yesterday after Saudi Arabia revealed it would not be reducing production to stoke up demand.

Demand for gold bullion coins remains high

The weaker gold spot price in 2015 has led to increased demand for bullion coins and analysts expect this trend to continue into the New Year.

The better prices for investors resulted in strong sales of coins in the US, where the US Mint had sold all its 2015 dated one troy ounce American Eagle gold bullion coins before the end of November.

Although demand slowed in December, analysts say this was due to a lack of supply rather than a reduction in investors’ desire to buy coins.

Barclays said: “The slow sales pace in December was supply driven, in our view. We expect strong demand at the start of next month once new supply comes from the US Mint, due to lower prices.”

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<![CDATA[Gold price set to record a 10 per cent loss]]> https://www.thegoldbullion.co.uk/blog/gold-price-set-to-record-a-10-per-cent-loss-in-value-for-2015/ https://www.thegoldbullion.co.uk/blog/gold-price-set-to-record-a-10-per-cent-loss-in-value-for-2015/ Wed, 30 Dec 2015 00:00:00 +0000 The gold price is set for its third year of annual losses and is expected to end the year around 10 per cent down on 2014’s prices.

However, post-Christmas trade in the precious metal has been steady as gold prices responded well to better oil prices. The volume of trading, though, has been thin as many dealers remain on an extended Christmas break.

The gold spot price per troy ounce plunged to £709.85 at 08:30 on Tuesday (29 December) but had climbed back up to £722.35 by 17:00. The price per troy ounce was 721.28 at 09:15 today (Wednesday 30 December).

Analysts expect conditions to remain “fairly quiet into the year-end”, Reuters reported.

Prior to the festive break, the gold price had increased by almost one per cent in Christmas week but is set to show its sixth quarterly fall in value. This is the longest quarterly run of losses since the 1970s, which, while it could be problematic for short-term investors, signifies a good time for investors seeking to snap up higher volumes of the precious metal and play the long game.

Much of the decrease in the value of gold this year can be attributed to the strength of the US dollar and the expectations that the US Federal Reserve would increase interest rates on the back of America’s strengthening economy. Although gold prices did dip when the Fed increased the cost of borrowing earlier this month, they recovered quickly after it intimated that future rate rises in 2016 would probably be slow and steady.

ING analyst Hamza Khan told NDTV Profit: “If you look at the last year's decline, that was due almost exclusively to a much stronger dollar, and that was due to the Fed being the only central body to raise rates with any conviction.

“The question of whether gold is going to recover in 2016 or not will depend not on whether the Fed hikes rates or not, because that seems to be a given, but whether it is the only one to hike rates.

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<![CDATA[Gold bullion sales forecast to be strong at the start of 2016]]> https://www.thegoldbullion.co.uk/blog/gold-bullion-sales-forecast-to-be-strong-at-the-start-of-2016/ https://www.thegoldbullion.co.uk/blog/gold-bullion-sales-forecast-to-be-strong-at-the-start-of-2016/ Mon, 28 Dec 2015 00:00:00 +0000 Demand for gold bullion coins is predicted to be robust in 2016 thanks to the continued good value investors are obtaining from the lower price of the precious metal.

The US has been leading demand this year with strong coin sales seen over the course of 2015, with some slackening off during December, according to the US Mint. However, analysts believe this is due to lower availability of coins, not a lack of desire to buy.

In November, the US Mint revealed it had sold all of its 2015 one troy ounce gold American Eagle bullion coins and would not be making any more.

Barclays said: “The slow sales pace in December was supply driven, in our view. We expect strong demand at the start of next month once new supply comes from the US Mint, due to lower prices.”

Both gold and silver coin sales have been strong this year, especially in the second half of 2015. In November, sales of American Eagle bullion coins were 185 per cent higher than the previous month, and figures from just before Christmas show that sales of this particular coin are more than 50 per cent higher than last year.

Investors are benefiting from the lower gold fix price, which is around eight per cent down on last year, according to the London Bullion Market Association’s figures.

There has also been record demand for US Mint silver coins, which broke sales records for the third year in a row.

Trade has been slow, as is expected, over the Christmas period when many traders are taking a festive break. But the signs are that investors will continue to snap up bullion coins in the New Year to take advantage of the current low prices for precious metals. While now may not be the best time to sell at a profit, buying bullion coins when gold prices are weak is a sound strategy for longer-term private investors.

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<![CDATA[Gold price fails to sustain its pre-holiday rally]]> https://www.thegoldbullion.co.uk/blog/gold-price-fails-to-sustain-its-mini-pre-holiday-rally/ https://www.thegoldbullion.co.uk/blog/gold-price-fails-to-sustain-its-mini-pre-holiday-rally/ Thu, 24 Dec 2015 00:00:00 +0000 Gold failed to retain the gains it made in its pre-Christmas mini rally, as the spot price of the precious metal dipped in thin trading ahead of the festive break.

The increase in the value of the US dollar and a third day of rallies on international stock markets saw investors shy away from sinking money into gold. Good economic news from the US, where new data showed a rise in personal income last month for the eighth consecutive month also helped to put pressure on the gold price.

Eli Tesfaye, senior market strategist for brokerage RJO Futures in Chicago, told Reuters: “The narrative here is that the positive economic reports are going to put pressure on gold.”

At 09:00 today (Thursday, 24 December), the gold price per troy ounce was £721.99, almost on a par with 24 hours earlier but down from its value of £725.74 at 17:00 on Tuesday (22 December).

Predictions for the New Year

The gold price is set to record its third successive year of falls in 2015 and is currently around 10 per cent lower than it was at the close of 2014. This has been a good year for private investors to get the most gold for their money, and if the price does continue to fall, there will be further bargains to be had.

Analysts expect the US Federal Reserve to continue its policy of increasing interest rates, but this is forecast to be gradual. A better performing economy, signified by a higher cost of borrowing and a strong dollar, traditionally sees gold prices fall. Gold prices generally increase during tougher economic periods as the metal is considered a safe haven for investors.

China, globally the biggest gold-buying country, may also ease back on its demand for the precious metal, according to Reuters, which said a number of analysts are “predicting that demand could fall for a third year in 2016”.

However, nothing is ever set in stone when it comes to the gold price. The spot price was widely expected to plummet after the Fed increased the cost of borrowing last week, and although there was a dip immediately after the announcement, the value of gold climbed at the end of last week, and into the start of this week.

It looks like being a case of keeping a close eye on the market and of course volatile world events, which can also send investors heading for the safety of gold.

Dubai introduces in-store gold price monitors

Dubai is aiming to boost its reputation as the ‘city of gold’ and give buyers greater confidence in the transparency of their transactions by introducing a centrally-controlled system showing the gold price in jewellery stores across the city.

Around 500 stores will be linked up to the Electronic Retail Jewellery Price Display Unit at the start of next year, with the system rolled out to 500 more in the coming months.

The programme is the result of a partnership between the Department of Economic Development (DED) and the Dubai Gold & Jewellery Group. It is part of efforts to show consumers and visitors to the city they will not be overcharged for their gold and jewellery purchases.

 
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<![CDATA[Gold price strong in the run-up to Christmas break]]> https://www.thegoldbullion.co.uk/blog/gold-price-strong-in-the-run-up-to-christmas-break/ https://www.thegoldbullion.co.uk/blog/gold-price-strong-in-the-run-up-to-christmas-break/ Wed, 23 Dec 2015 00:00:00 +0000 The gold price has enjoyed a pre-Christmas rally, despite news from the US that the volume of trade has been slower in the run-up to the holiday.

The gold price per troy ounce jumped from £714.43 at 21:00 on Friday (18 December) to £725.74 at 17:00 on Tuesday (22 December). At 09:00 today (23 December), gold had lost a little ground and the price was £721.93 per troy ounce.

The rise comes despite the perceived wisdom that gold prices dip when interest rates rise, as they did last week in the US. Although there was a fall immediately after the US Federal Reserve increased the cost of borrowing by a quarter of a per cent, gold prices have held strong since.

Market analysts are now split on the direction the gold spot price will take in the New Year. Some are predicting the precious metal will fall in value, which of course will signify a good time for individual investors to build up their gold bullion collection. However, others forecast an increase in the gold price in the months ahead.

Gold is likely to hold its own if the value of the US dollar continues to weaken; the dollar has recently been enjoying high prices but some weakening in the currency has buoyed up the gold price.

Analysts point out, however, that the current gold price increase is taking place in a market where many traders have already signed off for their Christmas breaks. The next stage in the gold price’s latest pattern is now unlikely to become apparent until 2016.

Bob Haberkorn, a broker at RJO Futures, told the Wall Street Journal: “The downside for gold appears to be limited, at least until the end of the year.”

If you’re still seeking a late Christmas gift, gold is of course a traditional choice – alongside Frankincense and Myrrh, which are a tad less expensive with prices ranging from £10 to £15 per kg!

 
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<![CDATA[Dubai introduce transparent gold pricing to stores]]> https://www.thegoldbullion.co.uk/blog/dubai-introduces-transparent-gold-pricing-to-stores/ https://www.thegoldbullion.co.uk/blog/dubai-introduces-transparent-gold-pricing-to-stores/ Mon, 21 Dec 2015 00:00:00 +0000 Dubai, one of the world’s major jewellery-buying centres, is introducing a new system which will show the up-to-the-minute gold price in hundreds of shops across the United Arab Emirates city.

The system, a world-first for retail stores, is being pioneered thanks to a partnership between Dubai’s Gold & Jewellery Group and the Department of Economic Development (DED). The electronic gold price displays will all be linked to a central system to ensure buyers are able to purchase gold at the correct price and protect them from potential over-charging.

The programme will initially be rolled out to almost 500 jewellery shops early in the New Year. Around 1,000 stores will eventually become part of the scheme.

Mohammed Rashed Ali Lootah, who heads the DED’s Commercial Compliance and Consumer Protection section, said: “The Electronic Retail Jewellery Price Display Unit is the latest in our joint initiatives with the private sector to enhance consumer awareness and enhance ease of shopping. It also reflects the importance [of the] gold trade in overall economic activity in Dubai.

“Considering the number of retail gold outlets in Dubai and the volatility of gold as a commodity, uniform pricing and transparency are critical to keeping Dubai as the most competitive and attractive gold market.”

Dubai, which is keen to establish itself as the ‘city of gold’, attracts wealthy tourists from around the world and is working hard to foster a reputation for transparency and integrity.

The new system is not the first time the city’s Gold & Jewellery Group has taken steps to assure customers they are paying the correct market rate for the precious metal. Since it was set up almost 20 years ago, the organisation has encouraged members to show the current international gold price in shops alongside their suggested retail prices, which are set at three to five per cent higher than the gold troy ounce price.

 
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<![CDATA[US raises interest rates but gold price holds ground ]]> https://www.thegoldbullion.co.uk/blog/us-raises-interest-rates-but-gold-price-holds-its-ground/ https://www.thegoldbullion.co.uk/blog/us-raises-interest-rates-but-gold-price-holds-its-ground/ Thu, 17 Dec 2015 00:00:00 +0000 The big news this week is that the US Federal Reserve has acted, as was widely predicted, to increase US interest rates by 0.25 per cent. But commentary accompanying the rise suggests that the increase in the cost of borrowing may not impact too harshly on the gold price.

Gold prices traditionally fall when the economy is strong and interest rates are on the up. However, the Fed said that it is now looking at a more gradual increase in rates than it was considering just a few months ago.

The Wall Street Journal (WSJ) said this policy may lead to higher inflation which could “reanimate demand for gold as a store of value”. Slow increases in the cost of borrowing are also expected to push the gold price upwards.

Peter Hug, of Kitco Metals, told the WSJ: “I’d be willing to bet you will not see a rate increase by March, or maybe even until the summer.

“Right now, there is just not enough juice to create a significant barrier to gold.”

The market this week

Ahead of the Fed’s announcement on Wednesday (16 December), the gold spot price jumped by more than one per cent, thanks to speculation that any future rate rises will be gradual. That expectation was confirmed by the Fed’s commentary.

There has been a nine per cent dip in the price of the precious metal during 2015, making it a good year to buy. The falls have been largely due to the expectation, now met, that the Fed would increase rates from the record low they had stood at since 2006.

At 22:30 on Monday (14 December), the gold price stood at its lowest level this week, at £698.84 per troy ounce but had bounced back to £717.38 at 18:00 on Wednesday, just ahead of the Fed’s announcement. The spot price was  £714.74 per troy ounce at 09:00 this morning (Thursday 17 December).

Governments and investors turn to gold

The low gold prices seen this year have encouraged both private investors and international governments to increase their gold holdings.

Worldwide, there was a 27 per cent rise in investments in gold bullion coins and bars during the third quarter of this year among private buyers.

Among the government investors, China has led the way. The world’s biggest gold buyer has been adding liberally to its stocks of the precious metal ahead of its currency, the yuan, being granted reserve currency status by the International Monetary Fund.

Around 2,800 tonnes of gold are produced globally every year, and in just five months, China invested in around a quarter of the world’s annual production. It has been buying between 14 and 20 tonnes of the precious metal each month.

Russia has also been boosting its gold bullion holdings over the course of 2015. In September it snapped by 34.5 tonnes to add to the near 30 tonnes of gold it bought in August, figures from the World Gold Council showed.

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<![CDATA[Fed's interest rate decision due: what will it mean for gold?]]> https://www.thegoldbullion.co.uk/blog/feds-interest-rate-decision-due-what-will-it-mean-for-gold/ https://www.thegoldbullion.co.uk/blog/feds-interest-rate-decision-due-what-will-it-mean-for-gold/ Wed, 16 Dec 2015 00:00:00 +0000 The gold spot price traditionally falls when rates rise, as higher rates are indicators of a growing economy and investors tend to turn away from the security of gold and put their money into less stable assets.

The widespread expectation of a rate rise in the US has led to a depressed gold price in recent weeks. It fell from £713.32 per troy ounce at 15:00 on Wednesday 9 December, to £700.93 at 14:00 yesterday (Tuesday 15 December). The price per troy ounce had recovered slightly and stood at £708.29 at 11:45 this morning.

However, despite the traditional downturn in the gold price when rates rise, not all analysts are convinced the market will follow the usual pattern. Two weeks ago, when the US government published better than expected employment statistics, gold surprised the market by rising in price.

Many analysts also believe that because traders almost unanimously expect the Fed to increase rates, the current gold price has already taken that into account. In addition, the effects of any rate rise on the value of the US dollar will also have a part to play in the value of gold. Traditionally, when the dollar is weak, gold prices are strong and vice-versa; the US currency has recently been enjoying eight-year highs.

Julian Phillips of GoldForecaster, told MarketWatch: “Dealers and speculators are trying to second-guess what the market's reaction to the expected Fed rate hike on Wednesday will be and are reading the price, in line with the technical picture, as downwards.

“But such plays are high-risk ones, for if the Fed does not affect the dollar exchange rate they will have to unwind their positions in the face of a market going the other way.”

The Fed’s announcement on interest rates is expected at 18:00 GMT.

 

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<![CDATA[China takes advantage of low prices]]> https://www.thegoldbullion.co.uk/blog/china-takes-advantage-of-low-prices-to-beef-up-bullion-holdings/ https://www.thegoldbullion.co.uk/blog/china-takes-advantage-of-low-prices-to-beef-up-bullion-holdings/ Mon, 14 Dec 2015 00:00:00 +0000 China, the world’s biggest gold buyer, bought almost a quarter of the global annual production of the precious metal in just five months this year.

The country purchased 654 tonnes of gold bullion from June to September, and the latest figures show the country is accelerating its gold-buying to take advantage of the current low prices.

The People’s Bank of China’s data for November showed that the country added an estimated 20.8 tonnes of fine gold bullion to its stocks last month. The volume was calculated by Reuters, based on the dollar value of gold the country had bought. China has been snapping up between 14 and 19 tonnes of gold a month for much of this year, a sizable chunk of the global annual gold production, which stands at around 2,800 tonnes a year.

China revived the publication of its gold holding statistics in June and has published information every month since. The country had previously released monthly data, but stopped doing so in April 2009 during the worldwide economic downturn.

Market analysts expect the country to continue with its large-scale gold investments as the Chinese yuan is about to be granted reserve currency status by the IMF (International Monetary Fund) and China will be keen to back-up its currency with strong gold holdings.

However, it is not the only government boosting bullion holdings at the moment. Figures from the World Gold Council (WGC) show that in the second half of this year, Russia has also been adding substantially to its gold stocks. It purchased almost 30 tonnes in August and 34.5 tonnes in September.

And governments aren’t alone in using the low spot price to beef up their investments. The figures for investment in gold bullion bars and coins showed a 27 per cent increase worldwide during the July to September quarter of 2015. Canny investors appear to be building up the value of their individual holdings while prices are low.  

 
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<![CDATA[What's happening in the world of gold trading? ]]> https://www.thegoldbullion.co.uk/blog/what-s-been-happening-in-the-world-of-gold-trading/ https://www.thegoldbullion.co.uk/blog/what-s-been-happening-in-the-world-of-gold-trading/ Thu, 10 Dec 2015 00:00:00 +0000 Gold ended last week at a three-week high, and the rally in prices seen after the US dollar lost ground stayed steady early in the week but has failed to hold its momentum.

The gold spot price had responded to falls in the value of the US currency, which had been trading at eight-week highs, following its usual pattern of rising in correlation with a weakening of the dollar.

The Daily 1% Swing

By 17:00 on Friday (4th December), the spot price had reached £716.65 per troy ounce and maintained these levels for much of Monday. As the week went on we saw fluctuations of around one per cent, almost on a daily basis, as traders came to terms with the higher price point but failed to find a clear direction ahead of the potential increase in the US interest rate.

While positivity held early in the week, the gold price took a sharp dive to £707.06 at 17:30 on Wednesday. In early trade today (Thursday 10th December), the spot price stood at a more stable £707.82 per troy ounce, with attention still very much focused on the big market announcement: the Fed’s decision on US interest rates.

Traders await Fed’s next move

This week’s gold trading has again been overshadowed by the wait for economic news from the US. Gold traders are awaiting the US Federal Reserve’s monthly interest rate-setting meeting on December 15 and 16.

It is widely forecast that the Fed will increase rates by a quarter of a per cent on the back of positive jobs data in the US. If it does, the gold spot price is likely to fall further because gold is considered a safe haven for investors during volatile periods; a more settled economy exhibiting growth tends to see more money moved into less stable investments.

Mark O’Byrne, from Dublin-based investment firm GoldCore, told Marketwatch: “Gold appears vulnerable to further weakness as traders remain fixated on the likely Fed interest rate rise next week.”

His views were echoed by other market analysts, with Bob Haberkorn, a senior commodities broker at RJ O’Brien in Chicago, telling the Wall Street Journal: “The market’s just not going to have much direction until the Fed.”

Simona Gambarini, commodities economist at Capital Economics in London, told the same publication she believed investors were already taking the expected rate rise into account.

“The real surprise would be if the Fed doesn’t hike rates,” she added.

However, Mark O’Byrne pointed out that China, the world’s biggest gold-buying nation, was likely to prevent the price of the precious metal from slipping too steeply. Demand for gold, and therefore the price, traditionally increases in the run-up to the Chinese New Year festivities.

An Indian exchange

Meanwhile, India which ranks second to China in the global gold-buying stakes, is firming up plans to open its first national physical gold trading exchange.

The idea was initially floated by India’s economic affairs secretary, Shaktikanta Das, and this week was taken up by the India Bullion and Jewellers Association (IBJA). It wants to establish the exchange, similar to one already operating in China, to give the cash-heavy market a transparent and regulated platform. In China, all gold bought and sold must be done so via the gold exchange.

The Indian government is keen to free up the amount of gold held in the country to reduce reliance on imports. As a result, it has monetised the precious metal and opened sovereign bond schemes for investors.

The IBJA is keen to launch the physical exchange within the next six months and is currently seeking partners to run the platform.

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<![CDATA[Indian traders and jewellers plan country physical gold exchange]]> https://www.thegoldbullion.co.uk/blog/indian-traders-and-jewellers-plan-first-physical-gold-exchange/ https://www.thegoldbullion.co.uk/blog/indian-traders-and-jewellers-plan-first-physical-gold-exchange/ Wed, 09 Dec 2015 00:00:00 +0000 India aims to open its first gold exchange in the New Year, which will help the government monitor gold trading in what is the precious metal’s second biggest market.

Gold dealers and jewellers in the India Bullion and Jewellers Association (IBJA) plan to launch the physical gold trading exchange within the next six months; once its structure and ownership details have been ironed out. China, the world’s biggest global gold buyer, already has a similar exchange in operation.

The new exchange would allow those involved in the Indian gold markets to trade using a regulated platform in a transparent manner.

Mumbai Jewellers Association vice-president, Kumar Jain, told Reuters: “There is a need for an exchange that will cater to small jewellers' demand.

“Sometimes we need to pay hefty premiums. That won't happen as demand-supply will become transparent on [an] exchange platform.”

In China, all gold, whether it is imported into the country or produced within China, must be traded through its official gold exchange. India is hoping a similar set-up for physical gold bullion and silver trading will lead to standardised gold pricing across the country and allow the government to keep tabs on gold trading, which often involves large cash sums.

The Indian government has already monetised gold and introduced sovereign bond schemes as part of efforts to stop people hoarding the precious metal. It hopes the move will result in greater availability of domestic gold in the market and reduce the amount that the country imports.

India already has an exchange dedicated to gold futures contracts and the new idea of a physical exchange was initially mentioned earlier this month by economic affairs secretary, Shaktikanta Das,  suggesting there will be official backing for IBJA’s proposal.

To push ahead with the plan, the IBJA is seeking partners to launch the scheme. It is likely banks will be among the investors interested in a physical gold exchange, but this will need government approval. Currently, banks are not allowed to trade on commodity exchanges in India that offer futures contracts.

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<![CDATA[Analysts eye market after gold rallies]]> https://www.thegoldbullion.co.uk/blog/analysts-eye-market-after-gold-rallies-despite-strong-us-economic-data/ https://www.thegoldbullion.co.uk/blog/analysts-eye-market-after-gold-rallies-despite-strong-us-economic-data/ Mon, 07 Dec 2015 00:00:00 +0000 Investors will be watching the gold price closely today after a surprise rally at the end of last week.

The price rose from an almost six-year low on Thursday (December 3), with the spot price increasing by 1.1 per cent per troy ounce. The precious metal was up in line with the value of the euro, which rose by one per cent after the European Central Bank confirmed a minimum cut in its deposit rate.

On Friday (December 4), the gold price rallied further to reach a three-week high, adding over 2.5 per cent to its value to stand at £718.41 per troy ounce by close of play. This was the first weekly gain recorded by the precious metal for seven weeks.

The rally surprised analysts because it came after official figures from the US Labor Department showed better-than-expected job creation figures.

However, there was a slight decline in the value of the US dollar to end the week. The increase in the value of the euro prompted a 1.73 per cent fall in the value of the US currency, which had been enjoying eight-month highs.

The value of gold often rises when the US dollar falls, because it means that bullion becomes cheaper to buy with other currencies. Bill O’Neill of New Jersey-based commodities investors Logic Advisors, told Reuters  : "I would attribute most of the [gold] rally to the weakness in the US dollar.”

Gold held most of its gains this morning (Monday, 7th December), recording £718.17 per troy ounce at midday, leading analysts to continue with their cautious optimism.

Gold investors are now waiting to see whether the US Federal Reserve will act to increase interest rates for the first time in 10 years at its December meeting on the 15th and 16. The strong US jobs data adds to expectations of a rise in rates and investors have been leaving gold bullion funds in preparation, the Economic Times reported. It pointed to a fall in assets held by the main gold exchange traded fund, the SPDR Gold Trust, which have dipped to their lowest since 2008.

This of course would signify an attractive time to buy gold for individuals seeking more bullion for their money.

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<![CDATA[What will happen to gold as geopolitical risks hit 25-year high?]]> https://www.thegoldbullion.co.uk/blog/what-will-happen-to-gold-as-geopolitical-risks-hit-25-year-high/ https://www.thegoldbullion.co.uk/blog/what-will-happen-to-gold-as-geopolitical-risks-hit-25-year-high/ Fri, 04 Dec 2015 00:00:00 +0000 With gold viewed as a traditional insurance mechanism to protect against turbulent times, a great deal of attention is paid to political upheaval. Generally speaking, more unrest results in higher gold prices as people flock back to the precious metal as a safe haven.

But with gold prices running close to a six-year low, there has been a lot of debate in the markets as to just when this price increase will materialise given the mounting levels of unrest we're seeing on a global scale.

A recent report from Citi Research has increased discussion on this topic after stating that geopolitical risks are at “a 25-year high”.

The report suggests that we are close to a “tipping point” due to the spread of political turbulence. Indeed, there are four serious factors that together are at serious risk of upsetting the balance of our current financial systems. These are listed by Citi as: the conflict between Russia and Ukraine; the situation in Syria concerning ISIS; what Citi describes as “weak and failing states”, and finally the escalating tensions in the South China Sea.

With Britain's decision this week (Wednesday, 2nd December) to join France and its other allies in airstrikes on Syria, the stakes have been raised yet further. And Citi's report makes it clear that there is a strong chance that levels of uncertainty will continue to grow, noting that while political risks have largely been “masked by cheap and abundant liquidity from central banks and shale […], declining institutional capacity and trust in elites is helping local grievances gather momentum, suggesting that political fragmentation will continue and regional political risks could yet become systemic”.

The debate now is focused on just what will happen should this “systemic” risk materialise. The answer is far from clear but as debate grows around the security of debt-based investments, interest in solid investment products like gold looks set to rise.

 

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<![CDATA[Global Uncertainty Pushes Gold Back into Investment Spotlight]]> https://www.thegoldbullion.co.uk/blog/global-uncertainty-pushes-gold-back-into-investment-spotlight/ https://www.thegoldbullion.co.uk/blog/global-uncertainty-pushes-gold-back-into-investment-spotlight/ Thu, 03 Dec 2015 00:00:00 +0000 While last week saw gold price gains on the back of the Turkish take down of a Russian jet and the resulting refocus on geopolitical uncertainty, this week has been a mixed performance from gold prices, with climbs seen early in the week, before things took a downturn from Wednesday (3rd December).

Gold started the week trading at £703.717 per troy ounce at 09:00 Monday morning. By 19:00 that evening, the price had shown some decent gains and stood at £708.907. This held into Tuesday, despite a dip towards the end of the day, but by Wednesday afternoon a downward trend had established itself and the gold price had fallen to £705.810 by 14:00, before dropping further on Thursday to £703.272 at 09:00 and going on to hit a near six-year low.

All Eyes on America

While action in Syria and closer to home continues to play its part, gold has been more affected by activity in the US this week with prices remaining dampened by the growing likelihood of an increase in the US interest rates later this month.

Read more about the impact of US interest rate discussions on gold prices here

It would seem December 15th and the Federal Reserve meeting can't come soon enough for many as gold prices continue to fall. And yet demand for physical gold is remarkably strong at the moment.

We saw figures from the World Gold Council's Q3 Gold Demands Trends Report confirm that gold demand in the three-month period was up by eight per cent year-on-year. Jumps were seen around the world; in fact the US Mint reported that it saw a 185 per cent jump in the number of gold coins sold in November in comparison to October.

Peter Schiff, CEO of Euro Pacific Capital, spoke to CNBC about the growing levels of demand for physical gold:

“The demand is there. It's growing. It's even greater outside the US than domestically.The reality is that there's never been a better time where people should be buying gold than now. Currencies are being intentionally and deliberately debased around the globe, interest rates are at absurdly low levels and likely to stay there for the indefinite future."

Physical Focus

Mr Schiff's comments reaffirm the interest in physical gold as global uncertainty and market rumours abound. If further confirmation was needed we need only look back at the World Gold Council data to see that private individuals are buying record amounts of gold, attracted, as ever, to the precious metal’s reputation as a secure long-term investment.

The council's data regarding demand for gold bars and coins revealed a 33 per cent rise during the three-month period, with UK demand specifically jumping by 67 per cent.

With this week’s vote confirming British airstrikes Syria, turmoil and uncertainty is set to grows in our increasingly global economy. In light of this, investors are focusing back on the first rule of investing: preserve your capital before all else.

And in this environment, where better for investors to turn than to physical gold?

An asset that has provided long-term insurance through thousands of years of conflict and upheaval.

http://www.cnbc.com/2015/12/02/gold-coin-bugs-no-were-not-crazy-for-buying.html

http://uk.reuters.com/article/2015/12/03/global-precious-idUKL3N13S35W20151203

http://www.telegraph.co.uk/finance/markets/questor/11992563/Gold-remains-the-best-insurance-for-a-crisis.html

 
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<![CDATA[Gold price stays low in anticipation of US interest rate rise]]> https://www.thegoldbullion.co.uk/blog/gold-price-stays-low-in-anticipation-of-us-interest-rate-rise/ https://www.thegoldbullion.co.uk/blog/gold-price-stays-low-in-anticipation-of-us-interest-rate-rise/ Mon, 30 Nov 2015 00:00:00 +0000 Gold prices have remained low today (Monday, 30 November), with a price of £706.46 per troy ounce recorded in the afternoon.

The drop in price is being attributed to an increased level of speculation regarding whether or not the US Federal Reserve will increase interest rates before the end of 2015. Indeed, there is a growing level of expectation that the Fed will opt to raise the rate at its December meeting.

A meeting of the European Central Bank is also due this week (Thursday, 3 December), but reports suggest that any impact it would have had on gold prices is likely to be overshadowed by activity in the US.

The attention of investors and analysts is also being held by the dollar, which is currently running strong. Along with the firm dollar, US non-farm payroll data for November, due for release this Friday (4 December), is under close scrutiny.

The data offers information regarding the number of jobs added or lost by the economy over the past month (not including the farming industries). As a strong indicator of GDP, it is a statistic often monitored by gold price analysts and others looking for signs of which way the Fed will vote on the interest rate, as well as an indicator of the general direction of the financial markets.

Germany's Commerzbank AG spoke to the Wall Street Journal about the matter: “The upcoming rate hike that the US Federal Reserve is expected to implement is presumably keeping the gold price in check.”

Traditionally seen as a financial safe haven during troubled times, analysts have suggested that the current gold price is likely to remain low for some months. Demand, on the other hand, looks to be on the increase, according to the latest report from the World Gold Council.

Published early November, the Q3 Gold Demand Trends Report from the council revealed that gold demand was up by eight per cent year-on-year, reaching a two-year high of 1,120.9 tonnes during the third quarter.

 
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<![CDATA[Brand Spotlight: Emirates Gold]]> https://www.thegoldbullion.co.uk/blog/brand-spotlight-emirates-gold/ https://www.thegoldbullion.co.uk/blog/brand-spotlight-emirates-gold/ Tue, 06 Oct 2015 23:00:00 +0000 Dubai has played a dominant role in the international physical gold market for many years now, and Emirates Gold, operating for more than 20 years from its Dubai headquarters, is amongst the most influential and respected gold refineries in the Arabic region.

Founded by Swiss citizen Mohamad Shakarchi in 1992, the firm processes 200 tonnes of gold and silver a year, creating bars, coins and medals, as well as a range of custom made products such as personalised trophies and plaques.

Emirates Gold has played a major role in the rise of Dubai as a gold producer, and has also contributed toward its status as the City of Gold through the production of the Visions of Dubai gold coin.


Emirates launched the Visions of Dubai gold coin in World Gold Council
in 2007 to celebrate Dubai's status as the 'City of Gold'


Emirates Authorised Distributor

The Gold Bullion Company is the sole UK distributor of a range of fine gold and silver investment products from Emirates Gold.

We stock a range of bars from 1g to 25g, complete with certificate of authenticity. 

Buy your Emirates gold and silver products from us and receive free UK delivery, fully insured in a sealed, fully secure, nondescript package.


Top 3 Best Selling Emirates Gold Bars

1. Emirates 1g Gold Bar

These 1g 24 carat gold bars offer the best price per gram for a 1 gram gold bar, making for a novel gift for a special occasion, or a great gateway investment.

 

 

2. Emirates Gold 2.5g Boxed Gold Bar

The larger 2.5g Emirates gold bar weighs in at a significantly lower price per gram, and prove popular as a slightly more substantial gifts.

 

 

3. Emirates 10g Gold Bar

The 10g 24 carat gold bullion bar is our best priced Emirates gold bar, and comes complete with a certificate of authenticity.

 

 

 

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<![CDATA[The Gold Billionaire Who Doesn't Own a Smartphone]]> https://www.thegoldbullion.co.uk/blog/the-gold-billionaire-who-doesnt-own-a-smartphone/ https://www.thegoldbullion.co.uk/blog/the-gold-billionaire-who-doesnt-own-a-smartphone/ Wed, 26 Aug 2015 23:00:00 +0000 Rajesh Mehta, 48, is the founder and current Chairman of Rajesh Exports, India's largest manufacturer and exporter of gold jewellery. Mehta has been listed amongst the 100 richest men in India since 2011, with a net worth of $1.1bn in 2014. 

But far from the supposed glitz and glamour of his personal fortune, and that of his native industry, Mehta drives around in a Toyota Innova and is famed for using a low-end Nokia feature phone on a daily basis. Rajesh Exports’ Bangalore headquarters are equally as low profile, with black font painted on a cheap, white tin board – not necessarily what you would expect from India’s leading exporter of gold jewellery. 

Mehta’s stance on wealth and success, though, is clear: “We don’t believe in showing off. We believe in our business, we believe in stretching our assets, and we believe in growth.”

Bengaluru Beginnings

Bengaluru-born Mehta’s thriftiness is likely a reflection of his humble beginnings. Stepping into the world of business as a teenager in the early 1980s, Mehta borrowed $118 from his older brother which, along with a modest bank loan, funded his early foray into the buying and selling of silver and gold jewellery.

Buying gold and silver jewellery from local smiths, Mehta sold his wares from door to door in his home town for a tidy profit, later expanding to Gujarat in the north and Chennai in the south east. This cycle continued, with each trip increasing his wealth, until Mehta made the decision to set up shop in his hometown and sell at scale.

In the 1980s, India’s gold market was heavily constrained by the Gold Control Act, a web of regulations that limited the amount of gold a dealer could hold. But Mehta was quick to notice that these regulations were considerably more relaxed in case of export, and spotted an opportunity.

Using the money he’d made so far, he set up a small plant in Bangalore and travelled to the UK where he stayed with relatives while pitching his wares to London retailers. Many were reluctant, but Mehta managed to land some orders, in what turned out to be the start of a billion dollar gold empire.

Recession and Acquisition

Behind the frugality, then, is the story of a focused and accomplished entrepreneur. Mehta’s journey from trader to the owner of the world's largest integrated gold player took around three decades. Highlights include successfully traversing the recession, increasing revenues by 213% from the years 2007 to 2012, and recently culminated in the signing of a deal with Newmont Mining for the acquisition of Swiss gold refining giant Valcambi in July. 

Representing what is a relatively rare acquisition by an Indian company, this move has positioned Rajesh Exports as one of the largest integrated players in the global gold market, with an IKEA-like control of supply, manufacture and retail of precious metal products. 

Valcambi has the capacity to refine 1,600 tonnes of gold in a year – double India’s annual demand, and around 40 per cent of the global gold requirement. When coupled with Rajesh Export’s existing portfolio, including a number of mines, retail outlets, and its existing title of being the world’s biggest private sector buyer of gold, the acquisition makes for a powerful new player in the global gold market.

 

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<![CDATA[Brand Spotlight: Umicore]]> https://www.thegoldbullion.co.uk/blog/brand-spotlight-umicore/ https://www.thegoldbullion.co.uk/blog/brand-spotlight-umicore/ Sun, 26 Jul 2015 23:00:00 +0000 Umicore Hanau

The story of Umicore goes back more than 100 years, with its long history in the mining of precious metals dating back to the early 1900s. Today’s Umicore group, however, has moved away from its mining roots, and focuses instead on the refining and recycling of precious metals, and the manufacture of specialised products. 

Umicore 100g Gold Bullion BarUmicore now employees more than 14,000 people in 38 countries, with an annual turnover of around £9bn. And while it generates the majority of its revenues from clean technologies and recycling (for which it has recently topped numerous lists as being one of the most sustainable companies in the world), it’s also notable for the quality of the gold and silver bars it produces.

Umicore gold bars are now one of our most commonly requested gold bullion bars and have quickly become one of the most recognised bullion bar brands in the UK and Europe.


Umicore Authorised Distributor

Umicore LogoThe Gold Bullion Company is an authorised distributor for Umicore precious metal products.

We stock a full range of gold and silver bars, from 1g to 1kg, complete with a full certificate of authenticity. 

Buy your Umicore products from us and receive free UK delivery, fully insured in a sealed, fully secure, nondescript package. 


Top 3 Best Selling Umicore Products

Umicore 100g Silver Bullion Bar1. Umicore 100g Silver Bar

Striking a strong balance between physical substance and market value, the 100g silver bar from Umicore is our current best seller – making for a generous gift or solid first time investment in precious metals.

 

Umicore 1g Gold Bullion Bar2. Umicore 1g Gold Bar

Small but perfectly formed, Umicore’s 99.99% pure 1g gold bar makes for a good starter investment to test the market, or a standout gift for weddings or special occasions.

 

Umicore 1oz Gold Bullion Bar3. Umicore 1oz Gold Bar

The ever-popular 1oz format (31.1g) is the largest of the bars in the top 3. The VAT-free nature of gold and a high £/g value make this gold bar format a popular choice with investors.

 

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<![CDATA[Inside a Gold Bullion Vault]]> https://www.thegoldbullion.co.uk/blog/inside-a-gold-bullion-vault/ https://www.thegoldbullion.co.uk/blog/inside-a-gold-bullion-vault/ Sun, 19 Jul 2015 23:00:00 +0000 The Bank of England is one of the largest custodians of gold in the world, ranked 18th as of February 2015. And all that gold is stored in the Bank of England vault, one of the most secret vaults in Britain.

Shrouded in secrecy for security reasons, its exact location isn’t known, but is likely to be deep underneath London’s Threadneedle Street within the proximity of the Bank of England itself. The Bank won’t say how deep down the vault is buried, or even how heavy the vault doors are, but we do know that it has more floor space than the third-tallest building in the City, Tower 42.

Good Delivery Bars

The majority of the physical gold is stored in the form of 24-carat London Good Delivery bars, with each being between 350 and 430 troy ounces (10.9-13.4kg) and stamped with its precise weight. The oldest bar of gold has been in the vault since 1916, but due to the chemical properties of gold it hasn’t tarnished, oxidised or misshapen, and looks the same now as it did 100 years ago.

  • The average gold bar weighs 400 fine ounces – or around 13kg – with each being worth more than £300,000 as of July 2015
  • The vault opens with a combination of voice recognition and several keys, each one approximately three feet in length 
  • No gold has ever been stolen from the vault!

 

Cambridge University’s Professor Martyn Poliakoff is one of the privileged few – being neither an employee nor a member of its security team - to wander up and down its aisles: “One’s first reaction is that it can’t possibly be real because normally you don’t see such things. It looks like chocolates in the duty free at the airport or something like that. But these really are solid gold bars and it is quite extraordinary.”

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<![CDATA[Is the End Nigh for Greece?]]> https://www.thegoldbullion.co.uk/blog/is-the-end-nigh-for-greece/ https://www.thegoldbullion.co.uk/blog/is-the-end-nigh-for-greece/ Sun, 14 Jun 2015 23:00:00 +0000 Following the collapse of last-ditch talks between Greece and its creditors on Sunday night, European stock markets have fallen sharply in early trading.

An EU Commission official said the talks broke up in under an hour as "there remains a significant gap between the plans of the Greek authorities and the demands of the international creditors".

Greece is now careering towards the end of June when €1.6bn becomes due to the International Monetary Fund.

As expected, the Greek stock market was particularly badly hit this morning with shares down 6% as panic took hold in Athens. 


Biggest losers on the Athens stock market, 15 June 2015. Photograph: Thomson Reuters

The sell-off in Greek government debt also intensified with money flowing into German bonds, pushing the 10-year yield down from 0.85% to 0.8%.

Volker Kauder, the parliamentary leader of Angela Merkel's Christian Democrat party has urged Greece to "get back to reality" this morning as the government holds an emergency meeting to discuss their next move.

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<![CDATA[Brand Spotlight: Metalor]]> https://www.thegoldbullion.co.uk/blog/brand-spotlight-metalor/ https://www.thegoldbullion.co.uk/blog/brand-spotlight-metalor/ Wed, 03 Jun 2015 23:00:00 +0000  


Founded over 160 years ago, Metalor has become one of the global leaders in the supply of gold bullion. The company originally specialised in the supply of gold to the jewellery and watch industries, later expanding the business to refining precious metals into bullion ingots.

Metalor now operates subsidiaries in 15 countries around the world from its headquarters in Switzerland, with Metalor gold bars enjoying a strong global reputation in all financial markets, and the embossed Metalor seal considered a guarantee of quality.

Its Swiss laboratories have been designated as an Official Referee for the London Bullion Market Association since December 2003, for both gold and silver.
 

Metalor Authorised Distributor

The Gold Bullion Company is an authorised Metalor gold bullion distributor, offering a range of premium Metalor branded gold bullion products. We stock a full range of bars from 1oz to 1kg, complete with a Metalor certificate of authenticity.

Buy your Metalor products from us and receive free UK delivery, fully insured in a sealed, fully secure, nondescript package.


All of our Metalor gold bullion products come with a certificate of authenticity

 

Top 3 Best Selling Metalor Gold Bars
 


1. Metalor 100g Gold Bar

Offering only a slightly lower price-per-gram than some of the larger Metalor bars, the popular 100g format remains our bestselling Metalor gold bar, and represents great value for investors.

 

 


2. Metalor 10g Gold Bar

The popular Metalor 10g Gold Bars make ideal high-end gifts for special occasions like weddings and anniversaries. (Check out our dedicated gifts section for more gold gift ideas.)

 


 


3. Metalor 100g Cast Gold Bar

Typically a few GBP less than its best-selling equivalent, the Metalor 100g Cast Gold Bar represents the best possible £/g value.





 

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<![CDATA[UK Inflation Turns Negative]]> https://www.thegoldbullion.co.uk/blog/uk-inflation-turns-negative/ https://www.thegoldbullion.co.uk/blog/uk-inflation-turns-negative/ Tue, 19 May 2015 23:00:00 +0000 UK inflation has turned negative for the first time in over 50 years according to the latest figures from the Office of National Statistics.

The drop of 0.1% compared to April 2014 was driven by a fall in air and sea fares. There was also a significant fall in the cost of food with prices down 0.3% year-on-year.

Chancellor George Osbourne believes the lower cost of living will be a welcome relief for families and should not be confused with “damaging deflation”. The governor of the Bank of England, Mark Carney, echoed these sentiments and also said he expected inflation to remain low for some time to come.

Unfortunately, this is more bad news for savers as interest rates are likely to be kept on hold at 0.5%. Some analysts also believe negative inflation is indicative of underlying weakness in the British economy.

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<![CDATA[UK Inflation at 0%]]> https://www.thegoldbullion.co.uk/blog/uk-inflation-at-zero-percent/ https://www.thegoldbullion.co.uk/blog/uk-inflation-at-zero-percent/ Tue, 24 Mar 2015 00:00:00 +0000 The rate of inflation has been steadily decreasing in recent months and finally hit 0% in February, according to official statistics. This now means that inflation is at its lowest level since records began in 1988.

UK Inflation (2005 - 2015)

The fall in the Consumer Prices Index (CPI) has been attributed to lower prices for food and computer goods, but the decrease was more pronounced than experts had anticipated.

The CPI tracks the cost of living in the United Kingdom, but does not include housing costs and mortgage payments. It is worth noting that the Retail Prices Index (RPI) does include these figures and was negative for much of 2009.

While low prices will be a relief for many people, it is bad news for savers. Zero inflation is likely to mean that interest rates remain at their historically low levels for some time to come. An increase in interest rates tends to mean that consumers have less money to spend which causes the economy to slow and deflation to decrease further. However, the inflation news, plus uncertainty surrounding the general election is likely to be beneficial for the gold price in the short term.

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<![CDATA[Key Points from the Budget]]> https://www.thegoldbullion.co.uk/blog/key-points-from-the-budget/ https://www.thegoldbullion.co.uk/blog/key-points-from-the-budget/ Thu, 19 Mar 2015 00:00:00 +0000 Yesterday George Osborne delivered his sixth and final budget before the general election. He highlighted how the economy grew by 2.6% in 2014 (faster than any other advanced economy), but also outlined a list of proposals that will affect the average taxpayer.

Personal Income Tax
The personal allowance will increase to £10,600 in April 2015, followed by rises to £10,800 in 2016/17 and £11,000 in 2017/18. In 2015/16, this represents a tax reduction of £120 for a basic rate taxpayer.

The level at which people start paying 40% income tax will also increase from £42,385 in 2014/15 to £43,300 in 2017/18.

For the first time in 2015/16, married couples or registered civil partners will be allowed to transfer up to one-tenth (£1,060) of their personal allowances to their spouse or partner, if the transferee only pays basic rate tax. This enables a couple to save up to £212 if one partner is not able to use the full allowance.

Savings
From 6 April 2016, the first £1,000 of interest on savings will not be taxable for a basic rate taxpayer. A 40% taxpayer will receive the same benefit on an allowance of £500. It is estimated that 95% of taxpayers will not have to pay any tax on their savings under this new system so banks and building societies will stop deducting tax at source.

The government has also announced the introduction of a "Help to Buy" ISA where they will contribute 25% to the value of the account on savings of up to £12,000. A major caveat to this new initiative is that only £200 per month can be deposited so it will take 5 years before people see the full benefit.

The annual limit for new ISAs will increase to £15,240 in 2015/16 and there has been a significant relaxation of the rules regarding withdrawing money from the account. At present, any money withdrawn from an ISA can only be reintroduced within the annual limits. In future, savers will be able to withdraw money and then replace it within the same tax year without penalty.

Pensions
Another cut in the lifetime allowance for pension savings has been announced for 6 April 2016. The limit will now be set at £1m (down from £1.25m) saving the Treasury £600m annually. However, pensioners will be able to trade in their annuities for cash pots without incurring the current 55% charge.

Self Employed
The Chancellor announced that annual paper tax returns will be abolished and replaced with digital accounts. There was also the welcome news that class two national insurance contributions will be abolished in the next Parliament.

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<![CDATA[Royal Mint Unveils New Portrait of Queen Elizabeth II ]]> https://www.thegoldbullion.co.uk/blog/royal-mint-unveils-new-portrait-of-queen-elizabeth-ii/ https://www.thegoldbullion.co.uk/blog/royal-mint-unveils-new-portrait-of-queen-elizabeth-ii/ Mon, 02 Mar 2015 00:00:00 +0000 A new effigy of Queen Elizabeth II has been unveiled by the Royal Mint.

The fifth definitve portrait of Her Majesty features a side profile of the 88-year-old monarch wearing a crown and drop earrings. The new design was created by Jody Clark and was selected in a competition organised by the Royal Mint Advisory Committee.

Reacting to the news, Mr Clark said "I still can't quite believe that my royal portrait will be featured on millions of coins, playing a small part in the Royal Mint's 1,000-year history."

His winning entry required approval from the Chancellor of the Exchequer and the Queen herself. The coin enters production today and will enter circulation later this year.

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<![CDATA[ECB Announces Quantitative Easing]]> https://www.thegoldbullion.co.uk/blog/ecb-announces-quantitative-easing/ https://www.thegoldbullion.co.uk/blog/ecb-announces-quantitative-easing/ Thu, 22 Jan 2015 00:00:00 +0000 The European Central Bank (ECB) has launched its widely expected bid to rejuvenate the Eurozone economy.

The ECB president, Mario Draghi, announced the bank would buy more than €1 trillion in assets in a move far larger than anticipated. The ECB will buy €60 billion bonds each month until the end of September 2016 in a process known as quantitative easing (QE). In theory, QE increases the supply of money, keeps interest rates low and encourages borrowing.

Markets reacted positively with bond prices rallying across the board. However, the news met with a muted response in Germany where politicians and business leaders fear it will reduce the pressure on European countries to reform their economies.

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<![CDATA[Switzerland Abandons Cap on Franc]]> https://www.thegoldbullion.co.uk/blog/switzerland-abandons-cap-on-franc/ https://www.thegoldbullion.co.uk/blog/switzerland-abandons-cap-on-franc/ Thu, 15 Jan 2015 00:00:00 +0000 The Swiss National Bank (SNB) has abandoned the cap on the franc’s value against the euro after deciding it was no longer justified.

The cap, which was introduced in September 2011, set a minimum exchange rate of 1.20 francs to the euro. This was in response to the “massive overvaluation” of the Swiss franc caused by investors seeking safety amidst the Greek sovereign-debt crisis.

While the franc was held at 1.20 to the euro, in recent months it had followed the euro's decline against the dollar.

The surprise move by the SNB led to chaotic trading with the franc soaring by as much as 30% and shares down 9% by the end of the day. One trader described “carnage” as investors moved to buy “safe haven” assets such as gold and German bonds.

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<![CDATA[UK Heads Towards Deflation]]> https://www.thegoldbullion.co.uk/blog/uk-heads-towards-deflation/ https://www.thegoldbullion.co.uk/blog/uk-heads-towards-deflation/ Tue, 13 Jan 2015 00:00:00 +0000 Following the news of deflation in the Eurozone, official figures have shown that the UK inflation rate also fell sharply in December.

The Consumer Prices Index (CPI) now stands at just 0.5%, its lowest rate since May 2000.

According to Mark Carney, the governor of the Bank of England, low inflation is likely to lead to lower interest rates for longer. A fall below 1% also requires Mr Carney to write a letter of explanation to the Chancellor of the Exchequer.

Leading economists believe that the rate of inflation will continue to fall making it unlikely there will be an increase in interest rates "for some considerable time to come".

Watch Mark Carney speak to the BBC's Economics Editor Robert Peston about inflation:

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<![CDATA[Pressure Mounts for QE in Eurozone]]> https://www.thegoldbullion.co.uk/blog/pressure-mounts-for-qe-in-eurozone/ https://www.thegoldbullion.co.uk/blog/pressure-mounts-for-qe-in-eurozone/ Thu, 08 Jan 2015 00:00:00 +0000 Inflation in the Eurozone has turned negative for the first time since 2009 as pressure mounts on the European Central Bank (ECB) to take action to stimulate the economy.

Prices in December were 0.2% lower than the same period last year according to official statistics. This decrease was driven by the plunging price of oil, which has seen energy prices fall 6.3% compared to December 2013.

These latest figures were significantly below the ECB’s inflation target of approximately 2%. However, there was some respite for policymakers as the prices for services are estimated to have risen by 1.2%.

The inflation data has been called "dire news for the ECB" and makes it increasingly likely that they will launch a new round of quantitative easing (QE) later this month.

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<![CDATA[Brent Crude Falls Below $50 a Barrel]]> https://www.thegoldbullion.co.uk/blog/brent-crude-falls-below-50-a-barrel/ https://www.thegoldbullion.co.uk/blog/brent-crude-falls-below-50-a-barrel/ Wed, 07 Jan 2015 00:00:00 +0000 The price of Brent crude oil has fallen below $50 a barrel for the first time since May 2009, amid signs of slowing economic growth. The major benchmark briefly touched $49.92 a barrel in early trading on Wednesday before edging higher later in the day.

As well as a weakening global economy, increased supply has also helped push prices lower in recent weeks. North American producers have continued to increase output of shale oil and gas, while the Organization of the Petroleum Exporting Countries (OPEC) has resisted calls for a cut in production to support prices.

The oil price has now fallen by more than 50% since June. This reduction will be welcomed by businesses and the general public, but will pose a significant challenge for oil producing countries such as Russia and Venezuela which rely on the oil price to balance their budgets. 

Iain Armstrong, oil market analyst at investment management firm Brewin Dolphin said: "Unless you're lucky enough to be tied to the dollar, your currency is going to be in big trouble."

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<![CDATA[Co-op Fails Bank of England Stress Test]]> https://www.thegoldbullion.co.uk/blog/co-op-fails-bank-of-england-stress-test/ https://www.thegoldbullion.co.uk/blog/co-op-fails-bank-of-england-stress-test/ Tue, 16 Dec 2014 00:00:00 +0000 The Co-operative Bank has failed a "stress test" conducted by the Bank of England. A total of 8 banks were subjected to the test which was designed to assess their ability to withstand another economic crisis.

Five major banks passed the test, while Lloyds Banking Group and Royal Bank of Scotland were found to be at risk in the event of a severe downturn.

However, the governor of the Bank of England, Mark Carney, warned that "this was a demanding test" and the banking system was "significantly more resilient" than in 2008.

The "stress test" was intended to replicate an economic doomsday scenario and each of the banks were tested under the following conditions:

  • Sterling falls by 30%
  • House prices fall by 35%
  • Bank rate rises to 4.2%
  • Inflation rises to 6.6%
  • Unemployment rises to 12%
  • GDP falls by 3.5%
  • Share prices fall by 30%

The full results of the test are available on the Bank of England website.

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<![CDATA[Russia in Shock Interest Rate Hike]]> https://www.thegoldbullion.co.uk/blog/russia-in-shock-interest-rate-hike/ https://www.thegoldbullion.co.uk/blog/russia-in-shock-interest-rate-hike/ Tue, 16 Dec 2014 00:00:00 +0000 Last night the Russian central bank made the shock decision to increase its key interest rate to 17%.

The drastic increase of 6.5% was designed to ease the rouble's recent decline in value. This year the rouble has lost almost 50% against the US dollar amid falling oil prices and Western sanctions.

Yesterday the dollar bought 67 roubles, but the rate rise did provide some respite as it moved up to 58 against the dollar in early trading. However, the rate has since fallen back to 62 as concerns remain that the biggest rate hike since 1998 might not be enough to stabilise the currency.

In 1998, Russian interest rates soared past 100% and the government ended up defaulting on its debt. There is now the concern that a further weakening in the oil price may push the Russian economy to the brink.

Oil and gas represents approximately two thirds of Russia's exports, and public expenditure is almost completely dependent on energy-related revenues. In their absence, government debt would increase by more than 10% per year.

With the economy already expected to contract by 5% next year and inflation running at 9%, investors are certain to keep a close eye on the situation.

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<![CDATA[Christmas 2014 Opening Hours and Delivery Information]]> https://www.thegoldbullion.co.uk/blog/christmas-2014-opening-hours-and-delivery-information/ https://www.thegoldbullion.co.uk/blog/christmas-2014-opening-hours-and-delivery-information/ Thu, 11 Dec 2014 00:00:00 +0000 The Gold Bullion Company office will be closed between Midday on Tuesday 23rd December 2014, and 9am on Monday 5th January 2015. During this time our customer service team will not be available to take calls or answer emails.

Our website will continue to accept orders as normal for the duration of the Christmas period.

In order to receive your goods before Christmas, please refer to the delivery information below:

Orders under £250 (Tracked 48 Delivery)
All orders for less than £250 must be received by 3pm on Friday 19th December 2014 to ensure delivery in time for Christmas Day. You may, however, upgrade to Next Day Special Delivery for an additional fee to extend this deadline until 3pm on Monday 22nd December 2014.

Orders Over £250 (Next Day Special Delivery)
All orders for more than £250 must be received by 3pm on Monday 22nd December 2014. We must also receive any necessary ID by this date to ensure delivery in time for Christmas Day.

Cheques
We regret that we can no longer accept cheques in time for Christmas Delivery.

A small team of staff will be dispatching orders on Tuesday 30th December 2014 to ensure our customers receive their goods as quickly as possible after Christmas. All orders after this date will be dispatched upon our return on Monday 5th January 2015.

The Gold Bullion Company would like to thank our customers for their business this year and wish you all a Merry Christmas and prosperous new year.

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<![CDATA[Gold Price Up as Chinese Stocks Lose 5%]]> https://www.thegoldbullion.co.uk/blog/gold-price-up-as-chinese-stocks-lose-5-percent/ https://www.thegoldbullion.co.uk/blog/gold-price-up-as-chinese-stocks-lose-5-percent/ Wed, 10 Dec 2014 00:00:00 +0000 The Shanghai Composite posted losses of more than 5% on Tuesday as investors went on a profit-taking spree just one day after the benchmark index broke past the 3,000 mark for the first time in more than three years.

Markets had been buoyed by the central bank's decision to cut interest rates last month, but shares of Chinese financial and property firms were caught in a selloff after investors decided to cash out.

Elsewhere in Asia, shares traded lower following losses on Wall Street prompted by worries over the global economy and falling oil prices. Brent crude fell to its lowest level since September 2009 in afternoon trading and is now priced at just $65.33 per barrel. 

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<![CDATA[Belgium Contemplates Repatriating Gold]]> https://www.thegoldbullion.co.uk/blog/belgium-contemplates-repatriating-gold/ https://www.thegoldbullion.co.uk/blog/belgium-contemplates-repatriating-gold/ Mon, 08 Dec 2014 00:00:00 +0000 At the end of last month the Dutch central bank announced that 122.5 tonnes of Gold had been returned to the Netherlands. Now Belgium looks set to become the second country in as many weeks to repatriate their Gold reserves.

Belgium currently owns 227 tonnes of Gold with the majority of it stored at the Bank of England. It is primarily for historic reasons that Belgium's reserves are stored in the United Kingdom as it was moved to London during World War II. However it appears that the National Bank of Belgium now believes it is time for their Gold to be returned to its rightful home.

The issue of repatriating Gold is a hot topic at the moment; last week the French Politician, Marine Le Pen, wrote a letter to the Governor of the Bank of France requesting that all French Gold be returned from overseas. Le Pen's right wing National Front party has been gaining momentum in recent months and polls suggest she may beat Francois Hollande in the next presidential election. If this happens we may see all of France's 2435 tonnes (the fifth largest holding in the world) repatriated.

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<![CDATA[Gold Climbs Higher Despite Swiss Vote]]> https://www.thegoldbullion.co.uk/blog/gold-climbs-higher-despite-swiss-vote/ https://www.thegoldbullion.co.uk/blog/gold-climbs-higher-despite-swiss-vote/ Mon, 01 Dec 2014 00:00:00 +0000 Yesterday Switzerland voted to reject the "Save Our Swiss Gold" initiative. Despite many analysts predicting a 'No' vote would push Gold slightly lower, this has not proven to be the case. Gold did drop approximately £10/oz just after the markets reopened this morning, but by the afternoon it had reversed these losses and was trading even higher than Friday.

The result of the Swiss referendum will be a big disappointment to the Swiss People's Party, which saw their motion overwhelmingly rejected by 77% of voters.

Two other referendums were also rejected on Sunday including a cap on immigration and the abolition of the flat tax system. Switzerland has a rich history of referendums with 12 alone this year, however the vast majority of them are rejected by the electorate.

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<![CDATA[Switzerland to Vote on Gold Initiative]]> https://www.thegoldbullion.co.uk/blog/switzerland-to-vote-on-gold-initiative/ https://www.thegoldbullion.co.uk/blog/switzerland-to-vote-on-gold-initiative/ Fri, 28 Nov 2014 00:00:00 +0000 On Sunday 30th November the Swiss people will go to the polls to vote on the "Save Our Swiss Gold" initiative. This movement was started by Parliamentarians Luzi Stamm, Lukas Reimann and Ulrich Schlüer and calls for the following changes to the constitution:

  1. The Swiss National Bank (SNB) would be required to keep at least 20% of its assets in gold.
  2. The SNB would be banned from selling any of its gold holdings in the future.
  3. All Swiss gold that is currently held abroad would be repatriated.

Mr Reimann makes a compelling case for Switzerland to vote 'Yes' in the following video:

Unfortunately for the Swiss People's Party politician, support for the initiative appears to be wavering with the most recent polls suggesting just 38% of voters planned to back it in the referendum.

Understandably, the Swiss National Bank are firmly against the "Save our Swiss Gold" as it limits their options for propping up the economy in times of uncertainty. As such the SNB has embarked on an aggressive PR campaign to discredit the motion which appears to be succeeding.

Whichever way Switzerland decides to vote on Sunday, there is likely to be a knock-on effect on the price of precious metals on Monday morning. A 'No' vote may trigger a drop in the Gold price, while a 'Yes' vote is likely to lead to an increase as the markets establish how the SNB will finance the purchase of 1500 tonnes of Gold over the next three years.

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<![CDATA[Mobile-Friendly Website Now Live]]> https://www.thegoldbullion.co.uk/blog/mobile-friendly-website-now-live/ https://www.thegoldbullion.co.uk/blog/mobile-friendly-website-now-live/ Wed, 19 Nov 2014 00:00:00 +0000 Today we are pleased to announce the launch of our new, mobile-friendly website.

Between 1 May and 31 October, approximately 25% of our customers visited www.thegoldbullion.co.uk on a mobile device. Unfortunately, during this time the browsing experience on a small screen was not as user-friendly as it could have been and required a lot of 'pinching and zooming' to navigate. Therefore we have utilised the latest technology to update the website so it dynamically resizes itself depending on the customer's screen size.

During the redevelopment of the website, we also improved efficiency and reduced the time is takes to load the site from 4.38 seconds to 2.33 seconds.

We hope these changes to our website will improve the browsing experience and make it easier for our customers to purchase gold bullion online regardless of whether they are using a phone, tablet or desktop PC.

If you have any questions or comments about our new site, please do not hesitate to contact us by telephone on 0121 523 1047 or by email on sales@thegoldbullion.co.uk.

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<![CDATA[2015 Gold Sovereigns and Gold Britannias in Stock]]> https://www.thegoldbullion.co.uk/blog/2015-gold-sovereigns-and-2015-gold-britannias-now-in-stock/ https://www.thegoldbullion.co.uk/blog/2015-gold-sovereigns-and-2015-gold-britannias-now-in-stock/ Thu, 06 Nov 2014 00:00:00 +0000 Today we have taken delivery of our first consignment of 2015 Gold Sovereigns and 2015 Gold Britannias.

The Sovereign is our most popular Gold coin and the design is unchanged from last year. The 2015 Gold Britannia also has the same design as the 2014 coin, but has a slightly different finish; both the obverse and the reverse of the coin now have a dimpled effect giving it a matte finish.

These 2015 coins will be a particularly special issue as only the early editions will feature the current portrait of Queen Elizabeth II by Ian Rank-Broadley. The Royal Mint have announced a competition to create a new depiction of Her Majesty, which will see the design change for the first time in 16 years. Sovereigns and Britannias struck in 2015 will be among the first coins to use the new design.

2015 Gold Sovereigns Now in Stock2015 Gold Britannias Now in Stock

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<![CDATA[Gold: A Universal Currency]]> https://www.thegoldbullion.co.uk/blog/gold-a-universal-currency/ https://www.thegoldbullion.co.uk/blog/gold-a-universal-currency/ Mon, 25 Aug 2014 23:00:00 +0000 On the 18 September 2014 Scotland will make one of the biggest decisions in its history.

The question that dominated the debate last night was: "What currency will an independent Scotland have?"

The Scottish Government have outlined their vision for a formal currency agreement in the following article: http://www.yesscotland.net/answers/what-currency-will-independent-scotland-have

However, all three main UK parties have repeatedly threatened to veto a currency union. This may yet turn out to be an idle threat, but one of the alternatives being mooted by Alex Salmond is to unilaterally use the Pound in a process known as Sterlingisation. The Adam Smith Institute believes this may actually be the most effective solution, but under Sterlingisation Scotland will likely lose the Bank of England as lender of last resort.

Many of our customers tell us their motivation for investing in Gold and Silver is their lack of confidence in the banking system. With the continued confusion surrounding the future of the United Kingdom this is the perfect time to ensure you control a portion of your own wealth.

The Gold Bullion Company recommend 2014 Gold Britannias and Mixed Year 1oz Gold Krugerrands for savvy Scottish investors looking to protect their future.

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<![CDATA[Lose Weight for Gold]]> https://www.thegoldbullion.co.uk/blog/lose-weight-for-gold/ https://www.thegoldbullion.co.uk/blog/lose-weight-for-gold/ Tue, 29 Jul 2014 23:00:00 +0000 Dubai has announced if its citizens lose 2.2 pounds (1kg) they will be awarded 1 gram of gold for every kg they lose. But if children ages 2-14 manage lose weight then 2grams of gold will be awarded; However only two children per family can take part in the 2- month program. The minimum weight loss is 2kg to be awarded any gold. The “Your Child in Gold” program was initiated during Ramadan and was seen to be the most appropriate as this reminds people of the benefits to weight loss.

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<![CDATA[CME and Thompson Reuters Replace Silver Fix]]> https://www.thegoldbullion.co.uk/blog/cme-and-thompson-reuters-replace-silver-fix/ https://www.thegoldbullion.co.uk/blog/cme-and-thompson-reuters-replace-silver-fix/ Wed, 16 Jul 2014 23:00:00 +0000 It was confirmed by The London Bullion Association (LBMA) that CME will provide the platform and Thompson will provide the administration. Both companies will begin tests over the next few weeks and hope for everything to get started around mid-August. It is now believed that this will turn attention to changing the gold fix process and many other metals. The new price is electronic, auditable, auction-based and also tradable.

Source: http://uk.reuters.com/article/2014/07/11/uk-silver-fix-idUKKBN0FG14E20140711

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<![CDATA[Iron Age Coins Found in a Cave]]> https://www.thegoldbullion.co.uk/blog/iron-age-coins-found-in-a-cave/ https://www.thegoldbullion.co.uk/blog/iron-age-coins-found-in-a-cave/ Mon, 07 Jul 2014 23:00:00 +0000 Four Roman and Iron Age coins were discovered by a member of the public on their expedition in the peak district. These coins are said to be more than 2,000 years old and it is very unusual for coins from two different civilisations to be buried together. It sparked a widespread search for more coins and this was even more unusual as wounded ex-soldiers helped with finding more. These have been cleaned and will be on permanent display at the Buxton Museum this year.

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<![CDATA[Are Gold Mines a Thing of the Past?]]> https://www.thegoldbullion.co.uk/blog/are-gold-mines-a-thing-of-the-past/ https://www.thegoldbullion.co.uk/blog/are-gold-mines-a-thing-of-the-past/ Tue, 01 Jul 2014 23:00:00 +0000 Reports are surfacing that famed American jeweller to the stars Jacob Arabo and his company Jacob and Co have been implicated in illegal gold mining in Swaziland. According to reports an employee of the company is currently being held by the police for possession of 27kg of illegal gold bullion.

According to reports the company have been illegally mining gold in Lufafa Mountains in Swaziland, the company is permitted to prospect for gold in the area but not to mine. Jacob and Co are licenced to mine for the precious metal in the Northern Hhohho area of the country in accordance with the governments regulations. According to reports any gold found in the Lufafa Mountains region must be reported and turned over to the local authorities which Jocob and Co have failed to do. 

Whether any charges will or could be brought against Mr Arabo for his companies reported actions is currently unclear but Mr Arabo has had previous brushes with the law when he was convicted for money laundering in 2008 and served two years in prison.

In contrast, Umicore, one of our authorised partners have cut down on their mining efforts all together and are focusing more and more on recycling or ‘Urban mining’.

‘Urban mining’ involves reclaiming scrap gold from used and discarded electronics. It takes 3-4 tonnes of electronics to produce 1 kilo of gold whereas to produce the same amount of gold from mining in the ground you would have to process 200 tonnes of rock and earth.

Does ‘Urban mining’ appear to be the future of the gold industry rather than the traditional more inefficient mining techniques?

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<![CDATA[Bible Inspires £200,000 Donation]]> https://www.thegoldbullion.co.uk/blog/bible-inspires-200000-pound-donation/ https://www.thegoldbullion.co.uk/blog/bible-inspires-200000-pound-donation/ Mon, 30 Jun 2014 23:00:00 +0000 A valuer at a Derbyshire auction house was astonished when a man walked in with a rucksack containing £200,000 worth of gold.

The man, who wished to remain anonymous, told the valuer how he had kept the collection of sovereigns, rings and ingots in the bathroom of his home.

Staff at Charles Hanson’s auction house were then surprised for a second time when the mystery man told them he wished to donate the valuables to a local charity. This extraordinary act of kindness came after he picked up a Bible and randomly opened it up at Jesus's advice to the Rich Man: "If you want to be perfect, go, sell your possessions and give to the poor, and you will have treasure in heaven."

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<![CDATA[Important News for Coin Investors]]> https://www.thegoldbullion.co.uk/blog/important-news-for-coin-investors/ https://www.thegoldbullion.co.uk/blog/important-news-for-coin-investors/ Sun, 29 Jun 2014 23:00:00 +0000 There is a good possibility that there will be a correction in Gold and Silver this week (30th June 2014) in the USA fractional coins and small European coins like sovereigns, German 20 Marks, Dutch 10 Guilders, Suisse 20 Franks, Mexican 10, 5, 2, 1/2 Pesos and 1/10th Krugerrands have all been difficult to buy. Many coins have been shipped to Europe which could indicate what the people believe is in the Euro's future, the lack of these coins shows a strong demand for gold on June 19th. On June 19th Gold had a significant price increase but could not make it above $1326.50 but there is a likely hood of gold falling back to $1295 - $1300 where it would be a good time to buy. If silver should fall back to $20.50 this would be another good price point to buy at.

On June 27th 1893 the New York stock market crashed and by the end of the year 600 banks and 74 railroads had folded, the more things change the more they stay the same.

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<![CDATA[24 Carat Gold Loaf]]> https://www.thegoldbullion.co.uk/blog/24-carat-gold-loaf/ https://www.thegoldbullion.co.uk/blog/24-carat-gold-loaf/ Wed, 25 Jun 2014 23:00:00 +0000 A baker is about to reveal the UK’s most expensive loaf of bread - made with champagne and 24 carat gold pieces. This will be sold at the Hamper Llangollen food festival later this year on October 18-19. This is apparently bringing back an old tradition when glamorous ingredients to bread were a proud symbol. It is also said that edible gold has health benefits.

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<![CDATA[Sachin Tendulkar Honoured with Gold Coin]]> https://www.thegoldbullion.co.uk/blog/sachin-tendulkar-honoured-with-gold-coin/ https://www.thegoldbullion.co.uk/blog/sachin-tendulkar-honoured-with-gold-coin/ Wed, 25 Jun 2014 23:00:00 +0000 British East India Company has made a special legal tender gold coin worth £12,000 in honour of the cricketing legend Sachin Tendulkar. This has been given as a commemorative coin for Tendulkar’s amazing career of 24 years. There will only be 210 gold coins weighing 200g each to pay tribute globally. It is said only a few people will see this coin in real life, making them very rare within a large amount of fans who will want a piece of the action.

Each of the 210 coins is given in a custom made box, a personally signed certificate of authenticity with an autographed cricket bat from the player. The subject of ‘legal tender’ is a mark of distinction given to people who have achieved great things in history. Sachin’s 200th test was shown some appreciation by an autographed bat, helmet and his number 187 which he was wearing during the 200th final test match in Mumbai during November 2013, where he declared his retirement.

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<![CDATA[Workers Find Gold Bar]]> https://www.thegoldbullion.co.uk/blog/workers-find-a-gold-bar-whilst-digging-in-kokand/ https://www.thegoldbullion.co.uk/blog/workers-find-a-gold-bar-whilst-digging-in-kokand/ Sun, 22 Jun 2014 23:00:00 +0000 Workers in the city of Kokand, Uzbekistan have discovered a gold bar worth $750,000.

The workers were digging a cesspit near the Hamza cinema when they stumbled across the 13.5 kilogram bar which is said to date from the beginning of the last century. Despite an average daily income of just $3-$8, the honest workers promptly handed their find into the city police department.

Fortunately, Uzbek legislation decrees that anyone who finds an historical artifact is entitled to receive 25% of its value!

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<![CDATA[US Takes Action in Iraq]]> https://www.thegoldbullion.co.uk/blog/us-takes-action-in-iraq/ https://www.thegoldbullion.co.uk/blog/us-takes-action-in-iraq/ Thu, 19 Jun 2014 23:00:00 +0000 Following our article on the Iraq insurgency it has been announced that President Barack Obama is sending 300 military advisers to the country due to increased instability caused by ISIS related activity. President Obama has stressed that these advisers are not active combat personnel returning to the country but are there to assess and better understand the threats in the region, however he did not rule out military intervention.

This has been one of the major factors that have pushed investors into purchasing gold which is felt to be a more stable commodity with the current unsettled state of Iraq. This came to a head on Thursday when prices jumped to a nine week high following the statement President Obama has made. Will the actions of the US over the coming months push gold and silver even higher by encouraging traders and investors who want to avoid risk to buy gold and silver?

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<![CDATA[Iraqi Insurgency Heightens]]> https://www.thegoldbullion.co.uk/blog/iraqi-insurgency-heightens/ https://www.thegoldbullion.co.uk/blog/iraqi-insurgency-heightens/ Sun, 15 Jun 2014 23:00:00 +0000 The Gold price quickly rose as news of insurgents invading an important city in Iraq became apparent. The insurgents invaded the city of Mosul which is near one of Iraq’s main oilfields which in turn lifted gold prices.

Traders are now basing themselves on the news in Iraq and it is expected that the gold price will rise sharply in the coming weeks.  The FOMC meeting this week will influence the future markets and it’s predicted to be another $10 billion cut which has been the situation at each of the previous meetings held in the past.

Is now the time to buy gold before the price rises further?

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<![CDATA[Treasure Found on 'US Ship of Gold']]> https://www.thegoldbullion.co.uk/blog/treasure-found-on-us-ship-of-gold/ https://www.thegoldbullion.co.uk/blog/treasure-found-on-us-ship-of-gold/ Sun, 08 Jun 2014 23:00:00 +0000 A US-deep ocean exploration firm has recovered nearly 1,000 ounces of gold, worth $1.13m (£800,000), on a dive to a historic Atlantic Ocean shipwreck. The discovery suggested that told remains on the sunken ship. The SS Central America sank in 1857 killing 425 people, triggering one of the world's first financial crises. This was said to have been caught in a hurricane 160 miles off the South Carolina Coast. This was carrying 21 tonnes of gold which was intended to prop up the cash-strapped banks of New York. As a result, it's loss created financial panic! 

What would you do if you found such a large amount of gold?!

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<![CDATA[Positive Signs for Gold Investors]]> https://www.thegoldbullion.co.uk/blog/positive-signs-for-gold-investors/ https://www.thegoldbullion.co.uk/blog/positive-signs-for-gold-investors/ Thu, 05 Jun 2014 23:00:00 +0000 There are a number of things making it more positive for gold investors.

Restrictions on gold imports into India have been lifted, the world’s second largest importer.

The restrictions imposed by the Indian Government backfired and created a boom in illegal gold smuggling.

The global demand for jewellery climbed in the past 3 months of this year boosted by a 30% year on year increase in China.

China is the top producer, importer and consumer of the much desired yellow metal.

It is expected that gold demand will climb by 20% over the next 4 years as the Chinese get richer.

The gold and silver market has seen a flat trading range and will probably continue through the summer as this is traditionally a quiet time while the big traders are off on their holidays.

The news that a banker was rigging the gold price comes as no surprise to The Gold Multi-Trust Action Committee formed in 1998 in the United States of America. They argue that the gold price has been suppressed for decades by global governments in collusion with banks. The basic argument is that gold is a powerful international currency that – if allowed to trade freely would determine the value of other currencies, government bonds and the level of interest rates.

As a result central banks suppress gold to prop up the confidence in their currencies and bonds.

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<![CDATA[Gold May Fall to $1,100 then Explode to New Highs]]> https://www.thegoldbullion.co.uk/blog/gold-may-fall-to-1100-then-explode-to-new-highs/ https://www.thegoldbullion.co.uk/blog/gold-may-fall-to-1100-then-explode-to-new-highs/ Mon, 02 Jun 2014 23:00:00 +0000 Gold could fall to a low of $1,100 per ounce then rocket to new highs in late 2015 or early 2016 according to a prediction made using the Elliott wave principle. Similarly, silver is expected to fall to a low of roughly $17.50 before a sharp climb to $60 in 2016.

If this prediction plays out as expected, those who have maintained a bullish outlook on gold and silver stand to gain the most.

The gold price has been following a typical Elliott wave cycle, and the overall supercycle which started in 2000 has not yet completed. Assuming this cycle continues, gold should see another surge with a peak near the end of 2015. However, before that, the price may well fall to a low of just below $1,100 which would be the fourth retracement since the 2011 high of $1,960. This low point may happen in July or August 2014, but it is anticipated that there will be a very swift recovery to a high of around $2,400 by late December 2015 or early January 2016. This would signify the end of the current wave pattern and would be followed by a period of decline in the gold price.

It has been said that there are three main swings during a price cycle and these have become known as the SHOCK-POP-DROP. The SHOCK was a sell off that occurred in March 2009 sending the market to new lows. The second phase started shortly afterwards and caused a huge increase in the price. Despite a few short term dips, the Elliott wave cycle predicts that the overall POP will continue until the end of 2015.

If these predictions turn out to be correct, people holding gold and silver will see phenomenal gains with a doubling in gold and a trebling in silver in a time frame of just 18 months.

All of this sounds like a good opportunity to buy gold and silver for a medium term investment.

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<![CDATA[Why Buy Gold Coins?]]> https://www.thegoldbullion.co.uk/blog/why-buy-gold-coins/ https://www.thegoldbullion.co.uk/blog/why-buy-gold-coins/ Thu, 29 May 2014 23:00:00 +0000 For those of you in the know, you will be aware that the people at MoneyWeek.com are big fans of Gold Investment. They recently published an article extoling the virtues of gold sovereigns; a subject that is very close to the heart of everyone here at The Gold Bullion Company. We have recently created a whole new page on our site for Rare Gold Coins that gives our customers the opportunity to not only make a prudent investment and vary their gold holdings but also own a piece of history. Many will know that coins can attract a higher price than regular gold bullion but it is important to remember that these coins are significant markers for the countries that produce them and therefore have a value that can greatly exceed the gold spot price.

Gold Sovereigns have always been a staple of British investment since they were first introduced under the reign of George III in 1816, but their popularity grew significantly under the reign of Queen Victoria. There are fewer and fewer of these coins available on the open market but The Gold Bullion Company is giving its customers the chance to invest in rare gold coins. However, there is very limited stock of these coins and many sold out on the first day of being available on our website.

Don’t miss this chance - own a rare piece of history!

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<![CDATA[Barclays Fined £26million for Gold Price Fixing]]> https://www.thegoldbullion.co.uk/blog/barclays-fined-26million-for-gold-price-fixing-gold-bullion/ https://www.thegoldbullion.co.uk/blog/barclays-fined-26million-for-gold-price-fixing-gold-bullion/ Thu, 22 May 2014 23:00:00 +0000 Barclays bank has been fined for fixing the gold price because one of its traders used the gold price to avoid having to pay out on a customer’s order. The UK Financial Conduct Authority is striking a fine on the British trader James Plunkett, who sent out information aimed at changing the price of Gold. This happened only a day after Barclays paid £290 million in fines and it became the first bank to be charged in rigging.

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<![CDATA[Gold Continues to Dazzle]]> https://www.thegoldbullion.co.uk/blog/gold-continues-to-dazzle/ https://www.thegoldbullion.co.uk/blog/gold-continues-to-dazzle/ Tue, 20 May 2014 23:00:00 +0000 Nothing stops Indian tourists from finding a way to buy gold as there are current restrictions placed by the Indian government who have stopped people from importing the much loved metal - this has lost its spot as the world’s number one gold market at the end of 2013. People are still finding ways to get their hands on the dazzling goods!

However smuggling of gold through unofficial ways has continued just as it has done in previous years. Newly elected Prime Minister Modi may lift the existing duty controls to try and control this. This has made a huge dent in sales within the UAE as sales are up by 18% due to Indian tourists and their love for gold.

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<![CDATA[Record £516,000 for Royal Coin]]> https://www.thegoldbullion.co.uk/blog/record-516000-for-royal-coin/ https://www.thegoldbullion.co.uk/blog/record-516000-for-royal-coin/ Sun, 18 May 2014 23:00:00 +0000 A very rare coin bearing the head of Edward VIII has sold for a record £516,000, the highest sum ever paid for a British Coin.

There are only two 'proof' gold coins that were made to mark the kings coronation in 1937. There are only six of these coins that were made to show the king: four are in museums,  there are some in a complete set of rare sovereigns, this would be the sixth coin.

Fancy your very own British rare coin? The Gold Bullion Company is now selling a range of rare coins, get your hands on some while stocks last!

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<![CDATA[The Treasure Hunters]]> https://www.thegoldbullion.co.uk/blog/the-treasure-hunters/ https://www.thegoldbullion.co.uk/blog/the-treasure-hunters/ Sun, 11 May 2014 23:00:00 +0000 Did anyone see this amazing program on BBC One a month ago? The show aired on April 7th 2014 showing an array of precious stones and metals. One being gold! (of course). Ellie Harrison and Dallas Campbell travel across the world on the ultimate treasure hunt.

The first episode sees Ellie venture down one of the deepest gold mines in the world that is based in South Africa.

Now I'll give you a bit of history: The incredible story of the gold and amber living space that once belonged to Catherine the Great that was stolen during the Second World War, the original has never been found. This was called the eighth wonder of the world and was completed in 1756. In the meantime, the palace of Tsarskoye Selo is home to a reconstruction of the room. This was begun in 1979 and completed twenty-four years later.

So, will the original room ever be uncovered? The mystery remains. 

Here is a short YouTube clip of the program below.

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<![CDATA[Where in the world is gold found?]]> https://www.thegoldbullion.co.uk/blog/where-in-the-world-is-gold-found/ https://www.thegoldbullion.co.uk/blog/where-in-the-world-is-gold-found/ Wed, 13 Nov 2013 00:00:00 +0000 Gold can be found spread across much of the planet and has been mined on each of the seven continents - even Antarctica! (Although not in a commercial capacity).

This wide distribution of gold is thought by scientists and geologists to be due to millennia of bombardment by huge alloy rich meteorites that peppered the earth’s surface with deposits of gold over two billion years ago.

Gold is acquired from the ground in many different ways, varying greatly between countries and changing with the geography and geology of each location. From deep mining of hard rock deposits such as those found in South Africa, where mines reach almost 4 kilometres below the earth’s surface to panning of open streams in the Alaskan wilderness, gold mining is a dangerous and ever increasingly expensive business!

Just how much gold is there on planet earth? Depending on who you ask, Scientists and Geologists estimate anywhere from 155 tonnes to over 2.5 million tonnes! But more important is the amount of accessible gold, that is, the metal that can be mined within the scope of current technological, environment and economic boundaries…

As ‘in ground’ gold becomes scarcer, miners have to dig deeper, travel further and develop cutting edge technology to keep up with demand. Longer term, these ever increasingly exhaustive activities must surely force the price of gold up as a result of simple supply and demand economics.

So where in the world is the majority of gold found? The top ten gold producing countries mined a total 1,802 metric tons of gold in 2011, 67% of the total 2,687 tons of gold mined across the world for the year.

Top ten gold mining countries in 2011

* Data from United States Geological Services Mineral Commodities Study.

So what happens to all of that mined gold? The World Gold Council report that in 2012, jewellery manufacturing was the largest ‘consumer’ of gold, utilising just over 400 tonnes of the metal, followed by investment bullion bars and coins at 285 tonnes and almost four times as much as technology usage at just over 100 tonnes.

Want to learn more about gold mining and usage? The World Gold Council have a wide range of articles covering every aspect of gold.

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<![CDATA[Royal Mint 2014 Products Available to Pre-order]]> https://www.thegoldbullion.co.uk/blog/royal-mint-2014-products-available-to-pre-order/ https://www.thegoldbullion.co.uk/blog/royal-mint-2014-products-available-to-pre-order/ Wed, 30 Oct 2013 00:00:00 +0000 The Royal Mint have this week advised of a mid-November release date for 2014 Gold and Silver Britannia and Gold Sovereign Products.

Royal Mint 2014 Coin Collection

Royal Mint 2014 Gold Sovereign – Retaining the traditional George and Dragon scene to the reverse and Queen Elizabeth II bust to the obverse, the 2014 Gold Sovereign will feature 7.98 grams of 22 carat gold captured within a coin measuring 22mm in diameter.

Royal Mint 2014 Gold Britannia – Since production started in 1987, the annual mint of the British 1oz bullion standard coin has carried the iconic Britannia image to the reverse and Queen Elizabeth II bust to the obverse. The 2014 Gold Britannia continues the new 24 carat format of the 2013 coin, providing the owner with a full troy ounce of 99.99% (four nines) fine gold bullion contained within a 38.6mm diameter format coin.

Royal Mint 2014 Silver Britannia – Similar in appearance to the gold Britannia coin, the visually stunning 2014 Silver Britannia Coin features a full troy ounce of 99.9% fine silver bullion in a large 38mm diameter coin.

Please note, pre ordered 2014 Royal Mint products will be dispatched as soon as stock arrives to use from the mint, current estimates are for a mid-November 2014 schedule.

Don’t forget, Royal Mint Britannia and Sovereign coins are regarded as legal tender in the UK and as such, carry Capital Gains Tax Free (CGT) status, ensuring you’ll pay no tax on any realised profits when you come to sell your investment. You can find out more about the rules and regulations regarding Capital Gains Tax on the HMRC web site.

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<![CDATA[How does the US Dollar Affect the Gold Price?]]> https://www.thegoldbullion.co.uk/blog/how-does-the-us-dollar-affect-the-gold-price/ https://www.thegoldbullion.co.uk/blog/how-does-the-us-dollar-affect-the-gold-price/ Thu, 24 Oct 2013 23:00:00 +0000 The US Dollar and Gold Price share a special relationship, traditionally, when the dollar value moves, the gold price… runs the other way!

The United States Dollar is regarded as a global currency, familiar and accepted as a form of payment in many countries around the world, over the past sixty years through strength, familiarity and consistency, the US Dollar has achieved status as the World Reserve Currency.

Chart showing the relationship between the US Dollar value and the Gold Price

So why, when the US dollar weakens, does the gold price (and to some extent the silver price) tend to move in the opposite direction?

When discussing the dollar effect on the gold price, we actually need to look at the US Dollar index, a mean weighted combination of five other major global currencies pitched against the US Dollar, the Euro, Japanese Yen, Canadian Dollar, Swedish Krona and Swiss Franc. The US Dollar index will rise if the US Dollar strengthens against these five primary currencies, and likewise, drop as the US Dollar weakens

What are the other primary drivers of the gold price?

Gold and… Inflation - Gold is considered the ultimate anti-inflationary-tonic, as inflation takes hold and the dollar devalues, investors look to hedge against the dollar losses through rock solid gold.

Gold and… Deflation – Just as the gold price thrives during times of inflation, deflation will take the wind out of the gold price as the dollar strengthens and investors regain confidence.

Gold and… Interest Rates – Gold will shine through when interest rates are low, lack lustre investment performance from savings and bonds tend to drive investors towards the precious metal. In times of very low interest, savings can effectively lose money as inflation exceeds investment performance!

Looking for more gold price information? Kitco offer a large range of precious metal charts, analytics and analysis.

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<![CDATA[Gold Scarce in India as Festival Season Begins]]> https://www.thegoldbullion.co.uk/blog/gold-scarce-in-india-as-festival-season-begins-gold-bullion/ https://www.thegoldbullion.co.uk/blog/gold-scarce-in-india-as-festival-season-begins-gold-bullion/ Mon, 21 Oct 2013 23:00:00 +0000 The world's largest physical bullion buying nation are hungry for gold but are government policies restricting trade?

The Gold Dealers in Mumbai's Zaveri Bazaar, India's largest Gold Bullion market, look sheepish as telephones go unanswered and customers dash from store to store, fuelled by rumours of stock, as buyers desperately seek out dealers with gold in any form to sell!

The usually buoyant Bullion dealers are having to turn customers away as they struggle to source metal to sell, a result of government enforced import restrictions which has seen hardly any gold has enter the country since mid-July.

The Indian Festival season is underway… traditionally the busiest time for the Indian gold trade as families purchase gold gifts and dowries for marriages which, in India are typically held around auspicious days in the festival calendar, celebrating harvest and Lakshmi, the goddess of wealth.

Trying to counter a huge import/export trade deficit and weakening Rupee, the Indian government have imposed strict regulation on the import of gold - India's second largest import after oil. Gold entering the country is currently subject to a hefty 10% import duty and regulation states that 20% of metal imported must then be re-exported! The extensive cost and complex rules have reduced trade at the majority of Mumbai's bullion dealers by as much as 90%.

The scale of demand and scarcity of the metal has pushed premiums close to $100 per ounce over the London Gold Price, far higher than the average $2 premiums of neighbouring Asian countries in the region. Even on the black market, gold illegally smuggled into the country is fetching premiums in excess of $50 per ounce.

The situation is set to ease in coming weeks as fresh supplies are due to arrive in the country but these are destined to banks and larger bullion dealers, leaving many of the smaller jewellery manufacturers without the core materials needed to restart production.

India has long been the world’s largest physical gold buyer, taking delivery of 864 tonnes of the precious metal in 2012 alone according to the World Gold Council. The current situation in Indian demonstrates the strength of gold in the global economy and the fear governments hold for the precious metal!

Read more from Retuters about the current India Gold Supply struggle.

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<![CDATA[US Shutdown, Gold Price to Rocket?]]> https://www.thegoldbullion.co.uk/blog/us-shutdown-gold-price-to-rocket/ https://www.thegoldbullion.co.uk/blog/us-shutdown-gold-price-to-rocket/ Mon, 07 Oct 2013 23:00:00 +0000 The US political system is in turmoil, as the US budget crisis continues, the ongoing US debt ceiling debate creeps out from under the carpet and back into the headlines yet again, all eyes are on the 17th October, the day on which the US economy is estimated to hit the legal limit to which the country can continue to borrow money, if no agreement is reached before this date, the US will default on its committed borrowing, something so unbelievable, many predict the US dollar will be sent crashing down!

During an interview Friday, US Treasury Secretary Jacob J. Lew confirmed "if the United States government, for the first time in its history, chooses not to pay its bills on time, we will be in default". "There is no option that prevents us from being in default if we don’t have enough cash to pay our bills."

Technically, gold has moved into a short-term holding pattern, reports coming out of Kitco last week show signs of a potentially bearish pattern emerging, this will undoubtable become clearer as the debt ceiling debate nears boiling point. As yet, the gold price has seen only marginal gains, lifting from a PM London fix of £796.12 (01/10/2013) up to a current live spot price of £820.04 at 7:38am (07/10/2013).

Would-be gold investors have been waiting on news of new legislation to permit the increase the debt ceiling limit, but as the deadline nears, the Republican Party dig their heels in and the US shutdown begins to hit business, investors will increasingly seek gold as a safe-harbour from the potentially stormy seas of the open markets.

Key point – China, one of the largest physical gold buyers, both in private and government holding is effectively out of market for one week from the 7th October during a national Holiday. Could the Chinese return be the catalyst the market needs to fuel the next price drive?

UK private gold buying has been steadily strengthening over the past 10 days with several companies reporting stock shortages and delays to dispatch. Capital Gains Tax Free Royal Mint Gold Sovereign and Britannia products are emerging as a clear winner for level headed medium-to-longer-term investors.

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<![CDATA[Mexican Kilo Coins Have Arrived]]> https://www.thegoldbullion.co.uk/blog/mexican-kilo-coins-have-arrived/ https://www.thegoldbullion.co.uk/blog/mexican-kilo-coins-have-arrived/ Sun, 06 Oct 2013 23:00:00 +0000 New product arrival - we now have stock of the Mexican Libertad 1 kilogram silver bullion coin. This stunning silver product features a full 1000 grams of 99.9% fine silver metal contained within a reed edged 110 mm diameter bullion coin, the perfect format with appeal to both investors and collectors alike.

Mexican 1 kilogram Libretad Silver Bullion Coin

First produced in 2002 by the Mexican Government, the 1 kilogram Mexican Libretad ‘independence’ coin compliments the standard 1 ounce Libretad coin, each depicting the Mexican coat of arms, an Eagle defeating a snake to the reverse and the glorious winged Mexican Independence Victory Column illustration to the obverse.

The competitively priced Mexican Libretad Silver Bullion one kilogram coin is dispatched complete with a certificate of authenticity to guarantee both the weight and purity of the coin.

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<![CDATA[New products arriving in September]]> https://www.thegoldbullion.co.uk/blog/new-products-arriving-in-september-2013/ https://www.thegoldbullion.co.uk/blog/new-products-arriving-in-september-2013/ Sun, 15 Sep 2013 23:00:00 +0000 The weather is changing, autumn is approaching and, if anyone needed reminding, we are now only three months away from the New Year! So it’s no surprise that the first 2014 coins have started to arrive in stock.

First through the door this year are the Perth Mint lunar series gold coins. Produced annually to represent the twelve signs of the zodiac, each of these gold bullion coins depict a stunning galloping horse design to the reverse to celebrate 2014 as the Year of the Horse.

Year of the Horse 2014 Perth Mint Lunar Coins now available

Legal tender in Australia, the Perth Mint lunar series of gold bullion coins are without doubt one of the most sought after annual edition coins that we sell. The coins are available in 1 ounce, 1/2 ounce, 1/4 ounce and 1/10 ounce denominations and feature 99.99% pure gold.

The Perth Mint 2014 lunar series of coins are minted in very limited quantities and interested buyers and collectors are advised to act quickly to secure stock.

Other 2014 edition coins expected to arrive imminently include the South African Krugerrand and Royal Canadian Mint Maple Leaf gold coins, we will announce availability as items arrive in stock.

Quick links to view and buy online: 1 oz Year of the Horse Gold Coin, 1/2 oz Year of the Horse Gold Coin, 1/4 oz Year of the Horse Gold Coin, 1/10 oz Year of the Horse Gold Coin.

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<![CDATA[Bought Gold? Wondering how to sell?]]> https://www.thegoldbullion.co.uk/blog/bought-gold-wondering-how-to-sell/ https://www.thegoldbullion.co.uk/blog/bought-gold-wondering-how-to-sell/ Tue, 30 Jul 2013 23:00:00 +0000 Consumer demand for physical gold bars and coins has grown exponentially over the past five years, driven primarily by the very active gold price over the past five years as people look for alternatives to sluggish traditional savings and investment options.

With so much metal now in private hands, a common question for many is how and where do they sell their investment and how can they maximise their return?

Where to sell… Firstly, a warning about the many high street and TV advertised ‘gold buying’ companies using expensive advertising and mass media marketing campaigns to attract customers – Many Scrap Gold Buyers are focussed on the scrap jewellery side of the businesses, offering far lower prices for gold per gram than the true value to cover additional handling and refining costs, these fees invariably extend to bullion bars and coins.

Look for a dedicated bullion dealer where the spread (The percentage difference between the buy and sell in relation to the actual metal value) will be far better than high street gold buying outlets. We current buy back many gold coin products, such as Royal Mint Sovereigns and Britannia’s at 0% commission, paying 100% of the true gold price1.

I’m ready to cash in my investment… The Gold Bullion Company offer an instant online valuation tool, enabling customers to quickly find an indicative price for many common gold and silver bar and coins.

To sell gold by post, send your items into us direct to our 95 Spencer Street address by Royal Mail Fully Insured Special Delivery, alternatively, call 0121 523 1047 to arrange an appointment to sell your items in person at our Birmingham Jewellery Quarter office.

On receipt of goods, we test, weigh and fully examine each and every item. It is important to note that we always value items in accordance with the gold price on the day we receive goods. If for any reason you’re not completely satisfied with the price offered, we will return your products without charge or delay.

1 Correct as of 31/07/2013

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<![CDATA[SAVE 1% on Royal Mint 2013 Products]]> https://www.thegoldbullion.co.uk/blog/save-1-percent-on-royal-mint-products/ https://www.thegoldbullion.co.uk/blog/save-1-percent-on-royal-mint-products/ Tue, 30 Apr 2013 23:00:00 +0000 For a limited time only, we are offering a 1% discount on 2013 Royal Mint Gold and Silver Britannia and Gold Sovereign Coins.

Each Royal Mint coins is Capital Gains Tax Free (CGT), meaning that you'll not pay any tax on any profits once you come to sell your investment bullion coins. For further information or to buy online now with your debit card, credit card or electronic bank transfer, click the view and buy button on the products below.

2013 1oz Gold Britannia Offer  2013 1oz Royal Mint Silver Britannia  2013 Royal Mint Gold Sovereign 

Looking for other Capital Gains Tax Free Royal Mint coins? Take a look at our Sovereign, Half Sovereign and Britannia Coin categories.

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<![CDATA[Telephone Issues]]> https://www.thegoldbullion.co.uk/blog/telephone-issues/ https://www.thegoldbullion.co.uk/blog/telephone-issues/ Mon, 22 Apr 2013 23:00:00 +0000 We are currently experiencing an issue with our telephone system and some customers may find that they are unable to contact us at this time (10am). Our team is working dilligently to resolve this problem. In the meantime, if you have any queries please email us at sales@thegoldbullion.co.uk. We apologise for any inconvenience this may cause.

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<![CDATA[A message from our Managing Director]]> https://www.thegoldbullion.co.uk/blog/message-from-our-managing-director-regarding-recent-delivery-delays/ https://www.thegoldbullion.co.uk/blog/message-from-our-managing-director-regarding-recent-delivery-delays/ Sun, 21 Apr 2013 23:00:00 +0000 Due to the world wide overwhelming demand for physical gold and silver products please accept our sincere apologies for the delays in our deliveries and any inconvenience this may cause you. The refineries around the world are working 24:7 to try and keep up with the demand.

For the latest information regarding our processing and delivery times, please see our service update.

Thank you for your continued business.

Paul Marcus
Managing Director, The Gold Bullion Company

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<![CDATA[Delivery Delay Update]]> https://www.thegoldbullion.co.uk/blog/delivery-delay-update/ https://www.thegoldbullion.co.uk/blog/delivery-delay-update/ Sun, 14 Apr 2013 23:00:00 +0000 Update - Please be advised we are currently experiencing extremely high numbers of email and telephone calls in relation to the current gold and silver price situation, as a result, customers may not be able to get through by telephone or may experience an extended delay in receiving a response to email. Please be assured that we are working through messages as quickly as possible, customers should email any urgent enquiries to sales@thegoldbullion.co.uk.

Due to unprecedented demand we are currently unable to guarantee next day and 1 - 2 delivery lead times for customer orders of physical gold and silver bars and coins. The recent drop in the gold and silver price has led to an exceptional increase in demand for physical gold and silver bullion products, from an afternoon gold fix of £1,028.81 last Monday, the gold price has today dropped to a spot price low of £877.00 per troy ounce - Private physical bullion investors have surged at the opportunity to purchase at the two year low.

We anticipate the majority of orders will be dispatched on time but would take this opportunity to alert customers to the current situation, we would like to apologise for any inconvenience caused and thank you for your custom.

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<![CDATA[Weather Update: Snow causing delivery delays]]> https://www.thegoldbullion.co.uk/blog/snow-causing-delivery-delays/ https://www.thegoldbullion.co.uk/blog/snow-causing-delivery-delays/ Fri, 18 Jan 2013 00:00:00 +0000 Please be advised, with significant snowfall across large areas of the UK, customers may experience a delay in delivery of orders from dates quoted. We have been advised by Royal Mail there will be delays with the delivery of orders. We are also experiencing delays with the dispatch of goods from our premises and staffing of our telephone answering services.

Please be assured, your order will be delivered to you as soon as possible.

For further information regarding Royal Mail Special Delivery services in your area, please visit the Royal Mail wintery weather status update page at www.royalmail.com/customer-service/service-updates.

We are very sorry for the inconvenience these delays may cause and will return to normal service as soon as possible.

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<![CDATA[US to mint trillion dollar platinum coin?]]> https://www.thegoldbullion.co.uk/blog/trillion-dollar-platinum-coin/ https://www.thegoldbullion.co.uk/blog/trillion-dollar-platinum-coin/ Fri, 11 Jan 2013 00:00:00 +0000 Will the US mint a $1,000,000,000 platinum coin in an attempt to alleviate continued debt ceiling crisis that continues to peek out from under the carpets of the US congress?

Following last minute talks between President Obama’s Democratic Party and the republicans on New Year’s Eve, some democrats have proposed a plan to mint a one trillion dollar platinum coin to ease pressure to-close-for-comfort debt ceiling limit.

Sounding more like the storey line to an episode of the Simpsons or a jackpot headline in a Las Vegas Casino, the move has produced a stern and immediate response from Republicans, with a bill already in progress to block the ‘minting’ of such ‘coin’. Conceded as a gimmick by most democrats and Republicans alike, the move exploits a loophole that is essentially quantitative easing without the flow of cash out into the wider economy, the coin would simply be moved to the Federal Reserve as a sale of asset with the proceeds – a trillion dollars – being added to the US treasury bottom line.

Should the US Fed actually move to produce a physical version of the coin, just how much would a trillion dollar platinum coin weight if it were to represent a true metal content value? Based on the current platinum price of $51,151.83 per kilogram (Wednesday 9th January 2013 @ 17:00) the coin would weigh a total of 19.4 metric tons or 623,734 troy ounces! That’s no small change!

If you feel the latest round of US economic calamity can only be good for the gold price throughout 2013 then our Gold Britannia coins, both VAT and Capital Gains tax free could be the perfect investment to hedge against the continued uncertainties in Uncle Sam’s wallet!

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<![CDATA[Bank of England Bullion Vaults store £197 billion]]> https://www.thegoldbullion.co.uk/blog/bank-of-england-bullion-vaults-store-197-billion-gold-bullion/ https://www.thegoldbullion.co.uk/blog/bank-of-england-bullion-vaults-store-197-billion-gold-bullion/ Thu, 20 Dec 2012 00:00:00 +0000 Professor Martyn Poliakoff, Vice president of the Royal Society, navigates the strict security checks at the Bank of England to take a look though the gold ladened shelves at the gold bullion vaults, each weighing over one tonne and containing a combined value of over £197 billion.

Ready to start your own gold store? We stock a full range of gold bar and coins from 1 gram to 1kilogram - Buy Gold Online.

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<![CDATA[Could demand from China send gold price soaring?]]> https://www.thegoldbullion.co.uk/blog/could-demand-from-china-send-gold-price-soaring/ https://www.thegoldbullion.co.uk/blog/could-demand-from-china-send-gold-price-soaring/ Wed, 28 Nov 2012 00:00:00 +0000 Analysts are predicting the world’s largest exporter and second biggest economy could hold the key to gold’s future fortunes. In 2010, China became the world&