Why are people investing in physical gold?

TPGC_RatioGraph_Gold1_NEW

24/02/2016

Market Crash 2016: Why are people investing in physical gold?

We’ve seen an astonishing trend within the banking sector this week. With many of our UK Banks bruised and vulnerable following 2016’s global market crash -people are panicking. Banking shares have lost considerable value with some banks almost halving in share price. Deutsche Bank is unable to meet much of its debt, shares were suspended in Barclays Bank on 8th February and RBS and Lloyds are expected to cut hundreds of branches. Once more, at a time when we need as much protection as possible –  UK government have reduced the amount that savers are protected by £10k if your bank fails. As the Euro weakens this could drop further. The fierce debate over staying in or leaving the Euro has dragged Sterling to a 7-year low. The uncertainty over our everyday banks in addition to extremely low and possibly even negative interest rates has prompted many to ask why keep more money than they have to in the bank?

Is now a good time to Invest in gold?

Henry Sanderson at The Financial Times quotes the Pure Gold Company pointing out that many savers have cleared out their ISA’s to take advantage of gold Sovereigns and Britannia’s. Both of these UK gold coins are also tax free investments like an ISA but feature less risk as there is no counter party risk. With market volatility and uncertainty escalating gold has had the best rally since the 1980’s. It’s not just about the growth in gold price but also its protection from current market risks.

How to invest in gold

There are lots of ways to invest in gold, some more risker than others. If you want expediency and are in it for more of the short-term then an ETF may be appropriate. For people that want to remove counter party risk associated with financial institutions and grow their portfolio in a tax efficient way – then physical gold ought to be a priority. “Investing in physical gold: a beginner’s guide” on Yourmoney.com nicely explains the pros and cons of investing in different types of gold.

TPGC_RatioGraph_Gold1_NEW

"It’s not just about the growth in gold price but also its protection from current market risks"

< Back to Uncategorised

Related entries

  • Why is it a Good Idea to Invest in Gold as part of a SIPP?

    The Pure Gold Company 03/07/17   A cursory look at gold’s established advantages as an investment medium should be enough – gold is a very stable, long-term investment, which means you can rely on it to hold value for a long time. Investing in gold for your Self-Invested Personal Pension is an excellent way to...Read more >
  • US Airstrikes and Trump’s Failed Promises: Gold Price Rising with Global Uncertainty

    The Pure Gold Company 25/04/2017 Donald Trump’s presidency continues to influence the gold price and provide something of an argument in favour of gold investment, as his constantly erratic and unpredictable government’s recent movements on the world stage stoke further tensions with various international players. The price of investment gold climbed sharply to a high of...Read more >