We were recently on Lyca Radio talking with Keith Vaz about the gold rush and how Sonny’s Jewellers is bouncing back from lockdown. To listen to the interview in full, please tap here.
We decided to go into a little more detail about why it’s currently a great time to buy OR equally, sell your gold…
The Gold Rush
Over the last few months we’ve been swept away by a near perfect storm, seeing the price of gold rise to higher than ever. Currently gold is trading at approximately $1770/Oz – that’s around $400 more than this time last year. Though there is possibility of it reaching close to $2000 per ounce, meaning now would still be a good time to invest.
The cause of this rise all comes down to opportunity cost. The idea of giving up near guaranteed gain in one investment, to get a potential greater gain in another. Generally speaking, investors find greater security in gold than other investments such as currency, stocks and shares.
The economic downfall of recent months has increased the demand for the safe-haven commodity of gold. This demand has caused the price of gold to rise so significantly, with expectations for this to continue. If you were thinking of investing, now is the time.
Preserving Wealth
One of the main reasons’ gold holds such an importance in our modern economy, is that it has successfully preserved wealth throughout thousands of generations.
For example, 50 years ago the price of gold was $35 per ounce. At the time, if you were to keep and save $35 in cash, you’d now be able to buy less for your money due to inflation. If however, you’d have invested in an ounce of gold, you’d now be sitting on around $1770 – giving you a huge return!
Particularly during times of political and economic uncertainty, investors look towards gold to hold onto their wealth. History is full of collapsing empires and currencies. During such times, those that had invested in gold were able to hold onto their wealth. This is why in times of turmoil; investors look towards buying gold.
Investing in Gold
Whether you’re looking for means of investment or you’re just wanting to add some security to your finances – investing right now wouldn’t be a bad idea. Though the price of gold is at an all-time high, it’s still set to rise.
Gold is an important part of investment portfolios. This is because the price of gold usually increases in response to events that cause the value of paper investments (such as stocks and shares), to decline. Over the years, gold has served as a hedge against inflation and erosion of major currencies – making an investment worth considering.
Wanting to sell your gold?
If you’ve been thinking about selling your gold, now would be a great time. Whilst the price of gold is at such a high, your return is set to be appealing.
Whether you’re looking to buy OR sell – please check out our gold prices, or make an enquiry via our contact form.