There may be no pot of gold at the end of the rainbow, but you may find some in the gold commodities market. Right now, gold prices are at an all-time high. You may have heard in history lessons that investing in gold is an excellent way to hedge against economic crises or severe market downturns. Many conservative investors in the UK own gold as part of their portfolio and safeguard against economic turmoil.
Learn From the Past
Take the stock market crash of 1929 as an example. The price of gold increased from $21 per ounce to more than $25 per ounce over the years—considerably out-performing the stock market. Gold also performed well during the 1970s period of stagflation and economic turmoil. As today’s stocks plummet, the price of gold continues to rise to an all-time high.
Investing in gold bullion bars is not as difficult as you think. They may not be for sale at your local grocery store, but they can be purchased from most banks and authorised dealers or brokers. The good thing is they are easily stored; they can be held by you or on your behalf in another person’s vault.
Know the Present
Before you pile up the gold, brush up on current events, both international and domestic. Global events and economic data affect the price of gold daily. Typically, when the economy falls, the price of gold fares fairly well. Get familiar with economic news, such as unemployment figures, currency valuations, and economic growth. You need to know about the geopolitical events shaping the global economy. Once you get a good grasp about the state of the economy, you’ll be able to decide whether you should invest in gold.
The thought of building your own pot of gold bullion in the UK may be exciting (and the trendy thing to do), but it’s a whole new game. The price of gold thrives during tough times, but in good times, it can flatline. Although nothing shines like gold, an investor’s desire for gold is not for gold. It is for the freedom and benefit gold provides.