Given the uncertainties of Brexit as we hurtle towards 29 March 2019 with no definitive solution, and the US government shutdown, it’s no surprise the gold price has been on the rise.
As There’s Not Much Else In Investing That’s Like Gold, Shouldn’t You Hold Some In Your SIPP Or SSAS?
Why Gold Is Back In Favour
Actually, many would say it’s never been out of favour.
For decades, gold has been a store of long-term value. The fact it’s not very correlated to shares and bonds is often its advantage.
An increasing number of investment managers are currently predicting that gold is likely to benefit from the market conditions in 2019.
In the last three months, the price of gold has risen by 10.5%. It includes a three month low of £900.80 and a high of £1,029.21.
Some say that the inflation-proofing qualities of commodities such as gold mean the asset class will appeal to investors generally as the US economy continues to show signs of overheating.
Others suggest gold is set to see a significant increase in value, possibly as high as 20 per cent, as investors seek safety in the face of continued uncertainty around equities, and further interest rate rises put pressure on bonds.
The strong US Dollar continues to keep pressure on both the Pound and the Euro. It’s driving the gold price higher in Sterling compared to slim gains in US Dollars.
The new price means gold is approaching levels in Sterling not seen since 2016. With Brexit still to be resolved, the gold price could surpass the all-time high of £1,178 per ounce set in September 2011.
According to Investment Week, John Reade, chief market strategist at the World Gold Council, told the FT:
A combination of rising open interest on Comex and the gold price going up tells me that new longs are coming into market.
It’s always been the case that some of the richest people on the planet routinely hold physical gold as part of a well-diversified portfolio.
SIPP and SSAS Gold
If you want to hold gold in your SIPP or your SSAS, it needs to be the right sort to comply with HMRC’s pension legislation.
Full details on pension-compliant gold are found in the SIPPclub Members Area. You can invest your cash in gold too.
11 Stunning Visualisations Of Gold
Gold is extremely rare, impossible to create out of “thin air”, easily identifiable, malleable, and it doesn’t tarnish.
By nature of these properties, gold has been highly valued throughout history for every tiny ounce of weight. That’s why it’s been used for centuries as a monetary metal, a symbol of wealth, and a store of value.
With all that value coming from such a small package, sometimes it is hard to put gold’s immense worth into context.
The following 11 images from The Money Project help to capture this about gold, putting things into better perspective.
1. The U.S. median income, as a gold cube, easily fits in the palm of your hand.
2. A gold cube worth $1 million, has sides that are 2/3 the length of a typical banknote.
3. All gold used for electrical connections in the Columbia Space Shuttle would be worth $1.6 million today.
4. Trump’s entire fortune of $3.7 billion as a gold cube would be shorter than Trump himself.
5. As a gold cube, the entire value of the Bitcoin market would fit in a hallway.
6. The fortune of the richest man on Earth, Bill Gates, would take up a single traffic lane.
7. The world’s entire annual production of gold is just a 5.5m sided (18 ft) cube.
8. Take the 147.3 million oz of gold out of Fort Knox, and it’s only slightly bigger.
9. All gold held by the Central Banks pales in comparison to the Brandenburg Gate.
10. All gold mined in human history is dwarfed by the Statue of Liberty.
11. To pay off $63 trillion of global sovereign debt, you’d need a gold cube the size of a building.
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Closing 1 February 2019
Property protected investment paying up to 12 per cent per year.
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