Bullion expert Oliver Temple clears up some of the common myths surrounding investing in gold.
1) Gold prices haven’t risen for a while – why invest in it?
Demand for the precious metal did actually increase during the last economic downturn. Since the start of the year spot gold prices have been nudging up again.
2) I thought gold was a safe haven – why didn’t it go up in 2015? There was the Greece economy situation after all.
Gold is indeed traditionally thought of as a safe haven during economic uncertainty. Many analysts were confused as to why the precious metal didn’t react to the Greece bailout.
Our view was that investors were simply holding back to see what would happen. This has proved right.
I think what we are now seeing is investors looking to gold again because of the global economy seeming to be unstable. There’s been the rapidly slowing down of China’s economy, low oil prices, and the US interest rate rise in December.
3) Aren’t all the major banks getting rid of their gold?
No, this is not case. Since 2010, central banks in Russia and China have been buying gold.
This is in part because of uncertainty over the future of the international monetary systems. The banks have a need to diversify reserves.
And Germany is accelerating its programme to bring its gold back to the country. The Bundesbank- Germany’s central bank – has moved 210 tonnes of gold into its vaults.
4) Do I need to be rich to own gold?
This is a very common misconception. Gold can be purchased to suit all kinds of different budgets. You can check live gold prices here.
One of our most popular purchases are Sovereigns which can be bought for around £200 (price January 2016). Our customers come from a wide range of backgrounds.
5) Can I use gold in my pension?
Yes, if it is part of your Self Investment Pension Portfolio (SIPPS). SIPPs were introduced a number of years ago. SIPPs allow investors to put in ‘one pot’ different types of investments. Money is paid in before income tax is taken off. You can find out more about SIPPs here.
6) Gold seems complicated to buy!
It can seem bewildering to the first time investor. For a start, there’s knowing who to trust particularly when there are so many ‘so called’ dealers out there. We’re one of the oldest bullion houses in the UK, trading for more than 30 years.
Gold Investments never uses aggressive sales tactics – there’s absolutely no pressure. That’s probably why many of our original clients have been with us for so long. We’re trusted and well respected in the field.
Our website is really easy to buy gold online from and is totally secure. And if you would like to speak to a real person, we are always here. We’re very happy to field any questions and to pass on our expert knowledge over a cup of tea or coffee. We can also be reached on the telephone if customers prefer or by email. All our gold is 99.99 (% purity).
7) Do you offer secure storage?
Yes we do. We can store gold in our bullion vaults which are at the London Silver Vaults on Chancery Lane, London. The vaults are protected around the clock.
If you are interested in chatting about gold investing options generally, please contact Oliver and the team on:
020 7283 7752
Gold Investments Limited
88 Gracechurch Street
London EC3V 0DN
Image from stockphotos at freedigitaphotos.net and Mike Peel (www.mikepeel.net)