Are you unfamiliar with the world of gold bullion? Maybe a friend or family member suggested it, or you read about it on the internet but aren’t entirely sure what gold bullion is. Let us explain.
Gold bullion is a monetary asset that differentiates it from gold jewellery. Gold coins are highly sought-after by collectors and investors and are a good way to diversify your investment portfolio. Gold bars are also a form of gold bullion that’s very popular, especially ones that carry exotic markings of long-defunct governments, such as the Russian Tsar Empire.
At its simplest level, however, bullion is an object that derives its value from what it is – the best-known, most widely coveted and accepted of the precious metals – gold.
Bullion in any form is considered a form of currency. While you can’t use it to pay for your shopping, and a central bank or national treasury does not issue it, it’s still a currency.
What’s Gold Bullion Worth?
To borrow a popular phrase, gold bullion is often worth its weight in gold. The International Monetary Fund keeps reserves containing billions of dollars’ worth of gold bullion. Virtually all central banks hold gold reserves, such as the Bank of England, which holds billions worth of gold bullion on behalf of His Majesty’s Treasury.
Due to the stock market volatility, many investors are now padding out their investment portfolios with gold bullion. Gold is sold in bullion to ensure its weight and purity. While gold bullion’s value fluctuates, it is not susceptible to the same factors that cause economic downturns. It maintains its value well and, because of this, is seen as a safety net during financial hardship.
But how much is gold bullion worth? As of September 2022, a one-ounce bar of 99.9 per cent pure investment-grade gold is worth $1,746.40 (£1,510.64). Of course, bullion’s worth fluctuates with the price of gold, but as stated above, gold bullion generally maintains its value far better than paper-based currencies.
Investors usually buy gold when the price is low, then sell when the price increases, often trying to predict its apex.
Does Gold Bullion Increase in Value?
Absolutely! The value of gold bullion, London customers, like everything else, rises and falls depending on what’s happening in the world. The difference is that gold has a negative or weak correlation with financial markets, especially the stock market and FTSE. This means that gold increases when economic downturns occur, and paper-based currencies and physical assets fall in value.
This is because demand increases as investors lose confidence in banks and higher-risk investments. During stable times when inflation is low and financial markets are ticking along nicely, the value of gold decreases, presenting a great opportunity to buy.
One prime example is the global economic crash that occurred in 2008. In the years that followed the collapse of Lehman Brothers in September 2008, the price of gold shot up by 157%. As time has gone by, the value has gradually come down as markets have settled and become more stable.
It is entirely possible to predict these changes in the value of gold bullion by reviewing historical movements of gold prices and accounting for the state of the global geopolitical and economic climate. This information can be used to discern the best time to buy gold and when the right time might be to sell.
Is Gold Bullion a Good Investment?
Gold bullion is an excellent investment for several reasons:
- Safe Haven
- No Third-Party Liability
- Protection Against Uncertainty
It has been shown time and time again that gold is an excellent hedge against major factors that impact investment portfolios. These factors include inflation, deflation, macroeconomic, geopolitical, systemic, and monetary risk.
Gold provides a safe haven as a borderless currency, not limited by the flat monetary system we use daily. Central banks don’t control gold’s demand, supply, or price, giving gold a unique position. Gold’s indestructible quality and finite supply mean it holds its value for long periods, making it far more reliable than paper-based currencies and physical assets.
When you own physical gold bullion, you own it – there are no third parties. The gold is yours to do with as you see fit, in contrast to stocks and shares, which are at the mercy of how external parties act.
Precious metals are a great way to diversify your portfolio, providing financial support in times of economic hardship. That’s because they have a negative or weak correlation to price movements. Their inclusion provides you with a balanced portfolio, preparing you for short- and long-term events.
The gold market is very liquid, making it the easier of the markets to buy and sell on. This liquidity spans globally with the price set by the market according to demand and supply. This makes it straightforward to buy and sell compared to other physical assets that take far longer.
Lastly, we live in uncertain times where our money is at constant risk. The situation is likely to worsen, so it’s comforting to have the added protection gold provides, especially in these uncertain times.
Where to Buy Gold Bullion?
If you’re looking to buy gold bullion, it can be purchased from any reputable gold bullion dealers. Here at Gold Investments, we’re one such company with more than 40 years of experience supplying gold bullion and other precious metals. Our team comprises members with more than half a century of experience in the gold business, and we have loyal customers who’ve trusted us with their gold investments since we started.
We provide customers with tailored solutions and bespoke advice, ensuring they purchase the right precious metals to fit their investment portfolio. And we offer affordable gold storage in our secure London Silver Vaults, providing you with peace of mind and a quick way to react to the ever-changing market.
Check Out Our Gold Investment Options Today!
Come to Gold Investments if you’re looking to buy gold bars and coins. We take immense pride in providing our customers with a level of service that surpasses the competition. With live market prices, you’ll always know when to buy and sell. And with secure storage options available, your acquisitions will remain protected and easily accessible to you.
To learn more about our excellent range of precious metals, pick up the phone and call Gold Investments on 020 7283 7752. You can also get in touch by completing our online contact form or emailing [email protected].