Gold Prices Jump 22% To Hit Two-Year High
It’s an uncertain time for our wallets, thanks to a little thing called the EU Referendum; however, gold plating services with excess reserves of gold may just have seen their stock rise. The last week has shown that you can wake up one day and your money can be worth less than it was the day before, so those who are looking to protect the value of their investments have been buying up gold.
According to The Guardian, gold prices rose by eight per cent in global terms after the shock ‘Brexit’ with investors looked for an asset with lower risk attached than global currency right now, however taking into account the falling pound, that equalled 22 per cent for us Sterling users. But why do people choose to invest in gold?
Marie Owens Thomsen, chief economist at Indosuez Wealth Management, put it in perfect terms: “It’s a natural safe haven for everybody.” Sometimes also called a ‘crisis commodity’, gold is a more secure investment because it better holds its value, as it has done throughout the ages.
Investopedia notes that it’s an excellent way to hedge your bets against inflation and deflation, and gold can be an important part of a diversified investment portfolio, which protects you against the ebb and flow of the world’s financial tides.
If you’re not in the right place to be hoarding bars of gold bullion however, there are just one thing you might need to know. In the short term, the price of gold will be more expensive, which might affect any gold-related products you wish to buy.