5 Good Reasons to Buy Gold

1.    History of holding value

Gold has consistently kept its value throughout the ages and is a way to pass on wealth from one generation to the next. It has been precious throughout history but wasn’t used as currency until around 643 BC. From an approximate value of $20.63 in 1929, to an approximate value of $1,302.50 in 2017, the value of gold has risen with the fall in the US dollar. As the dollar falls people turn to invest in the secure, physical gold; as shown between 1998 and 2008 where the price of gold nearly tripled.

2.    Inflation

Gold is a hedge against inflation in the long term because its value rises when the cost of living increases. Unlike money currency and stocks, gold prices soar during high inflation years hence it can serve as a relatively effective inflation hedge, usually accompanied by fears about the current state of the U.S. dollar and the global monetary system.

3.    Deflation

Deflation is a period in which prices decrease, business activity slows, and the economy is burdened by excessive debt. The global deflation, also known as the Great Depression of 1930s, saw the relative purchasing power of gold soar while other prices dropped significantly. Between 1929-33, overall prices fell 31%, yet gold’s purchasing power rose 44%; for even in a depression gold is still precious.

4.    Increasing Demand

An increase in wealth of emerging market economies boosts the demand for gold. Demand for gold has also grown among investors, as many are beginning to see commodities as an investment class into which funds should be allocated.

Synchronised global economic growth, shrinking central bank balance sheets, rising interest rates, insubstantial asset prices and market transparency are key trends which are ensuring gold is maintain its relevance as a strategic asset in 2018. 

5.   Decreasing Supply

Much of the supply of gold in the market since the 1990s has come from sales of gold bullion from the vaults of global central banks. This selling by global central banks slowed greatly in 2008. At the same time, production of new gold from mines had been declining since 2000. Bullion prices are set to climb as a result, due to a lack of exploration and the global industry’s lack of replacing the reserves it has been mining.

All of these factors play a large part in the reasons behind why you should invest in gold. Whether it be to protect your current economic status or to increase your wealth, gold is a valuable, precious element that’s future holds promise and prosperity. For more information on gold bullion visit https://www.bullionforless.co.uk

What are the Differences between the Gold Coins on the Market?

What are the Differences between the Gold Coins on the Market?

Buying gold coins has long been considered a smart thing to do with your money. It presents pretty much no risk, and there’s always the chance that you end up with something that could be very valuable in the years to come. Gold Coins are VAT FREE so will save you a large amount of money when making your investment as well.

There are plenty of gold coins on the market, and they have their differences. In this blog post, we’ll explain everything you need to know about the different coins available to buy:

Bullion Coins

Firstly, we have the most popular type of gold coin out there; the bullion coin. The value of these coins is determined by two different things. Firstly, the gold content. Secondly, a premium dictated by market conditions. In essence, the higher the gold content, the more expensive and valuable these coins will be. 

We sell this type of coin on our site, including the most popular forms such as the Sovereign, the Britannia, the Krugerrand and the Canadian Maple Leaf. It’s a popular investment choice for many people because these coins are far easier to store than bullion bars, and they present an excellent opportunity for profits in the future. An even greater benefit is that the Sovereign and Britannia coins are Capital Gains Tax Free in the UK, meaning you keep all of the profit that you make on these investments when you decide to sell.

Rare Coins (Numismatic)

Next, we have rare gold coins - often referred to as numismatic coins. These coins are not priced based on their gold content. Instead, it’s more about how rare they are. Other things that come into play involve the condition of the coin, the uniqueness of the design, and when it was minted. 

These are a good option for collectors but can be hard to make a profit on for investors that are looking to trade gold. The more popular a coin is, the more expensive it tends to be as well. The best thing to do if you have one of these coins is to hold onto it until it becomes super rare. 

Commemorative Coins

Finally, we have commemorative coins. These are special coins that are normally released during particular events to commemorate something. Their value is partially determined by the gold content along with how rare these coins are. 

This type of gold coin is probably the worst you can buy. While you’d assume that commemorative coins are rare, they can be far more common than some of the other rare gold coins out there. What’s more, it’s not likely that much gold will be used when making these coins, so their resale value is poor. 

In Summary

So, to sum up, you have three main types of gold coin on the market; bullion coins, numismatic, and commemorative. Bullion coins are valued mainly on the gold content in them, while numismatic ones are more to do with rarity, and commemorative is a combination of the two. 

If you’re looking to buy gold, then we believe bullion coins are your best bet. They present the best opportunity for investors that want to make money by trading gold, and are VAT Free and in the case of Sovereigns and Britannia coins are also Capital Gains Tax Free. We currently sell some of the most sought-after and popular gold coins on the market right now. So, visit www.bullionforless.co.uk to check out our gold coins.