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Investing

Political unrest results in gold rush

Political unrest results in gold rush

Not a day goes by without us waking up to stories of further political unrest – from air strikes in Syria, to US talks with Kim Jong-un on the North Korea crisis and the prospect of a US-China trade war.

For investors and global markets, all this political uncertainty leads to one thing – uncertainty in the markets and stock prices and investments ebbing and flowing constantly. However, the one investment that has remained robust through these political times is gold and leading gold and precious metal bullion seller, www.coininvest.com has seen that investors are coming back and back to it as a safe haven for future investments.

The appeal of gold has been growing for months, if not years. Following the Bitcoin ride of a few months ago, many investors are looking for tangible assets to put their money into in the long term.

Gold has always been a safer investment option having not been influenced by political unrest or currency volatility. In fact, the price of gold rises when Sterling decreases, when inflation is rising and interest rates falling. Daniel Marburger, a director of www.coininvest.com comments that the recent furore resulting from President Trump’s threats to Syria have in fact led to the gold price reaching new highs in the US with increase in sales of 25% in April compared to March and a 4 week high of £ 956.00 an ounce up £ 20 an ounce March lows. This is also reflected in the year on year increase in sales that Coininvest say have been in the region of 25% up driven by the decline in the value of cryptocurrencies and political tensions. This fluctuation shows the sensitivity of investors and the movement towards a more robust investment.

There is also the advantage for UK residents with purchasing gold coins such as Britannia or Sovereign Gold that as they are UK legal tender they are exempt from capital gains tax and gold Britannia and Sovereign are also VAT free.

www.coininvest.com claims that the top three gold products British investors are turning
their Bitcoins into include:

1 oz Gold Britannia (£993)
1 oz Krugerrand (£977)
100 Gold Bar (£3,134)

For the UK market, there are other factors at play. Many continue to be uncertain about what will happen to the UK post its exit from the European Union and other traditional forms of long term investment such as property and stocks feel less secure than gold.

Limited in quantity, the gold price will always rise when supply passes demand, gold is easy to trade and can be decentralised to store. However, unlike other investments, gold has the advantage of not needing passwords that can be lost and the volatility is much lower meaning a higher chance of sustainable growth.

Daniel Marburger, www.coininvest.com comments, “Gold has stood the test of time. It is no surprise that in times of political unrest, we go back to what we know and trust and our sales figures reflect this. Gold coin sales are no flash in the pan, they are the best option for those who want a secure and safe haven for their investments.”

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