If you're an investor in the UK, you should be paying attention to the gold market right now. With the current economic and political uncertainties, it's a good time to start thinking about diversifying your portfolio with gold. In this guide, we will discuss why now is the perfect time to buy gold in the UK and how you can get started.
- Economic and Political Uncertainty
One of the main reasons why it's a good time to buy gold in the UK is because of economic and political uncertainties. With Brexit on the horizon and the current global economic instability, investors are looking for ways to protect their portfolios. Gold is viewed as a safe haven in times of economic instability, and it has been used as a hedge against inflation and currency fluctuations for centuries.
- Increasing Demand
Another reason why now is the perfect time to buy gold UK is that demand for gold is increasing. The pandemic has created a situation where investors are looking for safe assets, and gold fits the bill. According to the World Gold Council, in the first quarter of 2021, gold demand was up 36% year-over-year, with investment demand up 56% year-over-year. With this increasing demand, it's likely that gold prices will continue to rise.
- Diversification Benefits
Gold has an important role to play in portfolio diversification. Diversification is essential for investors as it helps to reduce portfolio risk. Gold has a low correlation to other financial assets, such as stocks and bonds, which means that when other asset classes are falling, gold can potentially rise. By adding gold to your portfolio, you can balance out your risk, which can be particularly useful during times of economic and political uncertainty.
- Easy Access to Gold
Buying gold has never been easier. With the rise of online brokers and trading platforms, you can easily invest in gold from the comfort of your own home. In the UK, there are several options available to you for buying gold, including buying physical gold, investing in gold ETFs, or buying gold mining stocks. Each option has its own pros and cons, so it's important to do your research before you invest.
- Potential for Long-term Growth
Gold has a long-term track record of growth. While there may be short-term fluctuations in price, over the long-term, gold has gone up in value. In fact, over the past 20 years, gold has had an annualized return of approximately 8%. While there's no guarantee that gold will continue to perform as well in the future, it's certainly worth considering adding to your portfolio as a long-term investment.
Conclusion:
In conclusion, now is the perfect time to buy gold in the UK. With economic and political uncertainties on the rise, increasing demand for gold, diversification benefits, easy access to gold bullion through online platforms like RPS Bullion, and potential for long-term growth, it's an ideal asset class to add to your portfolio right now. Of course, investing always carries risk, so be sure to do your research before you invest and consider seeking professional advice if necessary.
