With only a finate supply of gold on the market, the supply and demand dynamic means that gold is at very little risk of devaluation.
(PRWEB UK) 28 December 2012
Gold prices are enjoying record highs and have quintupled in the last 10 years from $317 to around $1,734. With gold prices expected to continue to rise over the next few months, influenced by further measures from central banks to combat the economic downturn, more investors are considering turning to physical gold.
Gold investment has a number of benefits attached to it, Physical Gold explains:
- Gold is an age old form of savings and investment. It is indestructible, relatively scarce and can’t be manufactured so is at very little risk of losing its value. This makes it a refreshingly simple form of investment compared to many others out there.
- With only a finate supply of gold on the market, the supply and demand dynamic means that gold is at very little risk of devaluation. Higher demand pushes prices higher as production can’t keep up. Low gold prices usually push demand higher, so will ultimately fuel prices once again.
- Gold provides good balance to a portfolio and is considered a safe product to turn to during times of economic downturn. Gold in its’ physical form will reduce the overall volatility of a portfolio. Investment experts recommended that around 20% of holdings should be in gold during uncertain economic times.
- There is no VAT on investment gold and no capital gains tax on UK Sovereign and Britannia coins as they are deemed legal tender. Qualifying pension gold is also entitled to up to 40% tax relief.
Physical Gold Ltd is a leading UK gold dealer, helping investors diversify their portfolios with innovative investment solutions. Renowned for their ground breaking products such as the Sipp gold and Gold Accumulation Account, the firm specialise in providing customers with tailored assistance in sourcing the best gold for their personal requirements. Based in London, the team are BNTA accredited and have an unrivalled knowledge of the gold market as well as an exceptional understanding of the general financial markets.