Why are People Investing in Gold for their SIPPs?

gold-295936_960_720

The Pure Gold Company

5/11/2016

It can’t be denied that we find ourselves in an uncertain and potentially difficult period of history. The complexity and violence in the Middle East rages on; the US Presidential election has alternately engrossed and repulsed the entire world; the UK continues to be divided by the Brexit referendum and its ongoing consequences. In the face of so much doubt, it’s easy to see why people are looking to secure their assets for the future.

One consequence of this has been the rise in popularity of gold in SIPPs. Unsure of what SIPPs are, and why gold is a sensible option to incorporate into them? Read on.

What Are SIPPs?

Although self-invested personal pensions (SIPPs) have been around for over 20 years, the government passed new legislation in 2006 which simplified the criteria regulating them. In essence, this has allowed UK citizens to take control of their pension with greater freedom in diversifying their own nest eggs like never before.

When they were first introduced in 1990, SIPPs were a niche product that was the territory of business-oriented investors with their fingers continually on the market pulse. Over the years, however, the accessibility of SIPPs has increased to such a degree that they’re now a mainstream commodity which many pension owners take advantage of in order to maximise control over their own savings. It’s estimated that today in Britain, more than half a million people leverage SIPPs to their advantage.

The Golden Nest Egg

As well as SIPPs growing in popularity, recent years have seen an accompanying rise in the amount of people investing in gold as part of their pension plan, too. The relaxed rules brought about by the new legislation allowed gold to be included in SIPPs and even offered generous tax relief of up to 45%, providing the gold met three criteria:

  • It must be kept in bar form
  • It must be of at least 99.5% purity
  • It must be stored in a secure environment, such as a bank vault

Fortunately, there are reputable gold trading companies which can provide pension services with gold that meets all three of the above criteria. As a stable commodity that does not depreciate in value with the whims of the world economy, gold is a sensible choice for those looking to shore up their pensions and take care of their own assets.

This becomes even more applicable as the years roll by; as you approach retirement, less risky investments become more desirable as they provide increased security and stability. There’s nothing worse than saving up your whole life only to have the financial rug pulled from under you just as you prepare to purchase an annuity – investment in gold precludes this possibility.

Why Gold Is a Good SSIP Option in 2016

Incorporating an investment in gold into your SIPP has never been more relevant than it is now. The global changes mentioned in the opening paragraph of this article have affected the economy – both on a national and international scale – and will continue to do so for the foreseeable future. When you consider that the UK national debt is currently 300% higher than it was just eight years ago, and that the fallout from Brexit is predicted to have an ongoing effect on the British marketplace, it makes sense to seek out something to cling to in these choppy waters. Fortunately, it’s possible to circumnavigate this instability by investing in a commodity that won’t be dragged down.

There’s a reason that gold has been used as legal tender for over 3,000 years and that it will outlast even the strongest of today’s currencies; in fact, there are a whole host of reasons. In addition to being a timeless material that appreciates in value in times of austerity and doubt, it’s also a superb way to achieve peace of mind about you and your family’s continued well being. That’s never been more true than it is in 2016.

gold-295936_960_720

"It’s estimated that today in Britain, more than half a million people leverage SIPPs to their advantage."

< Back to Uncategorised

Related entries

  • What Does the Fluctuating Pound Mean for Gold Investment?

    The Pure Gold Company 11/11/2016 In the global marketplace there are few investment certainties. With sterling reaching record lows during October, fears of the effect of Brexit on the UK economy and even more potential problems as a result of the forthcoming US election, investors are having a hard time looking for safe and intelligent...Read more >
  • What Might 2017 Bring for People Who Have Investments in Gold?

    22/11/16 By Josh Saul 2016 has been a year with surprises in abundance, with a variety of world events with complex effects on economies, currencies and stock markets. From the United Kingdom’s decision to leave the European Union via Brexit, to India’s reform of high-value Rupee banknote circulation, the election of new US President Donald...Read more >