12th October 2016
By Joshua Saul, Director of the Pure Gold Company
2016 looks to be one of the most unpredictable years in modern memory. Political and economic dynamics, from the United States presidential election and its preliminary build-up, through to the announcement of the United Kingdom’s exit from the European Union via the Brexit vote, have had an impact on both the international stock exchange and the value of even the world’s strongest currencies.
While a number of us will be relieved to see a year of such highs and lows coming to a close, there is one thing many people are choosing to do today – secure their hard-won assets through investment in gold, a precious commodity with a reputed and well-regarded array of benefits.
Gold predates modern currency and was used to formulate the monetary system as it stands today. It was once the standard by which the value of all currencies was equated, and today holds robust value that rests outside the conventional banking system. Gold bullion, in particular, is a commodity that has an inverse relationship to many other economic assets- when they drop in value, safe bets like gold bullion often rise in value as investors look for safe havens. As such it stands to reason that gold is an important investment choice for a growing number of individuals.
Although it may seem like the worst is over, the true implications of dynamics such as Brexit are yet to be felt. The political move is one that has never before been made in history, and the uncertainty that is engendered by that process – although already felt at the time of the vote results’ announcement – will likely emerge again. Moreover, even without the Brexit vote, the UK’s national debt is three times what it was in 2008, despite rounds of austerity measures. The higher the government debt, the more the economy risks slowdown as confidence in government money falls.
Furthermore, Brussels has been given further pause by the notion of other countries opting to leave the EU in the wake of Brexit. Many of the potential leavers are economic power players in their own right, and their decision to leave – even as a suggestion, if not a reality – is enough to further wrinkle the fabric of European economic stability.
Overseas and beyond the scope of Brexit, other political events are creating unusually high levels of instability in the markets. The US election, always an event that creates ripples in the financial pond, is becoming more divisive by the day, with uncertainty over the post-election direction of US politics causing investors to consider their positions carefully. Several major banks are also suffering severe stress as a result of recent collapses like the failure of Deutsche Bank and the troubles suffered by Wells Fargo, with any collapse or failure affecting confidence in other banks in the same field. These failures directly affect the value and confidence of the stock market.
With such dynamics in play, there is little wonder that so many individuals are seeking solace in the safety that investment in physical gold provides.
Securing your future
Millions of us invest our efforts every day in working to ensure that we have a bedrock of stability to provide comfort and happiness to our loved ones and ourselves. It can be easy to feel uneasy in the face of the kinds of dynamics shaping world events today, which makes 2017 a year of trepidation as much as optimism.
Many of us are looking to gold as a long-term investment option that secures our wealth, although for some, the first-time feeling can create some nervousness. You want to be certain that you’re dealing with reputable sellers who are able to offer a tangible product with integrity and authenticity. When discussing your future, it’s vital that the utmost confidence is felt in your decision.
Fortunately, professional bullion organisations are keen to help you understand how to get started in physical gold investment, with processes that will help you appreciate how it secures your capital, as well as how to store the bullion you invest in. For those entering the world of gold investment for the first time, it’s advised to start small, so it’s a relief to know that, among leading bullion merchants, there is no pressure or obligation extended to any enquiries that are received. For many of us, that knowledge is a big relief that drastically lowers any previously perceived barriers of entry.
Enter 2017 with confidence
We have all done well to weather the numerous storms that 2016 has thrown our way, and even with those hurdles, for many of us it’s been a good year, rich in success and prosperity. Safeguarding those accomplishments against what’s to come is very much on the minds of many of us, however, and with the Central European Bank already revising its 2017 and 2018 economic forecasts in a downward trend in response to Brexit, who knows how further developments will affect the months ahead?
Experts agree that the coming years will prove quite a mixture. Investment in gold will, as it always has, remain an attractive option for those wishing to provide a counterbalance to this instability. Information on how to best take advantage of that security and ensure yourself peace of mind can be found here.