With Coronavirus cases still increasing worldwide, simmering US-China tensions on the rise and slow global economic growth, gold prices continue to surge higher and higher.
Gold Prices at All-Time Highs
At the time of writing (6th August 2020), in the US, gold prices have reached an all-time high of $2,070.14 - the third time it broke price records in just two weeks. Days previously, in the early hours of Sunday 2nd August, gold rose to $1,985.72 after only just reaching $1,973.94 on the 28th July.
Gold's safe-haven appeal and increase in prices could also be felt in the UK, as prices rose by 6.86% in July, and reached their highest-ever price of £1,574.82 an ounce on 6th August.
Overall, up until the beginning of August, gold has increased by 26% since the start of 2020, and potentially, still has plenty of room to rally. The following chart shows the gold price increase (GBP):
Central banks across the world continue to flood their markets with newly-printed money and offer ridiculously-low interest rates to stimulate economies. These are unprecedented times, with unprecedented solutions.
This may keep inflation afloat in the short-term, but will it be sustainable in the long? Gold prices have always risen in times of uncertainty, and the graph below shows how gold prices (GBP) have increased since the start of 2019, perhaps an indicator of what is still to come:
The likelihood of a second stock market crash continues to be relatively high. Risks, such as the second wave of coronavirus, unemployment rising, and political uncertainty surrounding Brexit, could weigh on investor sentiment as this pandemic continues.
If you want to safeguard your finances against inflation and currency devaluation, physical precious metals are a great way of preserving the value of your finances. To discuss your options with our friendly Bleyer team, please call 01769 618618 or email us at [email protected] and start owning your own bullion today.