Wealth held with banks, other large financial institutions or the stock market, is no longer considered either as safe or as prudent as it once was. Consequently, we’ve seen an increasing demand for the precious metals market over recent years. We continue to meet the varying needs of clients wanting to flexibly hold a proportion of their wealth in this ancient and trusted form.

More and more people are returning to the wisdom of their grandparents when owning Gold and Silver was considered perfectly normal. Why is this, and how has the Gold value increased in 50 years?

50 Year Gold Price Overview

  1. In 1969, you could buy an ounce of gold for an average of £17.20
  2. In 2011, gold reached a historic high of around £1100 but has since pulled back
  3. From 2012 onwards, approximately 80% of Bleyer’s client were new to the market
  4. In 2015, an ounce of Gold averaged £780.00
  5. In 2019, the gold price has started above £1000 an ounce

Inflation Beater

We’re told that UK inflation is again on the rise. Would investing in Gold back in 1969 have beaten inflation over the last 50 years? If we were to adjust the above price increases for inflation, this is what we’d actually get:

  • In 1969 you could buy an ounce of gold for £17.20
  • Adjusted for inflation, £17.20 would now be worth £281.08 in 2019
  • So, the current Gold price of £1000 has beaten inflation 4.5 times over

Graph showing the increase in gold prices over the last 50 years (Source: LBMA)

Why Has The Price of Gold Risen?

There are many factors which affect market prices. The factors which often affect the price of Gold generally fall into the following two categories.

Factors that are universal to most markets:

  1. Supply and demand
  2. Availability
  3. Historical price ratios to other products (e.g. is the price high or low compared to its historical norm)

Issues affecting Gold and Silver price more unique than general financial principles:

  1. Fast or slow currency collapses, including quantitative easing
  2. Regional or international wars
  3. Collapse in property prices
  4. Interest rates
  5. Financial developments of other countries i.e. Some countries are much more significant in relation to Gold and Silver because they themselves hold more.

Read ‘Internal Precious Metal Factors That Influence Market Sentiment’ here.

Selection of Global gold bullion bars

Stay Ahead of the Crowd

For numerous reasons, we live in times when uncertainty and change seem present. All of the above five factors are currently at play. Last week, for example, as the news Brexit immerges, economic data is revealed and trade tensions around the world increases, the price of Gold also rose to a new current year high of £1014.44.

The majority of people buy Gold after the price has noticeably begun to rise as reported in the mainstream news. This means unfortunately many people buy when the price is high, which heavily reduces much of their profit over the long run.

We would like to encourage our readership to think of the monetary advantages to buying when the price is lower – or resting before its next rise – to venture into the financial future ahead of the crowd.

We all like to be onto a good thing before other people around us. With a small amount of research and a quick call to Bleyer, we hope to encourage you to see the advantage of buying low, holding long, beating inflation and protecting your store of wealth in Gold.

Black and white image of crowd watching a stage

If you have questions about your first steps into owning your own Gold and Silver, then call one of the team if you have further questions. They will be able to chat through topics such as:

Start Owning Your Own Physical Gold and Silver

  • How buying Physical Gold and Silver can protect my wealth?
  • What forms of precious metals should I buy?
  • How much will I get when I sell my Gold and Silver?
  • What TAX savings can I make when buying or selling Gold and Silver?
  • How can I safely store my Gold and Silver?

Call Bleyer on 01769 618618 to find out more, browse Bleyer’s website, email sales@bleyer.co.uk and one of the team will call you back at a time which is convenient to you.

Gold and Silver are two of the most traditional safe havens known to the financially savy. Subscribe to Bleyer’s weekly Newsletter for updates on articles, news and special offers all designed to help you feel more comfortable and informed in the world of owning your very own Physical Gold and Silver bars and coins.

500g gold Umicore bars

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