After five years of low interest rates, UK savers have taken something of a battering. Even with the emerging economy, investing in bank-owned policies still yield little return and the equities market is unpredictable and under threat of collapse.
A better investment alternative at the moment is to add 100 gram gold bullion bars to your pension package. With gold prices looking attractive today and likely to sink even lower during the course of 2014, this is a prime opportunity for investors to make some very healthy profits which you can enjoy in retirement.
And the likelihood of a giant spike in gold prices is practically inevitable.
Gold v currency
Currency and precious metals work against one another. When currency is in the ascendency, the demand for gold is lower thus prices fall. During times of economic crisis when currency is weak, traders use gold has a hedge against riskier investment thus prices will typically improve.
Small time investors looking to give their pension fund a boost will have more financial security investing in gold and silver rather than equities. The reason being is that gold is a safe haven investment and will also go up in prices whereas there is no guarantee you will get much of a return on equities – especially if the market collapses.
Gold bullion bars also have the distinct advantage that they can be held in physical form which ensures you has something to sell in the event of an economic crisis. Buying equities or other paper stock could see you entire investment go up in smoke.
Precious metals are legal tender and are easy to sell even in physical form. Bullion bars are recognized all over the world as a high liquid commodity and can be exchanged for the current market value. At the time of writing gold is going for $1247 per troy ounce. If the credit ceiling collapses that price could more than double!
When you buy gold you also pay a premium. The lower the weight in gold bullion the higher the premium you have to pay. Therefore if you buy a 100 gram gold bullion bar you will have far less to pay in premiums than if you bought say ten individual pieces each weighing 10 grams. Furthermore, gold bullion bars are typically packaged in economic sleeves to keep shipping costs down.
Gold bullion bars available from coininvest.com contain 99.99% pure gold which will get better prices when the time comes for you to sell. You can also add gold to your pension fund and not be subject to capital gains tax or VAT when you come to sell.
The global economy may be showing signs of recovery right now, but it will not last forever. Eventually, balance sheets will appear with great big holes in them due to the phenomenal amount of credit that has been loaned out. Once the cracks show traders will start buying gold in huge quantities again and the prices will go up. If the debt ceiling collapses – which surely it has to – gold prices will rocket!