The purchase of gold bullion bars has increased nine-fold in the UK over the last five years. Following the global credit crunch in 2008, investors steered towards gold bullion bars as a safe haven asset and as a result can cash in a tidy profit. In March 2008, the price for an ounce of gold bullion was $1000. Today gold bullion bars are $1340 per ounce.
Cheaper gold prices have attracted customers to buy bullion bars. Since entering a bear market in the second quarter of 2013, gold prices have seen a steady rise, but prices are still well below the all-time high the precious metal enjoyed in September 2011 which is prompting investors to acquire the precious metal.
According to the World Gold Council there are more individual investors of gold today than at any other time in history – with UK residents accounting for almost half of the gold bullion purchased in Europe. Anybody who bought gold in 2008 will have made a profit of around 115 per cent.
Although the majority of gold in Europe is held in Swiss bank vaults, Barclays Bank took advantage of the UK´s growing interest in buying gold by building a secret vault somewhere near the M25. The vault which opened last September is the largest in Europe.
With the global economy still in a fragile state, gold sales have seen an unprecedented demand. The precious metal has been and will always be a safe investment and is mostly purchased to hedge against inflation or to be used in case of another financial crisis.
The reason for gold being a safe investment is because of the demand and the finite supply. All the gold in the world would fit into a box that is only 60ft square and analysts expect mining of the precious metal will cease in 2031. The demand for gold in the next 20 years or so will push prices up even higher.
Gold is also fairing well at the moment because of the emerging economies in India and China. Traditionally, India is the biggest consumer of gold in the world as it is usually given as a dowry for marrying couples. Gold prices always rise in September as it is wedding season in India and there are around 10 million weddings every year.
The middle-classes of China and Thailand have also taken a recent interest in gold and traders have increased the gold stocks to meet demand. Whilst prices are low, now is a good time to buy gold – and by doing so you could more than double your money over the next five years.
The easiest way to buy gold is online. To get the latest prices of gold bullion bars visit coininvest.com today and you could earn yourself a tidy profit.