On Wednesday morning, gold hit a new all-time record high…
On Wednesday morning, gold hit a new all-time record high of £3000 ($4000) as a wider range of investors see the appeal of the precious metal in an investment portfolio.
For a while now, there has been a feeling of worry amongst households and gold has been the best way to express concern over high inflation, government debt, and geopolitical uncertainty.
At a broader level, the de-dollarisation story gathers momentum. JPMorgan analysts call it the “debasement trade” citing investments that protect against downfalls in the dollar. Central banks have been de-dollarising and de-risking from the US, by buying gold, since Russia’s invasion of Ukraine in 2022.
Inflation rates are still high but central banks have been cutting rates at all time high levels. Billionaire investor Ray Dalio said that 2025 is similar to the early 1970s when inflation, high government spending and debt forced investors to lose confidence in paper money. Combine this with president Trump eroding faith and confidence in US financial markets, gold is increasingly being recognised as the one true safe haven asset and the one true store of value.
Assets priced in gold are in fact negative. The S&P 500 – which has had a strong and resilient run in the face of tariffs – is down 13 per cent when priced in gold. The same is true with house prices.
I dare not think about the real value of cash when priced in gold (it isn’t good).
Perhaps the head of commodities research at Société Générale said it best. Central banks have been buying gold irrespective of price, and there is nothing special about the £3000 mark. The path continues upward and there is no sharp return to normalcy.
Whatever “normal” means now.
Need Assistance? Our expert team is ready to answer any questions you may
have about investing in gold and silver.
Give us a call at 0207 117 2889 or book an appointment to see us in person in our London Showroom.
Read More
“You should think of gold as being a fundamental money that you should own at least some of. Most investors don’t own any.” Says Ray Dalio, the billionaire founder of Bridgewater Associates. Ray earned a living seeking an uncorrelated return across different asset classes and it led to his hedge
Read More
The Best Gold Investors Do These 5 Things So, here we are. Gold at £3000. Fancy seeing you here. Gold is up, uncertainty is up and government debt is up. In the meantime, the real purchasing power of cash and paper money is getting lower and lower as interest rates
Read More
Last week, the investment bank Goldman Sachs issued a note predicting gold could hit $5000 (£3700) if the Federal Reserve bank continued to be undermined and if 1% of privately-owned Treasuries moved to gold. How, then, realistic is this price target? In the note, Goldman analysts wrote that “gold remains
Read More
Gold Hits Yet Another High. Can It Go Higher? On Tuesday, gold hit a new record high surpassing £2,600 a troy ounce for the first time ever. Happy September everyone. Perhaps the most interesting thing about the gold price reaching yet another high, is that everyone who buys now is
[email protected]
020 7117 2889
BH International Ltd – Company number: 14315961
111 Baker Street, Marylebone, London, W1U 6SG
