Just a quick note today to react to the dramatic price increase in Gold (and to a lesser extent, Silver) in the past ten days or so.
Our favourite precious metals have recently shown exactly how they can react when the world is wary of what’s to come. The reasons for this are many, and I’m sure you don’t need me to repeat what they are as they are pretty obvious by now.
Earlier this month, gold had wandered down to around £900 per ounce and then suddenly, with the Gold price itself jumping and a dip in the GBP/USD, on Friday pm we were at £968. Silver had reacted similarly and had moved from £10.70 per ounce to £ 11.50 per ounce. Quite a jump.
This is no surprise to us, as we have spent a lifetime trying to explain to our new clients just how Gold and Silver react in times of trouble. They can hang around for quite a while without any significant movement but just as the rumours or the news heats up, pop! - the price in both can jump.
Uncertainty is the byword for the movement. Any uncertainty in world economics or world Geopolitical affairs and off they go. Investors put their faith in precious metals as they seek a ‘safe haven’.
Everyone runs to Gold and Silver in the end and, in respects of excuses to see a price rise, I cannot remember a time like this when there were so many reasons why the price of Gold and Silver would be on the way up.
This blog represents one person’s opinion only. Customers should conduct their own research and take advice before making an investment. We do not offer investment advice.