Not quite everyone is talking about gold at the moment but they soon will be, gold is set to continue in its bull run, the gold price has reached a recent high of over £1200 ($1900). We firmly believe that the price, barring a few corrections along the way could reach £3000 ($5000) and beyond. Check the gold price daily here to keep track of the value of your gold investments and to react to buying or selling opportunities.
If currencies were pegged to the price of gold as they were prior to 1971 we could now be looking at a price of £12,500 ($20,000) per ounce. It has been calculated that there is over £23,000 in circulation for every ounce of gold at the Bank of England so if some sort of Gold Standard were put in place your gold would appear cheap at current levels.
Banknotes have always been just an iou and you could at one time in the past redeem them for the gold that they were based on (although as time went on the Bank of England rarely actually stored enough gold to pay everyone back it ranged from about 25% to 50%) but at least the currency represented a real value.
As currencies loose their value on a daily basis and the money in your pocket buys you less and less, particularly with governments now printing money as if it were going out of fashion (which it may well be!!!) it makes sense to hold on to your gold.
Other drivers to the continual rise in the gold price are the developing nations of India and China, demand is high as more and more people have money to spend on non essential items, keeping the demand for gold high. Record prices are being paid for gold bullion coins and collectable gold coins. India has always had high demand for gold jewellery and with more people joining what you could call the middle classes this is set to continue to rise.
Physical gold in the form of bullion bars or coins is the preferred way to hold gold, this way you are not worried about the day to day fluctuations in the gold price. You could invest in a gold fund such as an ETF which will keep the physical gold for you and you can sell it or buy it online when you want without worrying about storage. Trading gold through an online broker such as a spread betting company is an option, this is a way to bet on the price of gold often over a shorter period of time. This form of trading gold, whilst it can be exciting, can have risks therefore it is advisable to practice (with a practice account) before committing real money.
Buying gold mining stocks can be a good way to gain exposure to the rising gold Price. Many of the junior mining stocks have lagged the gold price and could be set to rise as the price of gold increases, when gold fever starts to take hold it could be like the dotcom bubble when everyone was talking about and tipping tech stocks the difference being that the price of these stocks would be representative of real value in the form of gold, whereas many of the dotcom stocks had no real assets or prospect of producing earnings anywhere near their inflated P/E ratios.