It was way back in the 1980s when the prices of gold skyrocketed to the current record highs. Shortly after, gold prices in the UK slumped into a corrective stage of the market in which the overvalued gold returns to a normal state. Since the 1980s, the value of gold has never reached the same heights.
It was back in 2008, shortly after the start of the housing recession in the United States that people began looking to invest in gold again. Since 2008, there has been an increase of gold prices in the UK and around the world by as much as 142%. Last year alone, more than 500 times of gold has been purchased and sold worldwide.
Many investors and speculators are now insisting that the gold market is about to return to its third stage; the same stage which led to the all-time record highs back in the 1980’s. Many people insist that now is the time to invest in gold while it is still affordable. There is a belief that the value of gold will skyrocket to well over 2500 dollars by the peak of the third stage. This equates to as much as 15 percent return on investment for many investors who purchase within the next few months.
In Great Britain, just like the rest the world gold prices are expected to increase exponentially over the next year. By this time next year, the gold price in the UK will most likely have peaked out. Those who have failed to sell before this peak occurs will end up losing some if not all of their investment.
What Is The Gold Price UK Right Now?
Some speculators insist that the steady increase in the value of gold prices in the UK are as a result of the 1999 Washington Agreement. This agreement was established shortly after the Treasury Department in the United Kingdom announced that it was going to sell 50 percent of its gold reserves via auctions through the Bank of England. At the same time, nations including Austria, the Netherlands, as well as Switzerland were also discussing the potential of selling off a large portion of their reserves also.
The Washington Agreement was established to help stabilize the gold market which would have been destroyed had the nations of the world on loaded vast majority of their gold reserves. This agreement reduces the amount of gold being sold to the central banks around the world up until 2009 when the agreement was re-signed. As a result of the re-signing in 2009, all central banks worldwide stopped selling gold altogether and instead started to buy it.
Supply versus demand states that when there is a limited supply in a large demand the value will increase. Because the central banks which have the most buying power has stopped selling and started purchasing gold, combined with the high demand of private investors, the gold price in the UK will skyrocket.
But it is important to remember, that the Washington Agreement did not create the upward trend any more than it created the precious metals. It is an inevitable fact that the value of gold was bound to increase steadily over the next few years. The agreement merely sped up the process substantially.
Further, by speeding up the process in a manner that it has, the agreement has made investment in gold a more lucrative prospect for many small time investors in the UK as well as around the world. Just remember, that now is the time to buy not to sell.
Right now the gold price in UK is not at its highest level, it will increase dramatically throughout the year. If you have not already started investing in gold, now is the time to purchase as much as you can at the lowest prices possible. Towards the end of the year, as the value starts to reach the 2500 dollar mark, more and more people will rush in to try to buy gold at the last minute; and that will be the best time to sell.
Just remember to plan ahead accordingly and make your decisions wisely because there are still inherent risks associated with investing in precious metals.Dan Craig