With Interest rates at historically low levels and Governments around the world short of money, we have seen a steady rise in the price of gold over these last few years. Gold is storming up record highs with currencies on a global scale.
The current price of Gold from 20/06/2011 is currently at £1,078.77 per ounce and is set to go up to around £1500 per ounce over the next five years.
There are many factors relating to why Gold increases in value in times of hardship. Many people are still looking to invest and want to place assets in something that will gain value. At the moment banks and building society’s interest rates are very low, therefore Gold becomes very attractive to potential investors.
For the jewellery industry customers have also seen a rather high increase in the price of jewellery items such as wedding or engagement rings. But luxury metals such as gold is recyclable and refined across Europe. In fact Gold mines might be a thing of the past, as existing stocks of gold for the jewellery industry are reclaimed by more than 95%.
If you have any savings or investments that you feel could work harder for you, maybe Gold is the answer for a larger pension fund or retirement plan.
We will keep an eye on the price of gold over the next year and see if the price of Gold escalates as predicted.