Sharps Pixley, a member of the Degussa Group, Europe’s leading independent precious metals group, has launched a new initiative to educate investors on the benefits of investing in gold as part of a diversified portfolio.
According to Giles Maber, Director of Sales at Sharps Pixley, “Gold prices have reached a new high in July due to geopolitical risks and the US monetary policy outlook. Investors are now including 10-15 percent exposure to gold in their asset allocation models, and demand for safe havens is expected to increase as the US presidential election approaches.”
The “Invest in the Future Today with Sharps Pixley Gold” campaign aims to inform retail investors about the advantages and disadvantages of investing in gold, a traditional “safe haven” asset. The price of gold has risen by nearly 20% this year and continues to reach record highs, signaling the potential for a bullish market. According to Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, “we may be in the early stages of a bull market that is breaking out to new highs.”
This surge in gold prices can be attributed to various factors such as geopolitical tensions, volatile financial markets, and uncertain economic conditions, including high inflation and rising interest rates. Nicholas Snowdon, Head of Metals Research at Goldman Sachs, predicts that “even if interest rates remain high, we expect the gold price to continue to gain upward momentum.”
Amidst these unsettling headlines and economic uncertainties, many individuals have turned to alternative ways to safeguard their assets. Even central banks have responded by purchasing record amounts of gold in 2022 and 2023, resulting in all-time high prices. According to the 2024 Central Bank Gold Reserves (CBGR) survey conducted by the World Gold Council, 29% of central bank respondents plan to increase their gold reserves in the next twelve months.
Investment in gold has proven to be profitable over the medium to long-term, with the price of gold increasing from $300 per ounce in the late 1990s to $2,400 per ounce today – an eight-fold increase. This demonstrates the attractiveness of gold as a long-term investment, especially for those thinking about future generations, securing education, or planning for retirement.
For first-time investors or those looking to buy-and-hold, gold offers the potential for long-term returns, value preservation, and portfolio diversification benefits – as noted by the Financial Times in June. However, for those seeking immediate returns, investing in gold may require a higher willingness to take risks. The best time to invest in gold is when financial resources allow and are not expected to be needed in the short term.
For more information about investing in gold, please visit www.sharpspixley.com or contact Sharps Pixley via email at info@sharpspixley.com or phone at +44(0) 207 871 0532.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.