Gold Market Information

Written by Ian Davis - Bullion Manager • Last updated 19 Aug 2019

Gold has been ingrained in culture and wealth since its discovery back in time immemorial. Used throughout the world as a base metal for coins, it is also a commodity and used as jewellery. Its value has been relatively stable across history and is often seen as a safe haven for investors looking to protect their wealth against inflation and failing economies. Read our blog on why you should invest in physical gold and silver here and keep up to date with market news and events which are responsible for driving gold prices.

Gold Demand & Supply

Demand Factors

Gold is predominantly used in 5 major areas which are jewellery, investment, technology (notably electronics) and within central banks so experiences both industrial and investment demand. Since about 2008 the demand for gold has been increasing and if you view our live price charts you will recognise this by observing the rise into 2011 and now in 2019 to record all time gold prices. Many people are increasingly worried about the state of the financial system watching central banks buy record amounts of gold whilst injecting cash via bond buying programs, both of which could be pre-recession behaviour. This increases both institutional and retail investment demand and has done for years. Jewellery demand is often inversely related to gold price as rising prices can slow growth for example during 2016 - a result of weak economic performance and policy changes in India. 

The World Gold Council provide good insight into how the market is evolving and how price and you can subscribe to their mailing list to receive updates. The take home message is that as we write this (August 2019) the price of gold is currently at record levels breaking £1240 an ounce on the back of global tension and political instability. There appears to be no short supply of political and economic instability in the future which could only benefit the price of gold further. 

Gold Prices in Turbulent Times

Gold price is often a product of economic and political news and events. You can view the live price of gold here. With the events of Brexit and Donald Trump's presidency gold price has remained high and we can see no end in sight to political upheavals! If you are worried about the risks of wealth linked to a local economy, you should consider investing in gold which has a more global value and is less affected by local economic downturns i.e. it is likely to hold its value even during financial ruin. With the plummeting value of the pound and the EU facing a crisis, gold has become an important hedge against currency devaluations.

Further Reading

You may wish to view all of our articles on our gold guide