2024/25 Tax Year End: Gold Hits $3,000 Amid Record Demand in 2024

Key Takeaways

• Gold hits $3,000 in United States Dollars (USD)
• Gold demand hits new record in 2024
• Discussion points for the 2025 spring statement
• Trump's tariffs & plans for peace in Ukraine

Are You Prepared for the End of the Tax Year?

The fiscal year has almost concluded, and millions of savers in the United Kingdom are looking to maximise their investments, and ISA allowances before the new tax year on April 6th, 2025. A key event that all UK residents must be aware of is the Spring Statement announcement happening on 26th March 2025, which economists think will contain spending cuts and tax rises. 

The upcoming Spring Statement is keeping investors on red alert as Chancellor Rachel Reeves faces a £10 billion shortfall in public finances. Economists predict that one million more workers could pay the higher rate of tax. It is important that the UK Labour government strikes the right balance between economic growth and fiscal stability to avoid increasing borrowing costs.

What Changes Might We See in The Spring Statement?

It is predicted that Rachel Reeves will look to make significant cuts to government spending and address the UK's current economic situation. One of the concerning circulating rumours is that, in a possible major blow for UK savers, the UK Labour Government may cut the maximum amount you can deposit into your cash Individual Savings Accounts (ISAs) in the 2025-26 tax year from £20,000 to £4,000. It is suggested that by reducing the ISA cash allowance, UK residents would be encouraged to invest their savings in stocks and shares.

Reeves previously mentioned in her Autumn Budget speech that pensions would be placed within the Inheritance Tax (IHT) net. Currently, UK residents can give away up to £3,000 a year to any individual without this being counted as part of their estate for IHT purposes. Larger gifts are also exempt from IHT if the donor lives for at least seven years. It is suggested that Reeves may consider removing or reducing the £3,000 small gift allowance or extending the time required for larger gifts to become exempt from IHT.

We are also expecting to hear more about the potential cuts to welfare for UK residents classified as sick and disabled, with them potentially losing out on as much as £1,200 a year. The UK government has said that disabled people will have the right to seek employment without losing their benefits, as affected UK residents raise concerns.

Gold Is Gaining During Global Uncertainty

2025 has seen significant gains for gold. As of writing this on 19th March 2025, gold has hit a new all-time high of $3,045 per ounce in USD. Our useful February 2025 economic guide details topics such as Trump's Tariffs, rising inflation, geopolitical shifts & US-Europe tensions.

Figure 1 - Gold Price in USD Per Ounce

In just the last week gold has seen a 4% increase in British Pound (GBP) which if to follow course, it would reach a new all-time high soon. Trump's tariffs and a 4% decline in the U.S. dollar since the start of the year have contributed to the recent rise in the gold price. Investors continue to see gold as a 'safe haven' asset during global economic uncertainty, with demand remaining strong. It presents another investment opportunity compared to cash ISAs or the volatile stock market.

United States Calls for Russian Ceasefire in Ukraine

On March 18th, 2025, U.S. president Donald Trump pressed for a 30-day ceasefire in Ukraine, with Russian president Vladimir Putin outlining his demands in hopes of achieving peace. We will continue to monitor the situation and update the blog as more information becomes available.

Trump-Putin Phone Call March 2025

The result of a phone call between Donald Trump and Vladimir Putin is that Russia had agreed to a partial ceasefire on targeting energy infrastructure for 30 days. However, just hours later, it is believed that Putin's forces called an airstrike on the energy infrastructure of Slovyansk, leaving a city of 100,000 without electricity. Throughout the war, Ukraine has encountered power cuts as Russia has targeted energy infrastructure since the invasion of Ukraine in February 2022.

On March 19th, Ukrainian president Volodymyr Zelenskyy said he will reach out to Trump to discuss the call he had with Putin. Additionally, German Defence Minister Boris Pistorius has made it clear that Putin is playing a game and the American president won't be able to sit and watch for much longer. Pistorius stated that 'the Kremlin's insistence that the US must end military support to Ukraine as a condition of a ceasefire is unacceptable'.

Trump-Zelenskyy Phone Call March 2025

Trump said that the outcome of his hour-long phone call with Zelenskyy was very good. President Trump stated that Zelenskyy has agreed to a 30-day ceasefire of attacks on energy infrastructure. The call has been described by Trump as one which aligns both Russia and Ukraine in terms of their requests and needs, with the president believing it's a step in the right direction for peace.

Gold demand hits new record in 2024

The World Gold Council recently released their report titled 'Gold Demand Trends: Full Year 2024,' which includes valuable statistics for those interested in buying and selling gold. The report states that gold demand reached a new record in 2024, with the yellow metal rising by 1% year-on-year in Q4, contributing to a record annual total of 4,974 tonnes. (See Source)

One reason for the increase is central banks buying, which exceeded 1,000 tonnes for the third year in a row, with 333 tonnes in Q4. Additionally, the report noted that the average price in Q4 was $2,663 per ounce, yielding an annual average price of $2,386 per ounce (+23%).

Why Choose Gold?

Whilst we always suggest that you diversify your investment portfolio, we strongly recommend investing in gold. Like most commodities, the price can fluctuate, but owning physical gold means you have an asset that will always have material value.

The Royal Mint Sales Round-up for Gold Bullion in 2024

Additionally, in The Royal Mint's 2024 CGT round-up, they claimed that in Q4 2024, gold bullion was up 153% year-on-year. When comparing this to The Royal Mint's sales of gold bullion in Q4 2023, it's up 206% year-on-year. This includes gold bars, gold coins, and digital gold. (See Source)

Should You Buy CGT-Exempt Gold?

Whether you're new to investing in gold or experienced, you would benefit from Capital Gains Tax (CGT) exempt gold if you're a UK investor. British legal tender coins like gold Sovereigns and Britannias are CGT exempt, meaning any profit made when selling is tax-free. Our wide variety of CGT-free gold coins ensures you can diversify your portfolio without unnecessary tax liabilities.

Swap your non-CGT precious metals for CGT-exempt ones. Book an appointment or contact us, and our expert team will guide you through a seamless and secure process.

The Upcoming Changes to Capital Gains Tax

With the looming tax year on April 6, the Capital Gains Tax rate for Business Asset Disposal Relief and Investors' Relief will be raised to 14% from April 2025, and to 18% from April 2026. If this affects you, you may want to consider investing in CGT gold sooner rather than later to avoid the tax rises.

Sell Your Gold Before The Tax Year Ends

Our distance buy-in postal service allows you to sell your gold and silver from almost anywhere in the world. We provide packaging and arrange a trusted courier to pick up from your front door and deliver everything the next day to our offices. You can book a time that suits you, and it's fully insured!

Alternatively, you could opt for the Royal Mail Postal service, which is great for sellers looking to sell items valued up to approximately £2,500. Royal Mail Special Delivery is known for its speed and ease of use.

You can sell to us by visiting our two strategically located showrooms: 32-36 Harrowside, Blackpool, Lancashire, FY4 1RJ, and Suite 127, 100 Hatton Garden, London EC1N 8NX. It's important to note that you will need to book an appointment, as we are usually fully booked several days in advance.