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The history of gold as a commodity

Since humans began trading and exchanging goods, gold has been in circulation as an incredibly valued commodity. The gold markets date back to as early as 3000 BC.C, initially used as currency and eventually melted and reshaped to form jewellery.

Gold quickly began to represent wealth throughout the world, with metal based currency as one of the most popular ways to show this in modern times. Coins in Great Britain were introduced in 1066, with their value based upon the amount of gold or silver that they represented.

With a high rate of destructibility, most gold ever mined is still in circulation now; recycled gold that has been reshaped makes up a third of the global supply. Despite this, gold is still a limited resource, making its value much higher than other precious metals.

To this day, gold is still vital in the modern economy, even if it is no longer present in everyday transactions. It has preserved wealth throughout generations; something that cannot be said for other currencies and commodities.

The crisis commodity 

Known as a ‘crisis commodity’, gold is an investment that people tend to make during times of political and economic uncertainty. These times reduce confidence in the global economy and banks, lowering the overall value of the financial assets people usually rely on.

As gold is outside of the banking system, people turn to it for stability. A tangible asset, gold holds it value regardless of crisis or inflation, offering consumers, investors and enterprises a safe form of financial diversification. By diversifying your investment portfolio, you lower your overall investment risk, protecting your assets.

A rise in value

With the price of gold increasing by 15% in 2019 and expected to rise further in 2020, strategists are predicting a large commodity boom between 2020 and 2023. In addition to this, as a result of Brexit, the US election and other political events occurring over the next year, increasing political unrest is also anticipated.

Investment experts are saying that now is the perfect time to invest. They are advising people to use gold as a type of insurance to rely on in turbulent times, a way to preserve their wealth against the changes of the economic tide - and it is best to invest now before the prices rise during the boom.

Making a profit

Many people look to gold investment as a way of making a profit. If you buy gold when the value is lower and then sell off your investment once the prices rises, a large profit can be made if done correctly.

This method does come with a risk, as despite the stability there is always a chance of the value dropping once you have purchased your gold. However, as detailed above, the price of gold is predicted to surge. So if you want to make a profit on your investment, now is the time to buy.

Whether you’re new to gold investment or a loyal bullion buyer, BuyBullion24 is the perfect platform to invest, collect or save.

We’d be happy to help you make your decision, so contact us if you require any further support.