The price of gold was £1,505 an ounce at 1:14pm today. That’s up 0.28% from yesterday’s close of £1,501.
Compared to last week, gold prices are down 0.41% and up 1.38% mom.
The 52 week gold price high is £1,529 while the 52 week gold price low is £1,452.
gold prices today
gold price over time
How to invest in gold
Many investors view gold as the ultimate safe haven asset. When stock, bond, and property prices fall sharply, gold can hold its value — and its price can even rise as nervous investors rush to buy.
Investing in gold is also a way to diversify your investment portfolio. If you hold a diversified mix of different assets, including gold, differential returns can protect the value of your investments.
There are several ways to invest in gold. Each has advantages and disadvantages…
One way is to buy gold in physical form:
- Gold bar. Known as bullion, bullion is a popular choice for buying gold. Gold bars are usually sold in grams or ounces. Clarity, manufacturer and weight should be stamped on the front of the bar.
- gold coins. The Sovereign and the Britannia are popular collectibles that command a premium over what you would get for the same amount of gold in bullion.
- Gold Jewellery. As with gold coins, you’re likely paying for gold when you buy it in the form of jewelry – a premium that can range from 20% to 300% depending on the manufacturer.
Alternatively, investors can also invest indirectly in gold:
- gold stocks. Buying shares in gold mining or processing companies is another way to invest in the yellow metal. You cannot own physical gold, but you are exposed to the rise and fall of the price of gold in the market.
- gold fund. There are a number of funds that offer exposure to gold. You can invest in gold stocks or trade gold derivatives on the options and futures markets.
Should you invest in gold?
You should invest in gold if you want to hedge against risk or diversify your portfolio. Gold would not be your first choice for long-term capital growth.
Over the past five years, the price of gold is up about 36%, while the S&P 500’s total return has been 60%.
Gold prices can be extremely volatile, and that means gold is not a perfectly stable investment. In fact, you can create a well-diversified investment portfolio without using gold at all.
It should also be noted that gold in its physical form, unlike other investments, does not generate any income.
Is gold an inflation hedge?
Studies have shown that gold can be an effective means of protecting your wealth against inflation, but only over extremely long periods of time, measured in decades or even centuries.
Over shorter timeframes, the price of inflation-adjusted gold has fluctuated dramatically, making it a poor short-term protection against inflation.
*The gold price data above is provided by Zyla Labs, which sources asset price data from a variety of sources. This gold price represents an average of spot gold prices across several leading metal exchanges. Prices are updated every business day.
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