Jacksons Accelerator Electric Edition Accelerator Electric Edition Joomag | Page 13

A golden opportunity
Owning precious metals will diversify your
investment portfolio, says Robin Newbould,
managing director of BullionRock. So, is the time right to consider an allocation to
precious metals in your portfolio? Well, a number of
external factors are usually responsible for movements
in the price of gold:
When it comes to precious metals, consistency is
the key: fine gold and silver bars are, elementally, fine
gold and silver bars, no matter what language you
speak and what currency you spend. Investors have
physical precious metals in coin and bar form, stored
in BullionRock’s secure vault in Guernsey; holdings that
play a fundamental part in their diversified investment
portfolios. • Global economics – Gold generally does well during
The World Gold Council states that:
“Many investors are drawn to gold’s role as a diversifier –
due to its low correlation to most mainstream assets – and
as a hedge against systemic risk and strong stock market
pullbacks. Some use it as a store of wealth and as an
inflation and currency hedge.
As a strategic asset, gold has historically improved the
risk-adjusted returns of portfolios, delivering returns while
reducing losses and providing liquidity to meet liabilities in
times of market stress.”
Surrounded by water and hewn from granite, Guernsey
affords BullionRock’s clients some valuable advantages:
physical location, natural security, low crime rate,
financial services’ know-how and an independent
tax system, to name but a few. BullionRock trades
and stores your precious metals cost-effectively and
securely without the imposition of any sales taxes.
UK tax residents can also enjoy capital gains tax-
exempt gold and silver investments in the form of gold
sovereigns and gold and silver Britannia coins.
Once purchased through BullionRock, the cost of
storing precious metals is less than the management
fees charged by exchange-traded funds. Your physical
bullion, in the exact form, weight and purity you have
purchased, is held within a secure six-sided steel
and concrete vault that is constantly recorded and
monitored, just as you would expect.
global economic slowdown, as it is considered a
safe haven.
• Geopolitics – Gold tends to do well during times
of geopolitical uncertainty.
• The US dollar – Gold is denominated in US dollars
and your return will therefore be influenced by
changes in the exchange rate of US dollars to your
base currency.
• Central
banks – Central banks are significant
holders of gold as a reserve asset, their buying and
selling can therefore materially impact the gold price.
• Interest rates – Low interest rates generally tend to
support or improve the gold price, since the
opportunity cost of holding gold, which generates no
income, decreases.
• Inflation – Gold prices have, historically, risen, during
times of rising inflation.
In 2019, most of these factors have been playing to gold’s
advantage: economic downturn fears, an unpredictable
US president and low, or negative, interest rates have all
been on hand. Perhaps unsurprisingly then, the central
banks of most countries have been buyers of gold and
last year’s net investment (some 651.5 tonnes worth
USD26billion) was the highest since the abandonment
of the gold standard in the 1970s.
Perhaps it’s time to join them?
For further information please call [phone]
or visit www.bullionrock.com/invest