While the ascent of crypto attracted the headlines in 2024, it was also a good year for gold. Geopolitical and economic uncertainty has led many investors back to the yellow metal, which has traditionally been a safe haven during turbulent times.
Over 2024, prices rose nearly 28% in sterling terms, starting at £1,602 per ounce (oz), eventually peaking at £2,163/oz in November before ending the year at £2,071/oz. Despite the December dip, there is every expectation that the precious metal will make further gains in 2025, as global tensions and inflationary pressures continue.
Gold historically has tended to perform well in this kind of uncertain climate as an alternative to bond and equity markets. It retains an inherent value both as a physical component in jewellery and tech, and also as a bona fide parallel currency when markets are unsettled.
Gold companies in the UK metal marketplace are convinced their investors are more likely to consolidate than sell over the forthcoming year. Their forecasts indicate that the price of gold may peak at $3,070 in 2025, and that this demand will be largely driven by investors relying on precious metals as a safe hedge against risk.
Another driver is the increase in sovereign debt as growth fails to keep up with government spending, which rose after the economic crash and then again during the pandemic. A third cited reason is increased demand amongst banks, as some have switched from an excess of dollars to gold bullion.
If you are investment planning in Cheshire and considering gold, then contact local specialist financial planner Hartey Wealth Management today to discuss your options.
