Previous post Next post

Gold Consolidates Near All Time High In British Pounds

Sterling is under pressure today and gold near all time record highs in sterling (see chart) due to the likelihood that Britain’s ruling Conservative party will elect Boris Johnson (aka ‘BoJo’) as its new leader and Prime Minister today.

The result of the weeks-long internal party election will be announced today and there are increasing concerns about the outlook for the UK economy and sterling due to the poor fundamentals of the UK economy and the very uncertain outlook in the UK and internationally.

The UK deficit surged to over £7 billion pounds in June alone and the Brexit mess and the depressed UK economy pose massive challenges both for the new UK Prime Minister and for the British pound.

The massive deficit last month is the largest deficit for June in four years, and suggests that the already poor UK’s fiscal position may be weakening again.

The sharp jump in UK borrowing was driven by a very large increase in government spending. Total central government expenditure rose by £4.3 billion compared with a year ago, while government income (ie from tax receipts) only rose by £800 million.

Gold Price, 10-years

Gold Price, 10-years

Gold In Sterling Nears Record Nominal Highs - Click to enlarge

UK savers and investors would be advised to hedge the growing risks to UK assets and the pound by have an allocation to gold.

The very poor state of UK finances mean that most taxes are likely to go higher in the coming years including capital gains tax. This will be especially the case if a Corbyn or other Labour government comes to power.

For most investors and especially high net worth and family office investors, owning capital gains tax (CGT) free Gold Britannias and Sovereigns remains the most cost effective way, in terms of total round trip costs, to invest in and own gold.

Click Here to Listen to the latest GoldCore Podcast

Full story here
Mark O'Byrne
I founded GoldCore more than 10 years ago and it has been my passion and a huge part of my life ever since. I strongly believe that due to the significant macroeconomic and geopolitical risks of today, saving and investing a portion of one’s wealth in gold bullion is both wise and prudent.
Previous post See more for 6a.) GoldCore Next post
Tags: ,

Permanent link to this article:

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.