The price of gold today, as of 9:08am, was £1,474.57 per ounce. That’s up 0.20% on yesterday’s closing price of £1,471.66.
Compared to last week, the price of gold is down 3.88%, and it’s down 0.38% from one month ago.
The 52-week gold price high is £1,534.10, while the 52-week gold price low is £1,452.16.
Gold Prices Today
Gold Price Over Time
How to invest in gold
Many investors consider gold to be the ultimate safe-haven asset. When the prices of shares, bonds and property drop sharply, gold may hold its value – and its price can even increase as nervous investors rush in to buy.
Investing in gold is also a way to add diversification to your investment portfolio. When you hold a diversified mix of different assets, including gold, varying returns can protect the value of your investments.
There are several ways to invest in gold. Each has pros and cons…
One option is to buy gold in physical form:
- Gold bars. Known as bullion, gold bars are a popular choice for buying gold. Bullion is typically sold by gram or ounce. Purity, manufacturer and weight should be stamped on the face of the bar.
- Gold coins. The Sovereign and Britannia are popular collectables that command a premium over what you would get for the same amount of gold in the form of bullion.
- Gold jewellery. Like gold coins, you’ll probably be paying extra for gold when you buy it in the form of jewellery – a premium that could be anywhere from 20% to 300%, depending on the manufacturer.
Alternatively, investors can invest in gold indirectly:
- Gold shares. Buying the stocks of gold mining or processing companies is another way to invest in the yellow metal. You don’t get to own physical gold, but you do get exposure to the rise and fall of the price of gold in the market.
- Gold funds. There are a range of funds that provide exposure to gold. They may invest in gold stocks, or they may trade gold derivatives in the options and futures markets.
Should you invest in gold?
You should invest in gold if you’re looking to hedge against risk or diversify your portfolio. Gold would not be your first choice to earn long-term capital growth.
Over the past five years, the price of gold has appreciated approximately 36% while the total return of the S&P 500 has been 60%.
Gold prices can be extremely volatile, and that means that gold isn’t an entirely stable investment. In fact, you can easily craft a well-diversified investment portfolio entirely without gold.
It should also be noted that gold in its physical form, unlike other investments, does not produce an income.
Is gold an inflation hedge?
Studies have found that gold may be an effective way to defend your wealth against inflation, but only over extremely long periods of time, measured in decades or even centuries.
Over shorter time periods, the inflation-adjusted price of gold fluctuates dramatically, making it a poor near-term hedge for inflation.
*The gold price data above is provided by Zyla Labs, which sources asset price data from a wide range of sources. This gold price represents an average of spot gold prices on several leading metals exchanges. Prices are updated every business day.
