The latest research indicates that Brits are increasingly investing in gold, even in small bars valued under £100. Due to rising demand and economic uncertainty, the price of gold has dramatically soared to approximately £1,850 per ounce.
BullionByPost reports a surge in Brits investing their money in tiny quantities of gold. The 1g gold bar is gaining popularity, with sales increasing by 340 per cent over the past four years. The bar itself is worth around £60.
BullionByPost further revealed that the average order value is now close to £1,400, with most investments made in products weighing 1oz or lighter. Data from the past decade shows that orders under £2,000 have risen by 86 per cent in just the last year.
This increased demand has resulted in nearly 50 tonnes of gold bars and coins being distributed to over a quarter of a million Brits, totalling a value of £3 billion.
So why are people choosing to invest in gold right now?
Brits may find investing in gold more appealing as it’s exempt from VAT. Additionally, certain coins like gold sovereigns and 1oz Britannia are free from capital gains tax.
The tangible nature of gold also means it can be quickly sold off by investors if needed. Similar to stock markets, the price of gold can be tracked, allowing for passive investments in the commodity.
Although some people buy up to £1million of gold in one order, a 1oz bar – smaller than a 5cm USB memory stick – or a 1oz gold Britannia coin, are currently the most popular gold purchase, worth roughly £1,900.
A 2.5g gold bar, which is a little larger than a SIM card, is worth about £170, and has seen sales increase 214 per cent.
A 20g gold bar, slightly longer than an AAA-size battery, is worth £1,268, and has seen sales increase 265 per cent.
A 1oz gold Britannia, the most popular 1oz coin for investment — about the size of a 20p piece — is worth £1,850 and saw an increase of 62 per cent.
The current average prices for gold are as follows, though it’s crucial to note that these figures fluctuate regularly:.
2.5g gold bar – £170.
20g gold bar – £1,268.
1oz gold Brittania – £1,850.
12.5kg bar – £750,000.
BullionByPost managing director Pete Walden said: “Gold bars and coins are no longer the preserve of the wealthy, but are instead an increasingly popular investment choice in more modest amounts for many people across the length and breadth of Britain.
“A little physical gold goes a long way, and by tucking some away in a safe place at home, investors know they have more control and can actually get their hands on it, if need be.”