Just a brief working note today as staff holidays are limiting my time.
I know in these blogs I often mention exchange rates and the effects they have on the price of gold and silver, our favourite precious metals. Well, once again - and with even more emphasis - I would draw your attention to the quickly changing rate of GBP/USD.
GBP vs USD
As of this morning Monday 13/08/18 we are now down at 1.27 GBP = 1 USD which is well under the previous “Ceiling” of 1.30 GBP-USD.
This means that it now takes more GBP to buy the necessary USD in order to be able to purchase your gold coins and bars. The resulting consequence is that the price of gold in GBP is underpinned and strengthened by the ever-decreasing value of GBP against the USD. Dollar strength is causing this, and also the weakness and worries of how we resolve (or not) the Brexit issue.
Despite gold in USD once again touching the level of 1200 USD per ounce, gold last week strengthened in GBP from around £930 per ounce to almost £950 per ounce.
To Strike or Not to Strike?
If the GBP/USD exchange rate in percentage terms moves more quickly than the rate of decline in the price of gold in USD, then the price for us actually goes up!
Gold down - price up!
This information may help in allowing you to watch for those dips during the day or week when GBP strengthens ever so slightly, and for just a short time you get the chance to Strike and buy some of our favourite precious metals at a great price.
Until next time,
This blog represents one person’s opinion only. Customers should conduct their own research and take advice before making an investment. We do not offer investment advice.