Home Business Insights & Advice Gold could be your way out of London investment woes

Gold could be your way out of London investment woes

by John Saunders
9th Jul 19 4:22 pm

Investing in London has become a nightmare. From the top financial centre in Europe to a city on the brink, it’s hard to see where things are going. If you’re looking for new investment options, things may seem bleak.

London Real Estate Is Tanking

Real estate has become a top alternative asset in the wake of the financial crisis. International investment has transformed cities across the globe, and real estate became a major investment vehicle during a time when shares were a gamble.

While Brexit starves London of international investment, the damage done to the housing market by decades of gentrification means Millennials have turned their backs on the city for more affordable lives elsewhere. With them goes much of the talent base that’s made London’s success as a financial centre possible.

If you believe in real estate as a sound investment, follow the young. Invest in cities where house prices are going up, such as Manchester, Birmingham, and Leeds, thanks to Millennials seeking affordability outside of the capital.

UK Economy Is Shrinking

The UK economy is shrinking as the manufacturing sector scales back on Brexit concerns. But the worst is yet to come. The future of London as a global financial centre is at stake, and many suspect that post-Brexit, the balance will shift to Frankfurt or Paris. Already companies like Goldman Sachs, Morgan Stanley, and Citigroup have moved $300 billion in assets from London to Frankfurt. Barclays alone is responsible for shifting $215 billion to Dublin, and BNP Paribas and Société Général are doubling down on Paris by moving staff out of London.

Find Investment Opportunities in Precious Metals

Feel like you’re running out of options? The combined pressures of Brexit and a slowing global economy are squeezing profitable opportunities out of the UK investing landscape. At this point, it’s probably a wise decision to move into a defensive position and better weather the incoming economic storm.

Right now, you should be looking at gold bullion, silver coins and other options related to precious metals for protecting your wealth through the near-future. Gold and silver are the safest investments you can make when nothing else is certain. There are several factors that drive investors toward precious metals:

  • Long term price stability: Over the long-term, gold has remarkable staying power. It is the best place to put your money if you do not want to lose your capital.
  • Inflation resistance: Gold is an excellent inflation hedge. Whereas foreign currencies will lose value to inflation over time, gold maintains its value. Year-over-year, results may differ. Look at gold prices over the last several decades to see how it really works.
  • Low third-party risk: When economies hit the rocks, poor management and fraudulent schemes have a way of coming to light. With gold bullion and silver coins, tangible assets you can store the way you want, there’s virtually zero third-party risk.

For a lack of better options, gold and silver can save your investments for the future. It’s going to be tough going for the next few years, and your savings need to be ready.

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