New UK Regulation is 'Game Changer' For Gold
Gold as an investment or savings mechanism has been frowned upon by the
financial services industry in the UK and internationally for many
years.
This was due to the bursting of the gold bubble in 1980
(when Volker increased interest rates to nearly 20%), the poor
performance of gold in the 1980’s and 1990’s and the superior
performance of cash, bonds and equities in that 20 year period.
It
was also due to the fact that gold bullion was not lucrative for
financial advisers and financial institutions such as stockbrokers and
banks. Gold bullion is bought as a long term investment or store of
value and as financial insurance. It is normally bought and kept and
owned by the owner for a long time – even passing it onto children.
This
means that financial institutions do not make continuing commissions
which is their stock and trade. Gold bullion is also a very low margin
business when compared to structured products and the many investment
products with non transparent and often very high charges and fees.
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