Gold vs ftse
Stocks and shares have long been the main rival to gold as an investment. While the potential for sizable gains lies in the bull markets when strong economies support the markets, gold‘s popularity benefits from the bear markets, when share prices fall, often reflected by economic slowdown or even recession.
During these times of uncertainty, gold protects investors and their wealth against the devaluation caused by inflation, but gold is traditionally a long-term investment. Investors may be able to see quicker profits in some cases with stocks, and it’s that allure that makes stock markets the big rival.
One of the reasons stocks are so popular is that they can offer it’s investors an income in the form of a dividend. However in recent years dividend yields have continued to be suppressed and when it comes to the capital gains, gold has enjoyed far superior growth when compared with the FTSE 100 average over the past couple of decades.
To help highlight the potential benefits of buying British gold coins, a gold investment of £100,000 in October 2018 would be worth over £150,000 in just 18 months to April 2020.