The main sources of the rise in the price of gold, and therefore the golden pound, are the challenge of the dollar and more and stronger geopolitical tensions. Especially after Russia’s invasion of Ukraine and the sanctions imposed by the West, many countries increased their gold reserves. At the same time, the rise in economic power of the BRICS has again raised the question of whether the dollar will remain the key to world trade.
As a result, gold was yesterday close to 2,331 dollars or 2,150 euros per ounce. The rise of the precious metal did not come suddenly, as it has gained in value 3.66% in one week, 6.88% in one month and 17.22% in one year. Interestingly, the New Year 2024 found the price of gold at 1,871 euros, but its value has risen by 14.85% in 4 months. Of the 17.22% 12 month change, almost 15% was in 2024! Given that as we mentioned above it is the adverse developments that push investors into gold, the bullish rally in the 4-month and the distance from the 12-month low shows that pessimism has taken over.
Returning to pounds, the highest buying and selling prices are expected to be the old mint and Elizabeth 1973 and earlier years, with a purchase at 491.47 euros and a sale at 592.11 euros. Followed by Elizabeth 1974 with purchase at 491.47 euros and sale at 586.79 euros. The defective ones are bought and sold at 476.72 and 574.36 euros respectively. Obviously, the general rule is that the closer the date, the more expensive the pound.
In December, the selling price was 431.38 euros and the buying price was 519.8 euros, in March 2022 it was 419.86 euros and the selling price was 506 euros. The highest price of 2020 was in August with 396.05 euros and 477.37 euros, while in 2021 it was in November with selling at 375.05 euros and buying at 452.1 euros. For a deeper historical look, in 2000 gold was close to 280 dollars or 258 euros, while you could buy one pound for 50 euros. Since then, gold has gained 756.57% of its value and the British pound around 900%. Obviously, even over such a long period of time, everything becomes more expensive as currency rates fall, but such a profit margin is hard to find elsewhere.
FROM LIQUIDATION TO THE MARKET
The timing of liquidations is also of interest. In 2010 the Bank of Greece bought 195,383 units. In 2011, about 122,686 golden pounds. In 2012, 101.57 golden pounds were liquidated, in 2013 there was an increase to 105,263 golden pounds, and in 2014 the Bank bought 109,563 golden pounds. The difficult in many ways 2015, where the uncertainty surrounding the Greek economy hit red, Greeks liquidated 61,518 golden pounds. In 2020, 86,584 units were sold to the Treasury and in 2019, around 99,744. In 2020 the number fell to 86,584 units, while in 2021 it almost halved with 45,588 units. In 2022, 52,241 gold pounds were liquidated and in 2023, 39,435 pieces.
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