Venturing into the market for precious metals, primarily gold or silver, may appear decadent; however, financial analysts see this move as a safe bet amid fiscal and political instabilities. Individuals with considerable wealth often have a portion of gold reserves, shares Damian Matthews, the proprietor of Matthews Auction Rooms in Kells, Co Meath, who also facilitates private transactions in gold.
Matthews has a particular interest in the exchange of gold, and to some extent silver, amongst everything from institutional investors, notably central banks from a plethora of nations, to private persons desiring to safeguard a fraction of their wealth against inflation and economic fluctuations.
While central banks acquire gold reserves as a shield against global market fluctuations, it’s worth noting that even when U.S. President Richard Nixon severed the direct connection between the US dollar and the American gold reserves in the 1970s, many other currencies- including the euro and the British pound-followed suit. Today, these international and national currencies are categorised as fiat currencies, which lack backing of a tangible commodity like gold or silver.
The practice of printing fiat currency without a tangible backing has, according to bullion traders, only enhanced the appeal of investing in gold and silver, whether in the form of bullion, coins or jewellery.
The valuation of these precious metals witnesses daily adjustments on the global market, yet gold prices exhibit a gradual rise and fall, and generally appreciate over time due to supply constraints and growing demand.
However, one needs to proceed with caution, as counterfeit gold is commonplace. Professionals advise prudence when purchasing gold from retail stores or online marketplace platforms. “It’s vital to transact with a trustworthy dealer when acquiring gold. I ensure every item is authenticated before selling it,” remarks Matthews.
The Dublin Assay Office, a vendor of gold bars and various coins, performs purity checks of precious metals. If assets pass the statutory purity requirements, the office accredits it with the matching hallmark.
If you wish to purchase gold bars, Matthews suggests acquiring several of lighter weights, such as 10g, 20g, 100g, as opposed to 1kg bars, which allows flexibility in selling them over time.
According to Matthews, collecting gold and silver through coins is the best method. For instance, if one purchases a gold sovereign from England, they are guaranteed 7.9 grams of 22-carat gold. Currently, a single gold sovereign is valued around €510, a significant increase from its worth of about €400 in 2023. There are other desirable gold and silver coins as well, like South African Krugerrands, Canadian Maple Leafs, American Eagles, and even Austrian Philharmonics and Australian Kangaroos.
Opting for gold bars is welcome too, but accommodation and utility could be maximised by buying a variety of smaller weights like 10g, 20g or 100g, rather than bulkier 1kg bars. Storage is an apparent concern, some prefer the safety of their homes while others choose to warehouse at renters such as Merrion Vaults on Burlington Road, Dublin.
Matthews’ forthcoming auction scheduled for Tuesday, 16th July, consists of 350 lots comprising of a singular owner’s extensive collection of pure silver coins, medallions, and ingots. Among these is an Irish Proclamation commemorative coin representing the seven signatories (€70-€120) and a 500g pure silver ingot from Switzerland (€350-€550). Matthews holds an expectation that his zero reserve lots will attract new collectors and prove a safe investment for smaller-scale investors as they stand to purchase below scrap value.
For those who appreciate the allure of wearing their investments, fine jewellery is an alternate path. Ross’s Auctioneers and Valuers, situating on 37 Montgomery Street, Belfast, will host a fine jewellery and watches auction on Thursday, July 18th, starting 7pm. An expected standout in the auction’s 530 lots according to Philippa Harty of Ross’s jewellery department, is a three-stone 2.5-carat diamond ring made from 18ct yellow gold, expected to fetch between £3,000 and £5,000. An additional highlight is an Art Deco-styled bracelet composed of 18ct white gold and thirteen carats of diamonds, valued between £22,000 and £24,000.
Even though it might not be everyone’s cup of tea, there’s seen an escalating fascination among buyers for high-quality whiskies and spirits. Among several items up for bidding in the contemporary online Bonhams auction of whisky (spelt in the Scottish manner) and spirits, set to conclude on the 17th of July, there stands out a collection of seven exclusive bottles from the Redbreast Dream Cast compilation, straight from Midleton Distillery, Cork, with a price range set between £8,000 and £14,000. The package also includes a guided tasting session at the distillery and a two-night stay at the luxury Castlemartyr Resort in Cork.
matthewsauctionrooms.com; rosss.com; bonhams.com
Sold price details?
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