So far in 2022 a recession has been sidestepped. But can Brits breathe easy? Or will the cost-of-living crisis continue to escalate ending in a recession for the UK economy? These are the questions we will seek to answer in this article as experts warn a recession is not off the table yet.
A potential recession could prompt many Brits to consider how they can manage to afford their household expenses in the coming year. If you have unwanted gold at home the solution could be closer to hand than you might think. We buy a range of precious metals at some of the best prices online, so why not take the option to sell scrap gold today?
What does the data say?
ONS data reveals that a recession was narrowly avoided, as the UK economy grew 0.5% in May. Far from being time to rejoice, the warning signs that inflation could increase, and the cost of living will escalate are stark. If a recession does occur, Brits will undoubtedly feel the squeeze. Inflation is already at a 40-year high, and many have struggled to pay their household bills due to the hike in energy prices following the war in Ukraine.
Although, the Bank of England is not predicting a recession this year, they caution that a significant downturn is expected between October and December with a contraction of almost 1% forecasted.
Yet, 68% of economists said they believe there will be a recession in 2023 when asked in a Financial Times survey. As many as 38% said a recession would come in the first quarter of 2023, while 30% forecasted recession in the third or fourth quarter of the year. For a recession to be confirmed, GDP must decline for two successive quarters, meaning a recession could be called as soon as the end of 2022, if the economy continues to decline.
Will households cut spending and look to save?
The Bank Rate, the interest rate set by the Bank of England, increased in June 2022 from 1% to 1.25%. This comes at a time when the institution is uncomfortable with the high cost of living and level of inflation. In effect, the UK’s national bank is attempting to control inflation by curbing spending and encouraging saving.
Household bills, however, are currently at an all-time high and look set to rise again in October. So, despite the inclination to save and take advantage of higher interest rates, Brits may need to channel their current levels of disposable income into paying higher bills in future.
Scrap gold can be one solution to support paying household bills during the cost-of-living crisis and predicted recession. UK Scrap Gold offers some of the best prices for scrap gold online, as you can see in the table of 9 carat prices below.
July 25th 9 carat gold prices:
|UK Scrap Gold||£16.46|
|Top Dog Scrap Gold||£14.40|
Gold prices are currently healthy. At the time of writing, 25th July, gold prices are at £45.80 per gram, up from £43.20 per gram in January. It’s worth noting that the gold price tends to rise in times of economic crisis. If you have ten grams of 9 carat gold to sell today, you stand to earn £164.60!
Sell scrap gold today to beat the squeeze
You can find our scrap gold calculator on our homepage; with just a few clicks of this handy tool we’ll calculate the value of your gold. All you need to know is the weight and purity of your precious metal.
We accept a range of precious metals including, jewellery, coins, gold bullion, watches and dental gold.
Once you’ve determined the estimated value of your gold you can sell your scrap gold in three simple steps. Should you have any questions about selling your gold or if you would like to book a face-to- face appointment at our head office in Wolverhampton, please don’t hesitate to contact us.