The GBP, or Pound Sterling, is the official currency of the United Kingdom. It was the primary currency used worldwide during the British Empire and throughout the 1700 and 1800s. However, the USD took its place as the leading currency worldwide after the end of the Second World War. The Pound is considered to be a stable currency, which benefits the United Kingdom's well-established financial market.
The Economy of the United Kingdom
The United Kingdom has the sixth-largest economy in the world, and that economy is fairly diversified across several industries and sectors. However, it is largely dominated by two sectors that go hand-in-hand: Service and tourism.
Due to the UK's historical significance, it draws a massive number of tourists from around the world year-round. Besides having numerous world-class restaurants, accommodations, and various other service-based businesses, the high traffic from tourists means that service workers are almost always in demand.
The Currency of the United Kingdom
The British Pound, or GBP, is often confused with the Euro. However, the two currencies are entirely different.
Despite joining the EU, the UK chose to keep the Pound as its official currency since the Euro did not meet its standards in various areas. However, the Pound Sterling shares quite a few similarities with the Euro. Primarily, it has a similarly high value. One British Pound is the equivalent of 1.26 US Dollars. This high value gives it a little resistance to minor dips, and its stability makes it fairly reliable for storing wealth.
From its inception in 1489, until 1931, the British Pound was backed by the gold standard. Since 1931, it has been a fiat currency with all of its value placed on its prominence in the global economy.
Buying Gold in the United Kingdom
The United Kingdom does not have a precious metals mining industry. However, the country is significant in the retail precious metals market. The Royal Mint, which is the official mint for the UK Government, makes the Gold Sovereign and the Gold Britannia coins, both of which are sold worldwide. The United Kingdom also maintains significant gold reserves at the Bank of England in London. The country also stores bullion on behalf of other countries.
In addition to physical gold bars and coins, the UK offers access to paper bullion investment via ETFs and their stock market.