Why Gold?

Let me give you TWO reasons why you should have some Gold

You think property has done well?

In 1920, it took 305 gold ounces to buy an average home in the USA.
Now, in 2025, just 140 gold ounces (LESS than half).

I was shocked by the maths:

  • 1920: New home: $6,300, Gold: $20.67/oz.

  • 2025: New home: $450,000, Gold: $3,225/oz.

gold vs property

Since 2000 gold has delivered an average annual return of OVER 10.6%* (in GBP)

Let’s put a bit of perspective on that:

£5,000 invested for 5, 10 and 25 years at a 10.6% return each year would have grown to £8,275, £13,694 and £62,065, respectively.

*Source: Incrementum

I think it’s important to try and protect your cash from being eroded by inflation - which is why I like you to have some physical gold.

Similarly, as you can see from the charts below, it’s delivered some great returns - which is why I like you to have some exposure to the equities.

Here are some other reasons why you might want to have some:

  1. Highly liquid: Gold can usually be sold for cash within days if needed.

  2. Strong track record: Gold has been trusted for thousands of years, with an average price increase of over 10.6% per year (in GBP) since 2000.

  3. Diversification: It helps spread your risk by moving some of your wealth into different assets (you’re probably in bonds, equities and property). Add Gold to the mix.

  4. Tangible asset: Gold can’t be printed, diluted, or devalued by central banks.

  5. Wealth preservation: Gold has often outpaced inflation, helping protect the real value of your savings.

  6. Tax advantages: British-minted gold coins are exempt from UK Capital Gains Tax (as at 28th January 2025). Speak with a tax advisor about any potential tax benefits for you.

  7. Private ownership: Gold is a discreet, privately held asset with no counterparty risk, and it can exist outside the traditional banking system.

  8. Secure storage options: You don’t have to store it yourself; many reputable dealers can securely store and insure your gold for you. Away from your home.

  9. Flexible retirement asset: Gold can be part of your long-term savings strategy and accessed easily if needed during retirement. You can hold certain types of bullion in your pension.

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Gold price projections

Why now?

Set our below are two charts - take a look:

The first chart compares the current gold price bull run (the red line) to what happened in the 1970’s (the gold line) and the second compares the Barrons Gold Mining Index in the 1970’s - the bull run on mining equities (the gold line) with the current index (the red line).

Could be some exciting times if history repeats itself.