Why Gold?
WHY you may want to invest in Gold.
1) Between 2000 and 2025 gold delivered an average annual return of over 10.6%* (in GBP) – consistently outperforming many traditional savings.
Let’s put a bit of perspective on that:
£1,000, £3,000 and £10,000 invested for 25 years at a 10.6% return each year would have grown to £12,413, £37,239 and £124,130, respectively.
10.6% is much higher than inflation!
*Source: In Gold We Trust
2) Or perhaps you would like to compare Gold with property?
USA
In 1920, you needed 305 ounces of gold to buy your average house. Now you need just 140 ounces (you could buy more than TWO properties with your gold!)
UK
In 1926, you used to need 145 ounces of gold to buy your average house. Now you need just 84 ounces!
USA: Used to be 305, now just 140 ounces of Gold to buy the property.
I also 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.
Here are some other reasons why you might want to have some:
Highly liquid: Gold can be sold and you can get the cash in your bank account within a few days.
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.
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.
Tangible asset: Gold can’t be printed, diluted, or devalued by central banks.
Wealth preservation: Gold has often outpaced inflation, helping protect the real value of your savings.
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.
Private ownership: Gold is a discreet, privately held asset with no counterparty risk, and it can exist outside the traditional banking system.
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.
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 SIPP or SSAS pension without paying Capital Gains Tax.
I can’t think of any other investment that provides all this – Can you?