For those looking to protect their wealth against inflation and economic instability, purchasing gold remains one of the most effective strategies. Not only does it safeguard your money, but it also adds diversification to your portfolio, reducing overall financial risks.
In terms of performance, gold has achieved substantial gains over the last decade, providing a better yield than traditional savings options. Consider this; if you'd invested £25 a month in gold over 18 years between 2002 and 2020, you would have £13,393.
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Aside from traditional investment avenues, Martin Lewis suggests considering: Gold and Commodities: For those concerned about market volatility, commodities like gold can serve as a hedge against inflation and economic uncertainty.
So, If you're looking for a low-risk investment that can offer stability in a volatile market, gold may be your better choice. If you're willing to take on a little more risk in pursuit of higher returns and long-term growth, stocks may be the better option.
Given that gold is already trading around $3,050 per ounce, a jump to $5,000 could occur within a 1 to 3-year window under the right conditions. Short-Term (2025): If a severe economic crisis, inflation spike, or geopolitical disaster occurs, gold could reach $5,000 as early as the end of 2025.
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Is it worth investing in gold in the UK?
But since the turn of the millennium, gold in sterling terms has risen by 11.7% a year on average, far outrunning the stock market, house prices and bonds.” Gold rose 11.7% in 2022, 7.8% in 2023, and 28.3% in 2024. This compares to a 0.3% annual return for UK shares in 2022, 7.9% in 2023 and 9.5% in 2024.
However, gold bars are not considered legal tender, and are therefore not a capital gains tax-free investment. Even with gold bars and other gold coins, Capital Gains Tax typically only applies to gains made above the annual exemption amount for that financial year, depending on individual circumstances..
Gold offers stability and liquidity as an investment; platinum, on the other hand, is more volatile and tied to industrial demand. Both attract similar GST and capital gains tax, with hallmarking at 22K/24K for gold and 950 for platinum. Platinum is more durable and scratch-resistant but less liquid than gold.
You might allocate 40% to broad market index funds or ETFs, 25% to bonds for steady income, 20% to real estate investments, and 15% to cash or short-term CDs to maintain flexibility. This strategy aims for gradual growth while still cushioning against market volatility.
Gold is generally not prone to big price swings or high volatility, but it typically keeps growing alongside its utility. This means that forecasting future prices of gold for the next ten years is expected to indicate an increase in value, potentially resulting in profits for those making these predictions.
One-ounce gold bars are usually a better option for those who look at gold as a long-term investment and want the optimal price. However, because they're larger — and, therefore, more expensive to purchase — they have a higher barrier to entry that not everyone can afford.
Gold is steadier and better during a market decline. Silver is less stable but may excel during bull markets because of industrial demand. Both metals serve as inflation hedges, are poorly correlated in the market, and assist in minimising overall portfolio risk.
Price volatility: The price of gold can be volatile, and it may fluctuate significantly over short periods. This can make it difficult to predict its value and can make it a risky investment.
Gold boasts greater flexibility than ISAs too. With the physical ownership of gold bullion, investors can buy and take delivery of their gold, and sell at a time of their choosing.
Gold might be better than cash at wealth protection over the long term. Interest rates remain low, meaning that your money in the bank “earns virtually nothing,” CNN Money reports. When you take inflation into account, cash might actually decrease in value over time.
With prices surging and ETFs gaining popularity in India, silver could be a smart portfolio addition in 2025. According to the Silver Institute, global silver demand is projected to exceed 1.2 billion ounces in 2025, driven by its critical role in solar energy, electric vehicles (EVs), and industrial electronics.
Gold is typically a good investment if you're looking for a way to safeguard your wealth, protect against inflation and diversify your portfolio. But you might also consider investing in other precious metals, too.
Regardless of economic downturns and other difficulties, gold can generally maintain its value, making it more reliable when compared to cash. Therefore, if your main objective is to protect your wealth during uncertain times, it would be best to keep the precious metal.
Even though there are no limits to how much gold you can own, there are still some rules that you should keep in mind – mostly when it comes to Capital Gains Tax (CGT) and Value Added Tax (VAT).
A gold or commodity-focused ETF or mutual fund can be the simplest way to invest in gold without the need to taking physical ownership. The price of a gold ETF, for example, is linked to the price of gold, and investors can buy and sell shares of the ETF like they can a stock.
Looking ahead to fall 2025, gold seems to be holding steady for now and may rise if underlying factors drive up demand. If you're looking to add a gold investment to your portfolio, consider your goals and liquidity needs. Physical gold bars and gold coins can be a solid store of value and you get full ownership.
