Why invest in gold?
A historical perspective
By far the best performing asset of the 21st century: Gold has outperformed every significant asset class and commodity over the past decade. They have an intrinsic value and unlike shares or funds, their value can never drop to zero.
A time-honoured tool for Portfolio Diversification
Gold typically moves contrary to most mainstream asset classes, including equities, property, and USD, making it a highly effective tool for portfolio diversification, particularly during worsening economic conditions.
An effective hedge against inflation and currency depreciation
Gold has long established itself as a reliable hedge against inflation, rising in proportion to the value of consumer goods, whilst other assets and commodities weaken.
A universal currency that’s easily and immediately liquidated
Unlike many other mainstream assets, including property, ISAs, and currencies, gold is a universal currency held by most central banks, and can thus be easily and immediately liquidated, without any counterparty risk.
Most financial advisors recommend allocating 10%-20% of their portfolios to gold or gold-related investments
Significant Tax Advantages: VAT and CGT exemptions
In the UK, all investment grade physical gold is exempt from VAT (Value Added Tax). Certain types of physical gold are also exempt from Capital Gains Tax on growth.
A look to the future: here’s why – unlike other mainstream assets – the price of gold always rises in the long term
Steady demand from central banks
Central banks are required to hold a certain percentage of their reserves in gold, which ensures continued demand and rising gold prices.
Skyrocketing demand and positive price elasticity
Demand for gold is on a consistent upward trajectory. And with a positive price elasticity, the value of gold, without fail, increases as demand grows.
Rarity and limited supply
There is only enough gold in the world to fill two olympic-size swimming pools. This finite supply ensures gold’s intrinsic value and enduring prices.