Latest Prices (oz)
Gold: £—-.–
Silver: £–.–

Why buy gold?

Gold’s reputation as a safe-haven asset is well-established, and well-deserved.

Gold has always been a great investment (particularly in the last 20 years, which have seen the price of gold make an impressive drive from £176 per Troy ounce in 2000 to £1,220 in early 2020 – that’s 693%).

Historically, gold has proven itself as a safe-haven asset that steadily appreciates in value, consistently outperforming mainstream assets including traditional saving, stocks and share investment options – particularly during times of economic uncertainty and market volatility, during which the price of gold has accelerated most steeply.

And right now – amidst a global pandemic, shuttered economies, and political turmoil in both the UK and the US – is a time of economic uncertainty so unprecedented, that the word unprecedented was Merriam-Webter’s people’s choice for the word of the year.

Had you bought £1,000 bullion in 2002, by 2020 you would have seen six fold growth

Year Growth  Compounded
2002 25.6%  £           1,256
2003 19.9%  £           1,506
2004 4.6%  £           1,575
2005 17.8%  £           1,856
2006 23.2%  £           2,286
2007 31.9%  £           3,015
2008 4.3%  £           3,145
2009 25.0%  £           3,931
2010 25.2%  £           4,922
2011 8.9%  £           5,360
2012 8.3%  £           5,805
2013 -27.3%  £           4,220
2014 0.1%  £           4,224
2015 -12.1%  £           3,713
2016 8.1%  £           4,014
2017 12.7%  £           4,524
2018 0.9%  £           4,565
2019 18.4%  £           5,404
2020 12.5%  £           6,081

Gold Price Annual Growth

The Comparative Advantage of Gold vs. Other Mainstream Assets

Gold  vs

Innate value linked to rarity and limited supply
Time-established hedge against inflation
Easily liquidated, no counterparty risk

Cash in Banks

No intrinsic value, unlimited supply
Subject to inflation and currency depreciation
Subject to counterparty risk and management fees

Gold  vs

Easily and immediately liquidated
No minimum purchase
Holds value even during times of recession

Property

Entirely illiquid
High entry level
Values can fall and returns can shrink in times of economic uncertainty

Gold  vs

Historically, a consistent store of value
Secure, safe-haven asset
A long-term store of wealth

Bitcoin

Extremely high volatility
Prey to hacking and other digital vulnerabilities
A high-risk opportunity to trade quickly and win or lose a fortune

Gold  vs

Low volatility, secure store of wealth
The intrinsic rarity of gold ensures prices are aligned to value
Offers an effective hedge against market downturns, which impact most mainstream assets

Stocks, Shares, and Equities

High volatility and high risk
Quantitative easing has resulted in overvalued assets
An environment of lowered dividend yields and capital gains