Monday, July 15, 2024
HomeGoldDiversify Your Portfolio with Gold

Diversify Your Portfolio with Gold

Table of contents

Gold, believe it or not, is one of the earliest known traded assets on the market. Gold existed for many years before stocks, shares, crypto currencies, etf’s, or nft’s came into play.

There are so many opportunities available when adding gold to your investment portfolio, and whilst gold comes with its risk factors, it is generally one of the most sought after investments today. 


Gold has a hedge against inflation, with the ability to withstand economic downturn. Following Covid-19, investment in gold grew as the trust in banks diminished. Investors were using the commodity as a safety net in case an economic downturn arose once more.

Where we see our shares and stocks fall in an economic crisis, gold generally performs well, or retains its value, as well as being a universal currency. 

Let’s talk about wealth preservation. Gold is trusted by investors across the globe, a lot of this is due to its wealth preservation.

If you own £250 worth of gold in the 1970’s or 1980’s as well as owning £250 worth of cash, you will see your initial investment in your gold bars or coins rise significantly since this time, as much as 650%.

When considering the value of your £250 cash, this could have significantly decreased due to inflation, but it certainly won’t have increased in value like your gold.

You May Read: How Many Types of ISAs are Available in the UK?

How to Store Gold

Storing your gold bars is important. Keeping your investment safe is key, unlike owning stocks or shares, there is no certification to prove your ownership that will ensure your investment is kept safe.

Once your investment goes missing, it is gone, unless returned safely to you! Therefore we highly recommend doing your research into safe deposit boxes and their pros and cons to find a trusted facility.

Owning a safe deposit box that is guarded by vaults and high level of security ensures maximum safety of your investment. Being the sole owner of your safe deposit box you will have full access, meaning you can add or remove bullion from your vault at any time.

You May Read: Ways to Hedge Against Inflation

You can have a safe deposit box in your own home, however the danger with this comes with high risk of burglary, putting yourself and your family at risk. 

The additional benefits of a secure safe deposit box at a bullion brokerage or bank, are prevention of loss and damage. Bank vaults are designed to withstand all weather and elements, providing a safe place for your valuables and investments at all times.

Your gold should be stored somewhere that is protected against high heats and humidity, as well as water, and general fluctuations in temperature.

You May Read: Why You Should Know Risk Appetite before Investing?

More from MoneyVisual

Recent Posts

Most Popular

Educational Topics