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The price of gold has hit a series of all-time highs, catching the eye of savers and seasoned investors alike. The ‘yellow metal’ is glittering more brightly than it has for years, leading many to wonder whether it's time to get on board.
This surge is being fuelled by global instability (gold always does well in conditions like this) and huge purchases from the world's central banks, leading many to see gold as an essential defensive asset. But does a rising price mean you should jump in, or is there a risk of buying at the top? We’ll explore whether gold is a golden opportunity, or a gamble best avoided.
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Gold’s appeal centres on its role as a portfolio diversifier and store of value during uncertain times.
Chris Beauchamp, chief market analyst at IG, explains: “Unlike shares or bonds, gold often moves independently from traditional assets, providing crucial protection when correlations spike during market stress.”
When stock markets fall, the price of gold often moves in the opposite direction. So, having some of your portfolio invested in gold can add diversification, help reduce risk and make your investments more resilient.
Matthew Jones, precious metals analyst and co-founder of Britannia Bullion, says: “For years, gold has largely been viewed as protection or insurance. What we are now seeing is a shift where gold moves from being viewed purely as a hedge towards becoming part of the wider conversation around monetary stability.”
Beauchamp adds: “For investors sitting on cash earning minimal returns, gold offers a middle ground between volatile stocks and low-yielding savings accounts.”
Laith Khalaf, head of investment analysis at AJ Bell, points out: “Gold is durable, has a history of being money since time immemorial, and is difficult and expensive to produce. So it can be seen as a store of value at a time when inflation is eroding the purchasing power of money.”
According to BullionVault, the precious metals marketplace, top reasons for investing in precious metals include inflation protection and diversification.
Bear in mind that although it has risen in price in recent years, there is no guarantee that gold will keep pace with inflation, and it could easily fall in value.
The most famous of all precious metals has caught the eye of over-50s in particular. BullionVault told Saga Money that the number of over-50s investing in gold for the first time using its platform soared post-pandemic compared with previous years.
Adrian Ash, director of research at the firm, says the rise is due to older savers having more money that needs protecting, and gold’s ability to “help defend what you’ve got − something which the pandemic, inflation, [wars and conflict] all make more urgent”.
According to the wealth managers Charles Stanley, gold has performed “remarkably well” over the last three years, rising by nearly 125% in sterling terms.
Rob Morgan, the firm’s chief analyst, says: “The explanation lies in central bank buying, geo-political uncertainty, strong investment flows out of Asia, and resilient consumer demand.
At the start of 2026, there was also a favourable backdrop of interest rates across most major economies. That said, ongoing tensions in the Middle East and a potential spike in inflation because of the conflict, could yet send borrowing costs higher worldwide, especially if the war continues long into the summer.
At the end of April 2026, the gold price stood around the £3,430 per troy ounce mark, having peaked earlier in the year at £4,068. This compares with a figure of £2,610 in April last year.
Gold is often seen as a ‘safe haven’ and a way to protect your wealth during times of trouble. However, Khalaf warns that gold is volatile and can drop sharply.
“Investors in their 50s and above might be attracted to gold because of its ‘safe haven’ status. This comes from the fact that people tend to flock to the precious metal in times of financial stress, but this doesn’t mean gold isn’t volatile. It is, and steep losses can be incurred.
“Between 1980 and 1982, the gold price fell by over 60%, and between 2011 and 2015, it fell by around 45%. From its peak in 1980, the gold price fell by 33% over the next 20 years, and it took a further seven years to recover. That’s a long period in the wilderness.”
Gold doesn’t produce any income. This is in contrast to shareholders who may receive a dividend, and savers who get interest on their cash.
John Moore, wealth manager at RBC Brewin Dolphin, says: “There is no interest, no dividend yield and no fundamental value to benchmark gold against, so there can be periods of uncertainty. Before you invest, you should consider whether you are comfortable with this.”
Khalaf echoes this, adding: “Gold itself offers no yield, has limited industrial use and comes with a cost of ownership, in the form of storage and insurance, so many investors won’t embrace the metal, especially when they can get returns from cash in the bank that might currently exceed inflation.”
If you’re looking for a risk-free investment, gold isn’t the answer, as we’ve already highlighted with the performance figures. Nor is it necessarily the answer if you're looking for growth. Beauchamp says: “Growth-focused investors may find gold too conservative, particularly during bull markets when shares deliver superior returns.”
Instead, the yellow metal works best as a small allocation in a wider portfolio.
Khalaf adds: “Gold shouldn’t be seen as a cash proxy, nor should it be held in isolation. But it can be held alongside cash, bonds and shares as part of a diversified portfolio of assets that perform well at different times.”
Gold is usually part of your estate for inheritance tax purposes. The possible exemption is that gold held within a self-invested personal pension (more on this below) would currently be exempt from inheritance tax, but this will change from April 2027.
If you do want to pass gold on to your family, there are options to do this in your lifetime, in much the same way as you can choose to pass on cash.
Giving gold coins, such as gold sovereigns, as Christmas or birthday presents can help distribute wealth within the £3,000-a-year gifting allowance. Or you could do it using the regular gifts out of income allowance.
Gold can also be given as a marriage gift to children, grandchildren or others without triggering an inheritance tax liability.
There are several ways that people invest in gold, including buying gold bars and investing in a fund that tracks the gold price.
Moore says: “The issues with physical gold are practical ones – what if it’s lost or stolen, where do you store it and what are the associated costs? A fund can be easier as this is administered for you, typically with an exchange traded product provider.”
Here are the pros and cons of four different approaches:
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